MATHEMATICS OF INVESTMENT

COMPOUND INTEREST
ASSIGNMENT 1
INSTRUCTION: Answer the following problem and show your solution. Write your answer in 1 whole sheet of paper.

Problem 1
Find the accumulated value of 20, 500 at the end of 10 years and 7 months at 12% converted monthly.

Problem 2
On January 4, 2009, Lhen borrowed 24,000 and promised to pay the principal and interest at 12% compounded semi-
annually on July 4, 2014. How much will she repay?

Problem 3
What sum is needed to accumulate 400,000 in 8 years if the interest is 16 ¾% compounded quarterly

Problem 4
Find the compound amount of 8,000 at the end of 5 years and 7 months if invested at 12.3% compounded quarterly.

Problem 5
At what rate compounded monthly is Mr. Reyes paying the interest if he borrows 16,500 and agrees to pay 20,000 for
the debt 2 years and 3 months from now?

Problem 6
How long will it take 48,000 to grow to 78,000 if it is invested at 12% converted monthly?