Question

Adrian Ahren invests ₱350,000 at 16% interest compounded quarterly, for 7 years. Find thecompound amount of Adrian Ahren’s investment.

Answer 1

Compound amount is:

`A=P(1+(r)/(n))^(nt)`
`\begin{gathered} A=\text{ final amount} \\ P=\text{ Initial amount} \\ r=\text{ interest rate} \\ n=\text{ number of times interest applied per time period} \\ t=\text{ number of time periods} \end{gathered}`

Initial amount (p) = 350000.

Time (t) = 7

n = 4 (quarterly)

r (interest rate) = 16%

`\begin{gathered} r=(16)/(100) \\ r=0.16 \end{gathered}`
`\begin{gathered} A=P(1+(r)/(n))^(nt) \\ A=350000(1+(0.16)/(4))^(4*7) \\ A=350000(1+0.04)^(28) \\ A=350000*2.998 \\ A=1049546.16 \end{gathered}`