Mr. Paul makes an initial investment of P6,000 for a period of 3 years. Find the value of the investment after the three years if the investment earns the return of 10.5% compounded monthly.

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
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1. Mr. Paul makes an initial investment of P6,000 for a period of 3 years.
Find the value of the investment after the three years if the
investment earns the return of 10.5% compounded monthly.
2. What is the term if the final amount is P7,321 and the principal is
P2,500 at 15% compound interest rate compounded quarterly?
3. Find the compound interest of a $4,750 loan, 11% compound interest
compounded monthly for 2.5 years.
4. What is the principal of a loan if the final amount is P250,000 at 8%
compound interest, compounded semi-annually for 4 years?
Transcribed Image Text:1. Mr. Paul makes an initial investment of P6,000 for a period of 3 years. Find the value of the investment after the three years if the investment earns the return of 10.5% compounded monthly. 2. What is the term if the final amount is P7,321 and the principal is P2,500 at 15% compound interest rate compounded quarterly? 3. Find the compound interest of a $4,750 loan, 11% compound interest compounded monthly for 2.5 years. 4. What is the principal of a loan if the final amount is P250,000 at 8% compound interest, compounded semi-annually for 4 years?
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