Exercise 2.

Name: CANTOMAYOR, MARICEL A. Cr/Yr/Sec: 3BSE - C Score:_______

Perform as indicated.

1. Find and compare the values of an investment of Php 50,000 after 12 months if it earns
7.2% compounded:

a. Annually

b. Quarterly

c. Monthly
2. A man died leaving his 15 year-old son an amount of Php 15,000 which is deposited in a
bank at 6% interest compounded monthly. If money was left in the bank and was allowed to
accumulate, how much will the boy receive when he reaches the age of 25?

The boy will receive Php 27,290.95 at the age of 25.

3. An eleven year old boy was left an inheritance of Php 10,000 in a trust fund. This money
has to be placed in the fund until he becomes 21.
a. If money is invested at 5% effective what will be its amount when the boy reaches 21?

The amount when the boy reaches 21 will be Php 16,288.95

b. If the investment rate drops at 4% at the end of 5 years, what will be the amount
when he reaches 21?

At rate 4%, the amount when the boy reaches 21 will be Php 15,527.57