Answered: 8. An amount of P 5000 is deposited in…

8. An amount of P 5000 is deposited in a bank paying an annual interest rate of 3.1% compounded continuously. Find the balance after 3 years. A. P 8754.31 B. P 4857.31 C. P 7584.31 D. P 5487.31

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 21MC: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an...

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Concept explainers

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.

Question

8. An amount of P 5000 is deposited in a bank paying an annual interest rate of 3.1% compounded
continuously. Find the balance after 3 years.
A. P 8754.31
B. P 4857.31
C. P 7584.31
D. P 5487.31

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