Compounding More Than Once a year

It is the number of conversion periods in one year

• Conversion or Interest Period

• Frequency of Conversion

• Rate of Interest Period

• Total Number of Conversion

The annual rate of interest is called _________

• Rate

• Rate of Interest per Period

• Nominal Rate

• Interest

The time between successive conversions of interest

• Frequency of Conversion

• Rate of Interest per Conversion Period

• Nominal Rat

• Conversion or Interest Period

The rate of interest per conversion period is denoted by the variable

• j

• n

• m

• $i^m$

The formula in finding the maturity value is

• $F=P\left(1+\frac{i^m}{m}\right)^{tm}$

• $F=P\left(1+j\right)^1$

• $F=P\left(1+r\right)^t$

• None of these

The total number of conversion period is denoted by the variable

• j

• n

• m

• t

Given that the interest is compounded monthly the frequency of conversion is

• 2

• 4

• 12

• 365

What present value, compounded quarterly at 6%, will amount to P59,780.91 in 3 years?

• 40,000

• 50,000

• 60,000

• 70,000

Alet borrowed P15,000 payable interest that is compounded semi-annually at 9%. How much must she pay after 3 years?

• 19,433.90

• 19,533.89

• 19,433.89

• 19,533.90

Find the compound amount due in 8 years if P200,000 is invested at 12% compounded monthly.

• 519,854.58

• 519,854.59

• 519,864.58

• 519,864.59

Tags

CCSS.HSA.CED.A.1

CCSS.HSA.SSE.A.1

CCSS.HSA.SSE.B.4

CCSS.HSF.BF.A.1

CCSS.HSF.LE.A.1

CCSS.HSF.LE.A.2