When 500 pesos is compounded monthly at 4% interest rate fo 3 years, what is the frequency of conversion?

asked Apr 23, 2022 99.3k views

13 votes

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8 votes

Answer:

The answer is "562.432"

Explanation:

Given:

$P= 500\\\\r= 4\%\\\\n= 3 \ years\\\\\text{frequency of conversion}\ (A)=?$

Using formula:

$\to A=P(1+r)^n$

$= 500(1+4\%)^3\\\\= 500(1+(4)/(100))^3\\\\= 500(1.04)^3\\\\=500 * 1.124864\\\\= 562.432$

Evantkchong answered Apr 26, 2022

3.2k points

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