Lance A.

Salabsab

Partner: Mark Menchaves

1. Mr. Mark Menchaves invested 20,000 for 10 years in Dub Company Inc. that pay 2%
compounded semiannually, how much will he receive after 10 years?
P= 20,000
t=10 years
i= 2%
after 10 years?

i= 0.01
t=10 (2)=20

F = P (1+i)^n
=P20,000(1+0.01)^5
= P24,403.80
2. Mr. Mark Menchaves borrowed P30,000 at Dub Company Inc. and the interest is 3%
compounded quarterly and makes no repayments over 5 years. Then his debt would rise from P
30,000 to 34,829.07
P= P30,000
T=5 years
I=3% compounded quarterly
After 5 years ?
I= 0.01
T=5(3)=15
F=P(1+i)^n

= P30,000 ( 1 + 0.01) 15

= P 34,829.07

Reflection:

My reflection for this is, Investing is important to accomplish even if it is a short or long term. It is a great
opportunity for everyone. It is a big risk to invest but everyone can learn something for that. Compound
interest plays a large role in today’s world. It affects our financial goals as well as our financial lives. It
can even affect our day-to-day life if we are not careful. It can lead to blessings or burdens.