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  • Exercise 2.2

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    Maricel Cantomayor
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    This document contains an exercise with 5 math problems involving calculating interest rates that are compounded at different intervals. The problems include finding the equivalent nominal rate compounded quarterly for a given monthly rate, converting an annual rate to a quarterly rate, calculating an interest rate based on an amount owed after a period of time, finding an equivalent rate given the same principal amounts accumulated to the same amount after different compounding intervals, and calculating the time needed for an amount to accumulate to a given total with a set interest rate and compounding interval.

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    (Exercise 2.2)

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    This document contains an exercise with 5 math problems involving calculating interest rates that are compounded at different intervals. The problems include finding the equivalent nominal rate compounded quarterly for a given monthly rate, converting an annual rate to a quarterly rate, calculating an interest rate based on an amount owed after a period of time, finding an equivalent rate given the same principal amounts accumulated to the same amount after different compounding intervals, and calculating the time needed for an amount to accumulate to a given total with a set interest rate and compounding interval.

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    © All Rights Reserved
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    5 views3 pages

    Exercise 2.2

    Uploaded by

    Maricel Cantomayor
    This document contains an exercise with 5 math problems involving calculating interest rates that are compounded at different intervals. The problems include finding the equivalent nominal rate compounded quarterly for a given monthly rate, converting an annual rate to a quarterly rate, calculating an interest rate based on an amount owed after a period of time, finding an equivalent rate given the same principal amounts accumulated to the same amount after different compounding intervals, and calculating the time needed for an amount to accumulate to a given total with a set interest rate and compounding interval.

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    © All Rights Reserved
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    Exercise 2.

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

    Solve the following problems:

    1. Find the nominal rate, compounded quarterly, which is equivalent to 7%


    compounded monthly?

    The nominal rate j = 7.03%

    2. What rate converted quarterly is equivalent to 10% converted annually?

    The rate converted quarterly is 9.65%.


    3. Emerson borrows Php 5,000 and agrees to pay Php 7,000 for his debt 18 months
    from now. At what rate compounded quarterly is he paying the interest?

    The rate compounded quarterly is 23.07%

    4. A principal of Php 4,000 was invested at a certain effective rate of interest. Another
    principal of Php 2,500 was invested on the same date and at the same rate of
    interest but compounded semiannually. In 5 years, the compound amounts of the
    two principals were the same. At what rate of interest is Php 4,000 invested?
    How long will it take for Php 5,000 to accumulate to Php 14,000 at 9% compounded
    semiannually?

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