Mr. Ocampo invested ₱150,000 at 10% compounded annually. He plans to get this amount after 6 years for his son's college education. How much will he get. Show complete solution.please.
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Mr. Ocampo invested ₱150,000 at 10% compounded annually. He plans to get this amount after 6 years for his son's college education.
Answer:
Mr. Ocampo will get P 265,734.15 after 6 years.
Step-by-step explanation:
Mr. Ocampo invested ₱150,000 at 10% compounded annually. He plans to get this amount after 6 years for his son's college education. How much will he get.
Given:
Principal = 150,000
Interest Rate = 0.10
Time = 6 years
nth time compounded per year = 1
Required:
Future Value
Equation:
FA=P(1+\frac{r}{n})^{nt}FA=P(1+
n
r
)
nt
Solution:
FA=150,000(1+\frac{0.1}{1})^{(1)(6)}FA=150,000(1+
1
0.1
)
(1)(6)
FA=150,000(1+0.1)^{(6)}FA=150,000(1+0.1)
(6)
FA=150,000(1.1)^{(6)}FA=150,000(1.1)
(6)
FA=150,000(1.771561)FA=150,000(1.771561)
FA = 265,734.15
Answer:
P 265,734.15 (6 years)