= = = 37,000 PV = 1.48 PV = P25,000 Solving problem involving Compound Interest: 1. Jane invested 100, 000.00 in savings account and leaves it there for 4 years that accumulates an interest at 9% quarterly. How much she will earn at the end of 4th year? How much interest did she earn from her savings? Given: Principal amount = P100,000 rate = 12% k= 4 (quarterly) time = 4 years Solve for compound Interest: A = P(1+ P P(1+To solve for the interest earned: 1 = A-P . where: 1 = interest earned A = 100,000 (1 + 0.12 )(444) A = compounded interest/amount A = 100,000 (1 + 012) (16) P = principal amount A = 100,000(1.03 )(16) Solution: 1 = A-P A = 100,000(1.604706) J = 160,470.64 – 100,000 A = 160,470.64 I = 60, 470.64 Compound Amount: P160,470.64 Interest earned: P60, 470.64 kt ) 4 () Activity: Solve each problem. Write your solution and answer on the back of the paper.
1. Jun invested P80,000 to two different cooperatives. KP marketing offers with 50% simple interest monthly for a year while BM enterprises offers 30% interest compounded quarterly for 3 years. How much will he earn from each investment? Which of the two has a higher yield? 2. Rose paid her debt amounting P111,600,000 from a loan shark after a year with 15% interest rate per month. How much was present/principal value she borrowed? 3. Mrs. Recto availed an educational plan for her child. She invested P200,000 with 5% interest compounded semiannually. How much money she may have for the plan after 12 years?​