Question

1. Jeffrey deposited P150 in the bank now and plans to withdraw P100 next year. What will be the amount of money left in the bank after 10 years from his withdrawal? Effective annual interest is 10%

2.  P2000 was deposited 20 years ago at an interest rate of 8% compounded semi-annually. How much is the sum now?

3. 500 years ago, Rajah Salayog deposited Php 0.01 with an interest rate of 5% per annum. Now the bank discovered that you are the only left in the clan and entitled to receive the money. How much is it?

Answer 1

1. Amount deposited P 150.

Interest rate = 10%

After a year amount = 150 × 1.1 = 165

You withdraw P 100, amount left in account=165-100= P 65

Amount in bank account after 10 years will be

Amount in account after 10 years = P 168.59

2. Amount deposited = P 2,000

Interest rate = 8% compounded semi-annually.

Time = 20 years

m = 2

The amount in the account = P 9,602.04

3. Amount = P 0.01

Time = 500 years

Interest rate = 5%

The amount in the account = P 393,232,618

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