Accumulate 50,000 pesos for 5.3/4 years at 8% compounded quarterly.

Determine the compound interest earned?

Given:

P=50,000

R=8%

I= 8/4 is 2%

N= 4(5.3/4 years) is 23

Formula:

F= P(1 +i)n

F= 50,000(1+0.02)23

F= 50,000(1.576899)

F= 78,844.95

I= F-P

I= 78,844.95- 50,000

I= 28,844.95 interest earned

P=3,500

R=5%

I= 5/2 is 2.5%

N= 5 x 2 is 10

Interest=?
Formula:

F= P(1 +i)n

F= 3,500(1+0.025)10

F= 3,500(1.280085)

F= 4,480.30

I= F-P

I= 4,480.30- 3,500

I= 980.30 interest earned

If money is worth 6% compounded semi-annually .Determine the present

value of 5,000 due at the end of 5 years.
Given:

F= 5,000

R=6%

I= 6/2 is 3%

N= 5 X 2 is 10

Formula:

P= F(1 +i)-n

P= 5,000(1+0.03)-10

P= 5,000(0.744093)

P=3,720.47

Discount 50,000 pesos for 20 years at 5% compounded semi- annually.

Determine present value and discount earned.
Given:
F= 50,000

R=5%

I= 5/2 is 2.5%

N= 20 X 2 is 40

Formula:

P= F(1 +i)-n

P= 50,000(1+0.025)-40

P= 50,000(0.372430)

P=18,621.50

I= F-P

I= 50,000- 18,621.50

I= 31,378.50 interest earned

How much will be the compounded interest of 1,000 pesos is invested

for one year at 6% compounded monthly.

Given:

P=1,000

R=6%

I= 6/12 is .5%

N= 1 x 12 is 12

Formula:

F= P(1 +i)n

F= 1,000(1+0.005)12

F= 1,000(1.061678)
F= 1,061.68

I= F-P

I= 1,061.68- 1,000

I= 61.68 interest earned

Discount 32,000 for 16.1/2 years at 8% compounded monthly. How

much is the discount

Given:

F= 32,000

R=8%

I= 8/12 is .66%

N= 16.5 X 12 is 198

Formula:

P= F(1 +i)-n

P= 32,000(1+0.0066)-198

P= 32,000(0.268343)

P=8,586.98

How much should you invest today to provide your only son a brand new
worth of 1million as a graduation gift 5 years from now if money is
worth 6% compounded semi-annually?
Given:

F= 1,000,000

R=6%
I= 6/2 is 3%

N= 5 X 2 is 10

Formula:

P= F(1 +i)-n

P= 1,000,000(1+0.03)-10

P= 1,000,000(0.744094)

P=744,093.91

Rafael borrowed 18, 500 for 18 months from bernardo, who charges
15and 1/5 % simple discount. How much money Rafael receive?
Ia= Fdt

Ia= 18500X.152X1.5

Ia= 4,218.00

Proceed = F-Ia

18500-4,218.00= 14,282.00

An obligation of 22, 800 pesos is due on January 8, 2021. What is the

value of the obligation on July 8, 2015 at 14.5% compounded quarterly?

F= 22,800

T= 5 years and 6 months

R= 0.145

I= .145/4= .03625

M=4

N= 5.5x 4 is 22
Formula:

P= F(1 +i)-n

P= 22,800(1+0.03625)-22

P= 22,800(0.456857)

P=10,416.34

I=F-P

=22,800-10,416.34

= 12,383.66