Final answer:
The interest on Php 25,000 invested for 3 years at 7% compounded quarterly is approximately Php 4,499.26.
Step-by-step explanation:
To find the interest on Php 25,000 invested for 3 years at 7% compounded quarterly, we can use the compound interest formula:
A = P(1 + r/n)^(nt)
Where:
- A is the total future amount
- P is the principal (initial investment)
- r is the annual interest rate (as a decimal)
- n is the number of times the interest is compounded per year
- t is the number of years
Plugging in the values, we have:
A = 25000(1 + 0.07/4)^(4*3)
Simplifying:
A = 25000(1.0175)^12
Calculating:
A ≈ Php 29,499.26
Finally, the total interest earned is:
Interest = A - P
Interest = 29499.26 - 25000