Question

Calculate the compound amount of ₱300,000 invested at 8% interest compounded quarterly, for 5 years.

Answer 1

Using the compound interest formula:

`\begin{gathered} A=P(1+(r)/(n))^(nt) \\ \end{gathered}`

Where:

A = Amount

P = Principal = 300000

r = Interest rate = 8% = 0.08

t = time = 5

n = Number of times interest is compounded = 4

so:

`\begin{gathered} A=300000(1+(0.08)/(4))^(4\cdot5) \\ A=300000(1+(0.08)/(4))^(20) \\ A=300000(1.02)^(20) \\ A=445784.2188 \end{gathered}`