Find the interest and maturity value if Karen deposits P20,000 at a bank for 3 years at an interest rate of 4% per anum.
Share
Find the interest and maturity value if Karen deposits P20,000 at a bank for 3 years at an interest rate of 4% per anum.
Sign Up to our social questions and Answers Engine to ask questions, answer people’s questions, and connect with other people.
Login to our social questions & Answers Engine to ask questions answer people’s questions & connect with other people.
Answer:The formula for compound interest is where A is the amount after t years
P is the principal investment r is the interest rate
n is the number of times it is compounded in a year
Now plugging your given into this: P = 10,000, r = 2% or 0.02 in decimal form,
n = 4, since it is compounded quarterly, t = 5 years.
So maturity value = A = 10,000(1 + (0.02)/ 4)^(4x5)= Php 11,048.96.
Thus the interest = maturity value - principal = 11,048.96 - 10,000 = Php 1,048.96.
Step-by-step explanation: