# Project 2

### Project 2

kp
##### kurt provido
kurt's Personal Gallery
##### Transcript
00:00
Collaboration Exercise #2
00:07
Question 1
00:07
What is the compound amount of P35,000 invested at 24% interest compounded monthly for 15 months?
00:11
Given
00:11
P= 35,000 j= 0.24 or 24% t= 15 months (1.3) m= 12
00:11
n=tm n=1.3x12 n=15.6
00:11
i= j/m i=0.24/12 i=0.02
00:19
Required: F = ?
00:27
Solution
00:30
F = P(1+i)ⁿ F = 35,000(1+0.02) F = P47,668.42
00:31
15.6
00:32
Answer: The compound amount of P35,000 invested at 24% interest compounded monthly for 15 months is P47,668.42.
00:40
Question 5 What is the effective rate equivalent to a nominal rate of 5% compounded semi-annually?
00:47
Given:
00:49
j = 0.05 or 5%                    i=j/m m = 2                                     i=0.05/2                                               i=0.025 Required: w = ?
01:00
Solution:
01:03
w=(1 + j/m) -1 w=(1+0.05/2)² -1 w= 0.0506 or 5.06%
01:04
m
01:06
Answer: The effective rate of 5.06% is equivalent to a nominal rate of 5% compounded semi-annually.
01:15
Thank  you!
01:16
Aryanna Dela Cruz
01:16
Kurt Provido
01:19