Question

Belle Taberna invested ₱2,500 at the beginning of every 3-month period, for 5 years, at 8% interest compounded quarterly. How much is Belle’s investment worth after 5 years?

Answer 1

We have

Interest 8% compounded quarterly

Invested 2500

5 years

Then:

compounded quarterly is n = 4

`A=P(1+(r)/(n))^(nt)`

Where P is 2500, r = 0.08 and t = 5

`A=2500(1+(0.08)/(4))^(4*5)=2500(1.02)^(20)=3714.87`

Answer: $3714.87