Compound Interest

Exercise Set no. 1

Name: _________________________________________ Date: __________________
Strand & Section: _________________________________ Score: _________________

Compound Interest Formula

F=P(1+i)n
F
P= or −n
P=F (1+i)
( 1+i)n P= Principal amount of the loan or
I =F−P investment
F=I + P j = Nominal interest rate
P=F−P m = Number of conversion per year
j t = Time period( term ) of the loan or
i=
m investment
n=m× t i = periodic interest rate

(√ FP −1)
I = Amount of interest paid or received
n
j =m F= Maturity value of the loan or investment

log ( F ÷ P)
t=
mlog(1+i)

I. Complete the table

F P r t I
1
2
3
4
5
II. Solve the following:
1. Find the amount due if 38,000 pesos is invested at 9% compounded
quarterly.

2. If money is invested at 12% compounded monthly, find the final amount

of 14,500 pesos due at the end of 10 years and 6 months.

Compound Interest Exercise Set no. 1 Page 1

 3. Find the rate compounded semi- annually if 20,000 pesos accumulates to
40,000 pesos in 6 years.

4. Find the interest charged on a loan of 12,400 pesos for 8 years at 17%
compounded monthly.

5. How long it will take for 10,500 pesos to accumulate to 12, 300 pesos at
20% compounded bimonthly?

6. A principal amount of 30,000 pesos was placed in an investment which

gives the interest of 12% compounded monthly. How long will it get the
amount of 50,000 pesos?

7. Find the compound interest on 67,000 pesos at the end of 8 years at 9%

compounded quarterly.

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