Scribd Logo
Upload

Welcome to Scribd!

  • 207 views

    Math Seat Work 5-1

    Uploaded by

    Aline Pearl Anduque
    The document contains 5 word problems involving compound interest calculations: 1) Calculating the maturity value of PHP 12,000 invested at 15% compounded quarterly over 4 years. 2) Calculating the maturity value of PHP 3,000 invested at 9.5% compounded semiannually for 3.5 years. 3) Calculating the initial investment needed to accumulate PHP 21,000 after 4.75 years at 9% compounded quarterly. 4) Calculating the initial deposit needed to accumulate PHP 200,000 in 4 years with an investment earning 10% compounded quarterly. 5) Determining whether a PHP 6,500,000 cash purchase or PHP 4

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Math Seat Work 5-1

    Uploaded by

    Aline Pearl Anduque
    207 views4 pages
    The document contains 5 word problems involving compound interest calculations: 1) Calculating the maturity value of PHP 12,000 invested at 15% compounded quarterly over 4 years. 2) Calculating the maturity value of PHP 3,000 invested at 9.5% compounded semiannually for 3.5 years. 3) Calculating the initial investment needed to accumulate PHP 21,000 after 4.75 years at 9% compounded quarterly. 4) Calculating the initial deposit needed to accumulate PHP 200,000 in 4 years with an investment earning 10% compounded quarterly. 5) Determining whether a PHP 6,500,000 cash purchase or PHP 4

    Original Title

    math seat work 5-1

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document contains 5 word problems involving compound interest calculations: 1) Calculating the maturity value of PHP 12,000 invested at 15% compounded quarterly over 4 years. 2) Calculating the maturity value of PHP 3,000 invested at 9.5% compounded semiannually for 3.5 years. 3) Calculating the initial investment needed to accumulate PHP 21,000 after 4.75 years at 9% compounded quarterly. 4) Calculating the initial deposit needed to accumulate PHP 200,000 in 4 years with an investment earning 10% compounded quarterly. 5) Determining whether a PHP 6,500,000 cash purchase or PHP 4

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    207 views4 pages

    Math Seat Work 5-1

    Uploaded by

    Aline Pearl Anduque
    The document contains 5 word problems involving compound interest calculations: 1) Calculating the maturity value of PHP 12,000 invested at 15% compounded quarterly over 4 years. 2) Calculating the maturity value of PHP 3,000 invested at 9.5% compounded semiannually for 3.5 years. 3) Calculating the initial investment needed to accumulate PHP 21,000 after 4.75 years at 9% compounded quarterly. 4) Calculating the initial deposit needed to accumulate PHP 200,000 in 4 years with an investment earning 10% compounded quarterly. 5) Determining whether a PHP 6,500,000 cash purchase or PHP 4

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    1.

    What will be the maturity value of ₱12,000 invested for four (4) years at 15%

    Compounded quarterly?

    Given:

    P = 12,000

    J = 15% or 0.15

    M= 4

    T= 4 years

    N = tm = 4 (4) = 16

    I = j/m = 0.15/4 = 0.0375


    Answer:
    F= P (1 + I )n

    F = 12,000 ( 1 + 0.0375) 20

    F = 12, 000 ( 1.0375) 20

    F = 12, 000 (1.802227807)

    F = 21, 626.73 will be the maturity value.

    2. Determine the maturity value of ₱3,000 invested at 9.5% compounded

    Semiannually for 3 ½ years.

    Given:

    P = 3,000

    J = 9.5% or 0.095

    M= 2

    T= 3 ½ years = 3.5

    N = tm = 4 (4) = 16
    I = j/m = 0.15/4 = 0.0375
    Answer:
    F= P (1 + I )n

    F = 12,000 ( 1 + 0.0375) 20

    F = 12, 000 ( 1.0375) 20

    F = 12, 000 (1.802227807)

    F = 21, 626.73 will be the maturity value.

    3. What amount must be invested now in savings account earnings 9%

    Compounded quarterly to accumulate a total of ₱21,000 after 4 ¾ years?

    Given:

    J = 9% or 0.09

    M= 4

    F = 21,000

    T= 4 ¾ years = 4.75

    N = tm = 4.75 (4) = 19

    I = j/m = 0.09/4 = 0.0225


    Answer:
    P = F/ (1 + I ) n

    P = 21, 000 / (1 + 0.0225)19

    P = 21, 000 / (1.0225)19

    P = 21, 000/1.526170367

    P = 13, 759. 93169

    P = 13, 759. 93 is the amount that must Be invested.

    4. Millet wants to provide a ₱200,000 graduation gift for her daughter Mae who
    Is now 16 years old. She would like the fund to be available by the time her

    Daughter is 20. She decides on an investment that pays 10% compounded

    Quarterly. How large must the deposit be?

    Given:

    F = 200,000

    J = 10% or 0.10

    M=4

    T= 4 years

    N = tm = 4 (4) = 16

    I = j/m = 0.10/4 = 0.025


    Answer:
    P = F/ (1 + I ) -n

    P = 200, 000 / (1 + 0.025)-16

    P = 200, 000 / (1.025)-16

    P = 200, 000/0.6736249335

    P = 134, 724. 99 shall be the deposit.

    5. Ms. Cruz can buy a piece of property for ₱6,500,000 cash or ₱4,000,000

    Down payment and

    ₱4,200,000 in five (5) years. If she has money earning 8% converted

    Quarterly, which is a better purchased plan and by how much?

    P = 2, 500, 000

    J = 8 % X 4 = 32% Or 0.32

    M= 4
    Answer:
    F= P (1 + I )n

    F = 2, 500, 000 ( 1 + 0.08) 20

    F = 2, 500, 000 ( 1.08) 20

    F = 2, 500, 000 (4.660957144)


    T = 5 years

    N = tm = 5 (4) = 20

    I = j/m = 0.32/4 = 0.08

    First Option = ₱6,500,000

    Second Option = or ₱4,000,000

    Down payment and

    ₱4,200,000 in five (5) years

    You might also like