The document contains 5 math problems involving calculations of future and present worth of investments using simple and compound interest formulas. The problems ask the learner to calculate future values, present values, interest rates, and time periods given various rates of return, principal amounts, time periods and compounding frequencies. The document demonstrates how to apply compound interest formulas to calculate unknown financial values like future worth, present worth, interest rates and time periods.
The document contains 5 math problems involving calculations of future and present worth of investments using simple and compound interest formulas. The problems ask the learner to calculate future values, present values, interest rates, and time periods given various rates of return, principal amounts, time periods and compounding frequencies. The document demonstrates how to apply compound interest formulas to calculate unknown financial values like future worth, present worth, interest rates and time periods.
The document contains 5 math problems involving calculations of future and present worth of investments using simple and compound interest formulas. The problems ask the learner to calculate future values, present values, interest rates, and time periods given various rates of return, principal amounts, time periods and compounding frequencies. The document demonstrates how to apply compound interest formulas to calculate unknown financial values like future worth, present worth, interest rates and time periods.
The document contains 5 math problems involving calculations of future and present worth of investments using simple and compound interest formulas. The problems ask the learner to calculate future values, present values, interest rates, and time periods given various rates of return, principal amounts, time periods and compounding frequencies. The document demonstrates how to apply compound interest formulas to calculate unknown financial values like future worth, present worth, interest rates and time periods.
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Dimatulac, Aaron Joseph F.
Date: April 2020
GED102 – A7 Score: CO3, CW
Exercise 1.1 (Page 242)
Solve each problem completely.
1. How much will be the future worth of money after 12 months if the sum of P35,000 is invested today at a simple interest rate of 3% per month? F=P[1+ ( r ) (t ) ] F=35,000[ 1+0.03 ( 12 ) ] F=47,600 Answer: P47,600
2. A man expects to receive P125,000 in eight years. How much is that money worth now considering an interest rate of 12% compounded quarterly? n F=P ( 1+i ) j mt F=P 1+( ) m 0.12 4 (8 ) ( 125,000=P 1+ 4 ) P=48,542.13 Answer: P48,542.13
3. How long will it take the money to triple itself if invested at 9.5% compounded semi-annually?
F=3 P (1+i )n 0.095 n 3 P=P 1+( n 2 ) 3=( 1.0475 ) ln (3)=( n ) ln (1.0475) ln (3) n= ln (1.0475 ) n=23.67 Thus, n 23.67 t= = =11.84 yrs . m 2 Answer: 11.84 yrs.
4. By the conditions stated in a will, the sum of P2.5M is left to a son to be held in a trust fund by his guardian until it amounts to P4.5M. When will the son receive the money if the fund is invested at 10% compounded quarterly? n F=P ( 1+i ) mt j F=P 1+ ( ) m 4t 0.1 4,500,000=2,500,000 1+ 4t ( 4 ) 1.8=( 1.025 ) log (1.8)=log ( 1.025 )4 t log ( 1.8 )= ( 4 t ) log (1.025) 23.8041=4 t t=5.95 Answer: 5.95 yrs.
5. What is the effective rate corresponding to 18% compounded daily using 360 days in one year?
