Compounding Interest and Present Value

When an amount is compounded quarterly its interest is calculated

every _ months.

Mang Kanor invested PhP 50,000 in the bank. He wants to know how much will be his total money in 5 years if the bank is offering a 7% compounding interest annually.

If you compound PhP 10,267.00 for 5 years at 6% quarterly, how many number of periods will there be?

Compute for the number of periods.

Answer explanation

N = 5 years x 4 (quarterly)

N = 20 periods

The value of a current asset at a future date based on an assumed rate of growth.

• Maturity Value

• Future Value

• Interest

• Present Value

How much would you have to deposit today to have Php 10,000 in 5 years at 6% interested discounted quarterly?

• Number period

• Rate

• Present Value

• Comounding Interest