Question

You invest $ 20,000 pesos at 10% with semi-annual capitalization. After 2 years, said investment is transferred to an account that pays 14% monthly capitalization. At the end of 5 years (in total), what is the amount of your investment?

Answer 1

Future Value Calculation after 2 years
Particulars	Amount
Cash Flow	20000.00
Int Rate	5.000%
Periods	4
Future Value = Cash Flow * ( 1 + r )^n
= 20000 ( 1 + 0.05) ^ 4
= 20000 ( 1.05 ^ 4)
= 20000 * 1.2155
= 24310.13

Future Value after 5 years

Particulars	Amount
Cash Flow	24310.13
Int Rate	1.167%
Periods	36
Future Value = Cash Flow * ( 1 + r )^n
= 24310.13 ( 1 + 0.0117) ^ 36
= 24310.13 ( 1.0117 ^ 36)
= 24310.13 * 1.5183
= 36909.24

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