FDNBUSM Moovly movie (Collaboration Exercise 2) by Pair #6

AL

- 00:00
- Collaborative Exercise 2
- 00:02
- Annika Lavarias & Missy Nacario Pair #6
- 00:07
- 2.What is the (a) present value and (b) compound interest earned for 3 years and 9 months of P84,500 that is compounded quarterly at 20% interest?
- 00:12
- GIVEN:
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- F = ₱84,500 j = 20% or 0.20 m = 4 t = 3 years and 9 months = 3 9/12 or 3.75 years P = ?; Ic = ?
- 00:18
- Solution:
- 00:19
- i = j/m = 0.20/4 = 0.05 n = tm = 3.75(4) = 15
- 00:23
- P = F (1 + i)
- 00:24
- -n
- 00:25
- P = 84,500 (1 + 0.05)
- 00:26
- -15
- 00:28
- P = ₱ 40,645.9448
- 00:32
- Ic = F - P Ic = 84,500 - 40,645.9448 Ic = ₱ 43,854.0552
- 00:38
- The present value is ₱40,645.9448 while the compound interest earned is ₱43,854.0552.
- 00:44
- 4. How long will it take P55,000 to accumulate to P185,000 if it is invested at 6% interest compounded quarterly?
- 00:49
- GIVEN:
- 00:50
- P = ₱55,000 F = ₱185,000 j = 6% or 0.06 m = 4 t= ?
- 00:55
- Solution:
- 00:56
- i = j/m = 0.06/4 = 0.015
- 01:00
- t = log (F/P)
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- m log (1 + i)
- 01:05
- t = log (185,000/55,000)
- 01:08
- 4 log (1 + 0.015)
- 01:10
- t = 20.3682 or 20.37 years
- 01:16
- It will take 20.37 years to accumulate ₱55,000 to ₱185,000 at 6% compounded quarterly.
- 01:21
- THANKS FOR WATCHING!