FV = 15,500(1.06^2) = 17,415.80
interest = 17,415.80 - 15,500 = $1,915.80
2) with 3 months per quarter...n = 10 / 3 = 3.3333quarters
r = 0.15 / 4qtrs per year = 0.0375
FV = 10,000(1.0375^3.333) = $11,305.60
1.P930 x 2= P1860
2. Forgotten! I assume you would have to calculate for 9 months (3 quarters) as the last 1 month will not have any interest.
I used the right formulas but still got different answers from the answer key. Could you please show or explain your method and answer? Thanks.
1) Suppose you deposited P15,500 in a bank that pays an annual interest rate of 6%. How much interest would you earn in 2 years?
2) A man invests P10,000 in an account that pays 15% interest per year, compounded quarterly. What is the amount of money that he will have after 10months?
