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Jenilyn2410231989go
Answered

P20,000 is invested for 15 years at 5% compounded semi-annually.
A. Give the value of each variable using the formula A= P(1+i)^n where i = r/k and n = kt
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SOLUTION

P = 20 000

T = 15

K = 6 (semi annually)

r = 0.05

i = 0.05/6 = 5/600

n = 6(15) = 30

Now , Substituting the values to the Formula

[tex]A= P(1+i)^n \\ A= 20 \: 000(1+ {\frac{5}{600} })^{30} \\ A= 20 \: 000( \frac{600}{600} + \frac{5}{600} )^{30} \\ A= 20 \: 000( \frac{605}{600} )^{30} \\ A= 20 \: 000(1.282695963) \\ A= 25 \: 653.91927 \\ \boxed{A= 25 \: 653.92}[/tex]

ANSWER

  • The Future Amount is 25 653.92
  • The compounded amount is 5653.92

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