Homework on Compound Interest:

General Instructions: Answer as required. People will be called at random to solve on the
board during our October 14 meeting.

1. Find the present value and the compound interest for three (3) years and 9 months
at 20.0% compounded quarterly of P 84,500.00

2. Find the compound amount and interest if P 1,500.00 is invested at 6.0%

compounded for 2 years:
2.1 monthly
2.2 quarterly
2.3 every six months
2.4 annually

3. If money is invested a 7.0% compounded monthly, find the present value of

P 64,500.00 which is due after two (2) years and 4 months from today.

Advance Problems

1. A P 65,000.00 invested earned an interest of P 3,600.00 in years. At what nominal

rate compounded annually was the money invested?

2. Find the time of the investment if P 1,200.00 accumulates to P 5,600.00 invested

at 5.0% semi-annually.

3. Find the effective rate of 5.0% compounded quarterly.

4. What nominal rate compounded quarterly will yield an effective rate of 6.0%?

5. If a certain principal doubles itself in 16 years, find the interest rate compounded
quarterly at which it is invested.

6. How long will it take for P 24,000.00 to amount to P 53,400.00 if it is invested

12.0% converted monthly?

7. Find the nominal rate which will yield an effective rate of 8.0% if interest is
compounded:
7.1 annually
7.2 semi-annually
7.3 quarterly
7.4 monthly