Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

John invested P100,000 at an interest of 9% compounded quarterly. How many years should John invest the money to receive a compound interest of P50,0000?

John invested P100,000 at an interest of 9% compounded quarterly. How many years should John invest the money to receive a compound interest of P50,0000? 


2. An engineer decided to put up a trust fund for her daughter with the condition that his daughter will receive the earnings of the 400,000 at the end of every 4 years until the 20th year when his daughter will receive P400,000 earning including also the money initially deposited. If the bank guaranteed a 16% interest per year, what is the principal worth to meet such condition? 


3. The cost for maintaining a car cost as follows: 2 years- P20,000 4 years- P40,000 8 years- 80,0000. Solve for the semi-annual amount for the car if the interest is 10% compounded annually.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

1 To find out how many years John should invest the money to receive a compound interest of P50000 we can use the compound interest formula A P left1 ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance Turning Money into Wealth

Authors: Arthur J. Keown

8th edition

134730364, 978-0134730363

More Books

Students also viewed these Accounting questions

Question

Describe three of Fechners psychophysical methods.

Answered: 1 week ago