If P20,000 is invested in a fund that pays 10% compounded annually, how much money will be in the fund after 3 years? Accumulate P30,000 for 3 years and 6 months at 16% compounded semiannually. What is the compound amount after you invest P22,350 for 5 years and 6 months at 5% compounded semiannually? What is the (a) present value and (b) compound interest earned for 3 years and 9 months of P84,500 that is compounded quarterly at 20% interest? Find the nominal rate which when compounded semiannually and applied to a P50,000 principal will earn an interest of P5,000 after 60 months. In how many months will P10,000 earn a compound interest of P2,000 if money is worth 12% compounded monthly? What effective rate is the equivalent to 15% compounded annually?

Answer - Part 1 - If P20,000 is invested in a fund that pays 10% compounded annually, how much…

Answered: If P20,000 is invested in a fund that…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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If P20,000 is invested in a fund that pays 10% compounded annually, how much money will be in the fund after 3 years?
Accumulate P30,000 for 3 years and 6 months at 16% compounded semiannually.
What is the compound amount after you invest P22,350 for 5 years and 6 months at 5% compounded semiannually?
What is the (a) present value and (b) compound interest earned for 3 years and 9 months of P84,500 that is compounded quarterly at 20% interest?
Find the nominal rate which when compounded semiannually and applied to a P50,000 principal will earn an interest of P5,000 after 60 months.
In how many months will P10,000 earn a compound interest of P2,000 if money is worth 12% compounded monthly?
What effective rate is the equivalent to 15% compounded annually?

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