Collaborative Exercise 2

Collaborative Exercise 2

Published on 3 November 2021

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

AL
Transcript
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:
00:13
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)
01:03
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!