Final answer:
After 10 years, by investing Php 30,000 in a trust fund with a 4% interest rate compounded quarterly, you will have approximately Php 44,665.91.
Step-by-step explanation:
If you start investing Php 30,000 now in a trust fund that pays 4% compounded quarterly, you can calculate the future value of this investment after 10 years by using the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
- A is the amount of money accumulated after n years, including interest.
- P is the principal amount (the initial amount of money).
- r is the annual interest rate (decimal).
- n is the number of times that interest is compounded per year.
- t is the time the money is invested for in years.
So for your case, P is Php 30,000, r is 0.04 (4% interest), n is 4 (since interest is compounded quarterly), and t is 10 (for 10 years). Plugging these values into the formula we get:
A = 30,000(1 + 0.04/4)^(4*10)
A = 30,000(1 + 0.01)^(40)
A = 30,000(1.01)^(40)
A = 30,000(1.48886373402)
A ≈ Php 44,665.91
Therefore, after 10 years, you will have approximately Php 44,665.91 in your trust fund.