1.

Sa Ing invest P30,00 at 8% annual interest, leaving the money invested without
withdrawing any of the interest for 8 years. At the end of 8 years Sa withdrew the
accumulated amount of money.
Instruction:
A) compute the amount Sa would withdraw assuming the investment earns simple
interest.
Given:
P-P30,000
i-8%
n-8 years

I=Prt
I=(P30,000) (8%) (8)
I=P19,200

FV=P+1
FV=P30,000 + P19,200
FV=P49,200

B) compute the amount Sa would withdraw assuming the investment earns interest
compounded annually.

Given:
P-P30,000
i-8%
n-8 years

FV= PV (1 + I) n
FV=P30,000 (1+0.08)8
FV=P30,000 (1.85093021)
FV=P55,527.91

C) Compute the amount Sa would withdraw assuming the investment earns interest
compounded semi-annually.

Given:
P-P30,000
i-8%
n-8 years
m= (number of compounding periods per year) =2

Where i=r/m=mt
n=mt
n=(2)(8)
n=16

FV= PV (1 + I) n
FV= P30,000 (1 + 0.08) 16
2
FV= P56,189.44