Scribd Logo
Upload

Welcome to Scribd!

  • 8 views

    COMPOUND INTEREST and Activity

    Uploaded by

    mamanglagario
    Compound interest is interest calculated on both the initial principal amount and on accumulated interest from previous periods, resulting in interest on interest. The document provides an example calculation of compound interest over 6 years on a $50,000 loan at 12% interest compounded annually. It also asks the reader to solve two other compound interest word problems: calculating the repayment amount on a $125,000 loan at 8% interest compounded quarterly, and determining the initial investment needed to have $50,800 in 6.5 years at 5.4% interest compounded semi-annually.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    COMPOUND INTEREST and Activity

    Uploaded by

    mamanglagario
    8 views4 pages
    Compound interest is interest calculated on both the initial principal amount and on accumulated interest from previous periods, resulting in interest on interest. The document provides an example calculation of compound interest over 6 years on a $50,000 loan at 12% interest compounded annually. It also asks the reader to solve two other compound interest word problems: calculating the repayment amount on a $125,000 loan at 8% interest compounded quarterly, and determining the initial investment needed to have $50,800 in 6.5 years at 5.4% interest compounded semi-annually.

    Original Description:

    General Mathematics

    Original Title

    COMPOUND-INTEREST-and-Activity

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Compound interest is interest calculated on both the initial principal amount and on accumulated interest from previous periods, resulting in interest on interest. The document provides an example calculation of compound interest over 6 years on a $50,000 loan at 12% interest compounded annually. It also asks the reader to solve two other compound interest word problems: calculating the repayment amount on a $125,000 loan at 8% interest compounded quarterly, and determining the initial investment needed to have $50,800 in 6.5 years at 5.4% interest compounded semi-annually.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    8 views4 pages

    COMPOUND INTEREST and Activity

    Uploaded by

    mamanglagario
    Compound interest is interest calculated on both the initial principal amount and on accumulated interest from previous periods, resulting in interest on interest. The document provides an example calculation of compound interest over 6 years on a $50,000 loan at 12% interest compounded annually. It also asks the reader to solve two other compound interest word problems: calculating the repayment amount on a $125,000 loan at 8% interest compounded quarterly, and determining the initial investment needed to have $50,800 in 6.5 years at 5.4% interest compounded semi-annually.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 4

    COMPOUND INTEREST

    Compound Interest is the interest on savings calculated on both the initial


    principal and the accumulated interest from previous periods. “Interest on
    interest”.
    Nov. 20, 2023
    Activity No. __
    Directions: Answer the following problems involving compound interest.
    Show your solutions. (5 points each)
    1. Joseph borrows 50,000.00 and promise to pay the principal and
    interest at 12% compounded annually. How much he repays after 6
    years?
    2. A loan 125,000.00 at 8% compounded quarterly was paid back with
    an amount of 176,000.00 at the end of the period. For how long was
    the money borrowed?
    3. How much must be invested today in a savings account in order to
    have 50,800.00 in 6 years and 9 months if money earns 5.4%
    compounded semi-annually?

    You might also like