Engineering Board Exam Reviewer · Compound Interest · easy

How much must be deposited now at 7.5% compounded semiannually to have P500,000 in 7 years?

  1. P301,377.45
  2. P298,632.13
  3. P237,500
  4. P386,414.37

Answer

B. P298,632.13

Solution

i=0.075/2=0.0375 and n=14. P= 500,000(1.0375)14=P298,632.13.

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