Assessment Task 5

1. Accumulate 5,300 for 5 years and 9 months at 5 ½% compounded quarterly.

Solution:
A = P(1 + r/n)nt
= 5,300(1 + 0.055/4)(4)(5.75)
= 5,300(1 + 0.01375)(23)
A = ₱ 7,255.81
2. Find the compound amount and interest on 6,100 for 4 years and 3 months at 6% compounded
quarterly.
Solution:
A = P(1 + r/n)nt I=A–P
= 6,100(1 + 0.06/4)(4)(4.25) = 7,856.92 – 6,100
= 6,100(1 + 0.015)(17) I = ₱ 1,756.92
A = ₱ 7,856.92
3. What sum of money will be required to settle an obligation of 10,500 on April 1, 1992 if the loan is
made on October 1, 1986 at a rate of 7% compounded quarterly.
Solution:
Oct. 1, 1986 to Apr. 1, 1992 = 5 years and 6 months
A = P(1 + r/n)nt
= 10,500(1 + 0.07/4)(4)(5.5)
= 10,500(1 + 0.0175)(22)
A = ₱ 15,379.65
4. Accumulate 1,200 for 26 years and 3 months at 5 ½% compounded quarterly
Solution:
A = P(1 + r/n)nt
= 1,200(1 + 0.055/4)(4)(26.25)
= 1,200(1 + 0.01375)(105)
A = ₱ 5,034.11

5. Find the compound amount and interest on 720 for 40 years and 6 months at 4 ½% compounded
quarterly.
 Solution:
A = P(1 + r/n)nt I=A–P
= 720(1 + 0.045/4)(4)(40.5) = 4,409.76 – 720
= 720.00(1 + 0.01125)(162) I = ₱ 3,689.76
A = ₱ 4,409.76
6. Find the value of the following, if the present value is 1,100 at 9% converted annually for 58 years.
Solution:
A = P(1 + r/n)nt
= 1,100.00(1 + 0.09/1)(1)(58)
= 1,100.00(1 + 0.09)(58)
A = ₱ 162,978.22
7. Accumulate 2,800 at 6% compounded quarterly for 7 years and 5 months.
Solution:
A = P(1 + r/n)nt
= 2,800(1 + 0.06/4)(4)(7.416667)
= 2,800.00(1 + 0.015)(29.666668)
A = ₱ 4,354.96

I = A x rt
= 4,354.96 x 0.06 x 2/12
I = ₱ 43.55

A=A+I
= 4,354.96 + 43.55
A = ₱ 4,398.51

8. Find the compound amount and interest on 5,500 at 4% compounded semi-annually for 8 years and 8
months.
Solution:
A = P(1 + r/n)nt I=A–P
= 5,500(1 + 0.04/2)(2)(8.666667) = 7,752.33 – 5,500
 = 5,500(1 + 0.02)(17.333334) I = ₱ 2,252.33
A = ₱ 7,752.33
9. On August 1, 1990 Mr. Talamos borrows 9,500 and agrees to pay the compound amount on the day he
pays the debt. If interest is at the rate of 5 ½% compounded quarterly, how much must Mr. Talamos pay
to discharge his obligation on January 1, 2001
Solution:
Aug. 1, 1990 to Jan. 1, 2001 = 10 years and 5 months
A = P(1 + r/n)nt
= 9,500(1 + 0.055/4)(4)(10.416667)
= 9,500(1 + 0.01375)(41.666668)
A = ₱ 16,781.98
10. Discount 8,200 for 5 years and 5 months at 5% compounded monthly.
Solution:
P = A / (1 + r/n)nt
= 8,200 / (1 + 0.05/12)(12)(5.416667)
= 8,200 / (1 + 0.004166667)( 65.000004)
P = ₱ 6,258.02
11. Find the present value of 11,600 due at the end of 7 years and 6 months if money is worth 4 ½%
converted semi-annually
Solution:
P = A / (1 + r/n)nt
= 11,600 / (1 + 0.045/2)(2)(7.5)
= 11,600 / (1 + 0.0225)(15)
P = ₱ 8,308.22

12. If money is worth 3 ½% compounded monthly, find the compound discount if 12,200 is discounted
for 2 years and 11 months.
Solution:
P = A / (1 + r/n)nt Discount = A – P
= 12,200 / (1 + 0.035/12)(12)(2.916668) = 12,200 – 11,017.68
= 12,200 / (1 + 0.002916667)(35.000016) Discount = ₱ 1,182.32
P = ₱ 11,017.68
13. Discount 18,600 due at the end of 28 years and 4 months at 9% compounded monthly
Solution:
P = A / (1 + r/n)nt
= 18,600 / (1 + 0.09/12)(12)(28.333334)
= 18,600 / (1 + 0.0075)(340.000008)
P = ₱ 1,466.20
14. Find the present value of 12,000 due at the end of 60 years at 10% compounded annually.
Solution:
P = A / (1 + r/n)nt
= 12,000 / (1 + 0.1/1)(1)(60)
= 12,000 / (1 + 0.1)(60)
P = ₱ 39.41
15. Find the present value of the following if the compound amount is 10,500 at 10% converted annually
for 65 years.
Solution:
P = A / (1 + r/n)nt
= 10,500 / (1 + 0.1/1)(1)(65)
= 10,500 / (1 + 0.1)(65)
P = ₱ 21.41