queensona25
for me the formula you'll use in 1 is Simple Interest Formula then number 2 is Compound Interest Formula
onlyakem
well it doesnt change the answer a lot. a difference of P25.10 may be noticed.
onlyakem
For the sake of satisfying the instructions though, I used compounded. although r is basically the same because of the fact that n = 1 (compounded annually), t will alter the result a little
Answers & Comments
PA= Principal Ammount
IR= Interest Rate
I= Interest
ANSWER:
1) P100,000*0.5%=500 To get compound interest,
multiply PA to IR
500(5)=2,500 5 yrs means 5(0.5%) of the PA
and this the interest he gained
P100,000+2,500=P102,500 will be his money
after 5 yrs
2) P47,500-35,400=P12,100
2 yrs=____months
2(12)=24
2 yrs=24 months
r=FV/PV^1/n-1 (P47,500P35,400)^1/24-1=1.3418079096^(0.04167)
-1
1.01232708535-1= 0.01232708535
1.23% is the interest rate compounded
monthly.