Term 3 · Week 1 · Compound Interest

Standard problem

Standard

₱50,000 is invested at 8% compounded quarterly for 3 years. Find the maturity value.

Show step-by-step solution

Answer: 63412.09 ₱

Periodic rate $i = 0.08 \div 4 = 0.02$ ; number of periods $n = 3 \times 4 = 12$ .
$F = 50{,}000 \times 1.02^{12} \approx 50{,}000 \times 1.268242 = 63{,}412.09$ .

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gm11.t3.w1.c1
Solve problems involving compound interest, including maturity value, future value, nominal rates, and number of terms.