Name: Mark Angelo B.

Rentoy Section: AMN1 Date: March 6, 2024

Compound Interest Exercise 2

Manipulating the Compound Amount Formula.

A. Finding the Interest Rate per Compounding Period

Principal Future Value Term Interest Interest Rate per

(In pesos) (In pesos) Compounded Period

1. 50,000 114,860 3 ½ years Monthly 7%

2. 100,000 630,000 9 ½ years Semiannually 12.6%

3. 25,000 29,600 4 years Quarterly 12%

4. 2,000 7,000 30 years Annually 3.5%

5. 400,000 916,800 4 ½ years Quarterly 6%

B. Finding the Number of Compounding Periods

Principal Future Value Interest Rate Interest Number of

(In pesos) (In pesos) Compounded Compounding
Periods

1. 30,000 46,890 18% Monthly 21,559.8

2. 80,000 105,000 6% Semiannually 26,050

3. 20,000 32,380 14% Quarterly 18,488.93

4. 40,000 90,000 9% Annually 39,325

5. 50,000 87,050 8% Quarterly 47,678.67

C. Word Problems
1. How long will it take P10,000 to accumulate to the amount of P11,000 at 12% compounded
monthly?
(1 + 2%) =11,000.00/10,000.00
(1 + 2%) = 1.1%
= 7.27 years

2. How many years are needed for P40,000 to yield P13,756.66 interest if the interest rate is 6%
compounded semiannually?

F= 40,000 + 13,756.66 F= 10 yrs/2 = 5 yrs

 F= 53,756.66

3. On January 1, 2000, Abby borrowed P12,000 and agreed to repay it with P4,650.70 interest. If
the interest is at 6% compounded quarterly, what amount must she repay and on what date?

A = 12,000 + 4,650.70 = 16,650.70

= 1.38755

T = 0.142097

T = 15.92 years