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1.
PRINCIPAL COMULATIVE
YEAR COMULATIVE RATE TIME INTEREST INTETREST TOTAL
INTEREST
1 18,000 6% 1 1,080 1,080 19,080
2 18,000 6% 1 1,080 2,160 20,160
2.
PRINCIPAL COMULATIVE
YEAR COMULATIVE RATE TIME INTEREST INTETREST TOTAL
INTEREST
1 800,000 15% 1 120,000 120,000 920,000
2 800,000 15% 1 120,000 240,000 1,040,000
3 800,000 15% 1 120,000 360,000 1,160,000
4 800,000 15% 1 120,000 480,000 1,280,000
5 800,000 15% 1 120,000 600,000 1,400,000
3.
PRINCIPAL COMULATIVE
YEAR COMULATIVE RATE TIME INTEREST INTETREST TOTAL
INTEREST
8
months 25,000 2% 1 500 500 25,500
4.
PRINCIPAL COMULATIVE
YEAR COMULATIVE RATE TIME INTEREST INTETREST TOTAL
INTEREST
1 7,000 11% 1 770 770 7,770
2 7,000 11% 1 770 1,540 8,540
3 7,000 11% 1 770 2,310 9,310
5.
PRINCIPAL COMULATIVE
YEAR COMULATIVE RATE TIME INTEREST INTETREST TOTAL
INTEREST
6months 5,000 1.5% 1 75 75 5,075
EXERCISE 2
1.
PRINCIPAL COMULATIVE
YEAR COMULATIV RATE TIME INTEREST INTETREST TOTAL
E INTEREST
1 18,000 6% 1 1,080 1,080 19,080
2 18,000 6% 1 1,144.8 2,224.8 20,224.8
PRINCIPAL COMULATIV
YEAR COMULATIV RATE TIME INTEREST E INTETREST TOTAL
E INTEREST
1 800,000 15% 1 120,000 120,000 920,000
2 800,000 15% 1 138,000 258,000 1,058,000
3 800,000 15% 1 158,700 416,700 1,216,700
4 800,000 15% 1 182,505 599,205 1,399,205
5 800,000 15% 1 209,880.75 809,085.75 1,609,085.75
3.
PRINCIPAL COMULATIVE
YEAR COMULATIVE RATE TIME INTEREST INTETREST TOTAL
INTEREST
1 7,000 11% 1 770 770 7,770
2 7,000 11% 1 854.7 1,624.7 8,624.7
3 7,000 11% 1 948.717 2,573.417 9,573.417
TOTAL COMPOUND INTEREST: 2,573.417
EXERCISE 3
1. 3.
=20,224.8 = 9,573.417
2.
FV5= 800,000(1+0.015)5
=1,609,085.75
EXERCISE 4
1.
= 16,019.93
2.
= 397,741.39
3.
= 5,118.34