1.) A student has money given by his grandfather in the amount of P20,000.00. How much money in the form of interest will he get if the money is put in a bank that offers 8% rate compounded annually, at the end of 7 years?
Added by Kara S.
Step 1
00 r = annual interest rate = 8% or 0.08 n = number of years = 7 Plugging in the values: \[ A = P(1 + r)^n \] \[ A = P(1 + 0.08)^7 \] \[ A = P(1.08)^7 \] \[ A = P(1.718592) \] \[ A = P34,371.84 \] Show more…
Show all steps
Your feedback will help us improve your experience
Haricharan Gupta and 92 other Macroeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
3.) A man wishes his son to receive P500,000.00 ten years from now. What amount should he invest now if it will earn interest of 12% compounded annually during the period?
Brooke B.
A student has money given by his grandfather in the amount of P20,000.00. How much money in the form of interest will he get if the money is put in a bank that offers an 8% rate compounded annually, at the end of 7 years?
Himani S.
Solve each problem. See Example $9 .$ Compounding contimuously. If $\$ 500$ is deposited in an account paying $7 \%$ compounded continuously, then how much will be in the account after 3 years?
Exponential and Logarithmic Functions
Exponential Functions and Their Applications
Recommended Textbooks
Principles of Economics
Macroeconomics
Economics
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD