Question

What is the present value of ₱30,000 due in 27 months at 3% compounded annually?

Answer 1

32,063.06

Explanation:

the formula for compound interest:
`A = P(1+(r)/(n))^(nt\\)`

so to use this you are essentially solving for a.

p is the principle (or initial) amount deposited.

r is the rate (in percent)

n is the number of time periods compounded (like annually, monthly, weekly, or daily)

t is the time period (in years)

In this instance the formula looks like:
`A = 30,000(1+(0.03)/(1))^(1*2.25)`

You then solve for A using the formula. It is important to remember to use the order of operations