Verified answer

If Php 20,000.00 is deposited in a savings account at an annual rate of 5%. What is the amount in the account at the end of 3 years if interest is compounded;

• a. Annually
• b. Quarterly

(a)

• P = 20,000.00
• R = 5% or 5/100 = 0.05
• T = 3

(b)

• P = 20,000.00
• R = 5% or 5/100 = 0.05
• T = 3
• N = 4 (Since interest is compounded quarterly)

(a)

Thus, Php 23,152.5 is the amount in the account at the end of 3 years if interest is Compounded Annually

(b)

Thus, Php 23,215.09 is the amount in the account at the end of 3 years if interest is Compounded Quarterly.

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