Peter invested an amount of money and accumulated in the amount of

350,000 pesos in 5 years. In what nominal rate compounded quarterly if

peter invested 200,000 pesos
Given:

P= 200,000

F=350,000

T=5 YEARS

M=4

We can compute the total conversions from the given data: n=5x4=20

Required: j=?

( )
1/ n
F
J= ⌊ −1 ⌋ m
P

( )
1 /20
350,000
J= ⌊ −1 ⌋ 4
200,000

J= 11.35%

What is the amount of principal of the accumulated amount of 2,374,500

pesos for 5 years having an interest of 12 ½ % compounded semi-
annually?

Given:

P= ?

F=2,374,500

T=5 YEARS

M=2

J= 12 ½ %
We can determine the conversion rate and total conversions with the given values

0.125
i=
2
i= 0.0625

n=(2)(5)
n=10

formula:
F
P=
(1+i) n

2,374,500
P= 10
(1+0.0625)

P= 1,295,038.82

Accumulate 100,000 for 10 years with an interest of 14% compounded

quarterly

Given:

P= 100,000

F=?

T=10 YEARS

M=4

J= 14 %

0.14
i=
4
i= 0.0350

n=(4)(10)
n=40

formula:
F=P (1+i)n
F=100,000 (1+0.0350)40
F=100,000 (1.0350)40
F=395,925.97

What would be the simple discount rate if a future value of 450,000

yields a proceeds of 425,00 in 75 days?

Given:
F= 450,000
P= 425,000
T=75 days
Required: d=?

Formula:
D
D=
Ft
But simple discount D is equal to: F-P,
Hence;

450,000−425,000
D= 75
450,000 x( )
360

D=26.67%

A note amounting to 125,000 has a discount charge of 23,000. How long

will it take if money is worth 15% simple discount?

Given:
D= 23,000
F= 125,000
d=15%
Required: t=?

Formula:
t=D/Fd

23,000
T=
125,000 x 0.15
T=1.23 years
How many days will it take to rediscount a million pesos postdated
check if the proceeds is 955,000 and the money is worth 12% simple
discount?

Given:
F= 1,000,000
P= 955,000
d=12%
Required: t=?

Formula:
t=D/Fd
but the simple discount D is equal to:F-P

1,000,000−955,000
T=
100,000 , 000 x 0.12
T=45,000/120,000
T= .375 years or 4.5 months or 135 days