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  • What Will Your January 1, 20x9 Balance Be If The Bank Uses Quarterly Compounding

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    Dummy Google
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    The document describes calculating the future value of an initial deposit of P100,000 into a savings account paying 8% interest compounded quarterly over 1 year. It provides the formula to calculate future value as the present value multiplied by 1 plus the periodic interest rate raised to the number of periods. Using the given values, the calculated future value after 1 year is P106,120.80.

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    What Will Your January 1, 20x9 Balance Be if the Bank Uses Quarterly Compounding

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    The document describes calculating the future value of an initial deposit of P100,000 into a savings account paying 8% interest compounded quarterly over 1 year. It provides the formula to calculate future value as the present value multiplied by 1 plus the periodic interest rate raised to the number of periods. Using the given values, the calculated future value after 1 year is P106,120.80.

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    70 views1 page

    What Will Your January 1, 20x9 Balance Be If The Bank Uses Quarterly Compounding

    Uploaded by

    Dummy Google
    The document describes calculating the future value of an initial deposit of P100,000 into a savings account paying 8% interest compounded quarterly over 1 year. It provides the formula to calculate future value as the present value multiplied by 1 plus the periodic interest rate raised to the number of periods. Using the given values, the calculated future value after 1 year is P106,120.80.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    It is now January 1, 20x8.

    Today you will deposit P100,000 into


    a savings account that pays 8%.
    What will your January 1, 20x9 balance be if the bank uses
    quarterly compounding?

    Given:
    PV= P100,000
    I= 8%
    Periodic rate= 2%
    N= Number of periods= 3 periods
    FVN=?

    Solution:
    FVN= PV (1+I) N
    FVN = P100, 000 (1+0.02)3
    FVN = P106, 120.80

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