Compound Interest 1.) If P26,500 shall accumulate for 5 years at 7% compounded bimonthly, find the...

Compound Interest

1.) If P26,500 shall accumulate for 5 years at 7% compounded bimonthly, find the compounded interest at the end of 5 years.

2.) A sum of P 15,000 is invested now and left for eight years, at which time the principal is withdrawn. The interest has accrued and is left for another eight years. If the affective annual interest rate is 15%, what will be the withdrawal amount at the end of the 16th year?

3.) On his 4^th birthday, a boy is left an inheritance. The inheritance will be paid in a lump sum of P100,000 on his 21^st birthday. What is the present value of the inheritance as of the boy’s 6^th birthday, if the interest is compounded annually? i = 4%

4.) An businessman wishes to accumulate a total of P 500,000 in a savings at the end of 50 years. The bank offers 1% compounded quarterly. What should be the initial deposit?

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Expert Solution

Rahul Sunny answered 1 year ago

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