Name: Batas, Stephany Faye
Section: BSED-1B
EXERCISES
1. Mary joy deposited P 14,500 in a
bank that pays interest at 2%
compounded annually. If no
withdrawal is made, how much does
she have in her account after 5 years?
P= P 14,500
r= 2% (0.02)
m= 1
t= 5 years
i=j/m
=0.02/1
= 0.02
n= tm
=5*1
=5
𝐹 = 𝑃 (1 + 𝑖)n
= 𝑃 14,500 (1 + 0.02)⁵
= 𝑃 14,500(1.02)⁵
= 𝑷 𝟏𝟔, 𝟎𝟎𝟗. 𝟏7
2. If the principal invested by Anika is
P 50,000.00 and the interest rate
given by Peso Financial Inc. is 2.5%
compound quarterly, how much did
she earn at the end of 5 years?
P= P 50,000
r= 2.5% (0.025)
m= 4
t= 5 years
i=j/m
=0.025/4
= 0.00625
n= tm
=5*4
=20
𝐹 = 𝑃 (1 + 𝑖)n
= 𝑃 50,000 (1 + 0.00625)²⁰
= 𝑃 50,000(1.00625)²⁰
= P 𝟒𝟒, 𝟏𝟒𝟐. 1𝟎
3. Find the compound interest earned
at the end of 2 years and 5 months of
an investment fund amounting to P
24,500 if it is invested at 3.5%
compounded monthly.
P= P 24,500
r= 3.5% (0.035)
m= 12
t= 2 years and 5 months or 2.417
i=j/m
=0.035/12
= 0.002917
n= tm
=2.417*12
=29.004 or 29
