Math Problem Statement
Solution
Let's analyze and solve the exercises step-by-step.
Part A: Completing the Compound Interest Table
The table requires you to find unknown variables using the compound interest formula: where:
- = Maturity Value (Future Value),
- = Principal,
- = Rate of interest per period,
- = Number of times interest is compounded per year,
- = Time in years.
Table Analysis
- Row 1: Known values are , , years. Use the formula to find the Maturity Value .
- Row 2: Known values are , , years and 9 months. Convert 9 months to years (0.75 years) and solve for .
- Row 3: Given , , and years. Find using the compound interest formula.
- Row 4: The Maturity Value is 25,000, , and years. Use the formula to solve for , the principal.
- Row 5: Given , years and 6 months (4.5 years), and Maturity Value . Solve for the principal .
I can calculate these if you'd like.
Part B: Compound Interest Word Problems
Problem Breakdown
- Problem 11: Find how much Peter will owe after 2 years on a P100,000 loan at 8% compounded annually.
- Problem 12: Calculate the interest earned on a P450,000 deposit at 5.5% compounded annually for 4 years.
- Problem 13: Determine the investment amount needed to reach P250,000 in 5 years with a 12% compound interest rate.
- Problem 14: Calculate the initial investment required to achieve P150,000 in 2 years at 10.5% interest compounded annually.
- Problem 15: Find the amount that a student should deposit at 2% compounded annually to have P100,000 after 12 years.
Each of these problems can be solved using the compound interest formula or a variation, depending on the unknown variable.
Would you like me to calculate each value or provide guidance on specific problems?
Additional Questions
- How does the compounding frequency (e.g., annually, semi-annually) impact the maturity value in compound interest?
- If the interest rate increases, how does it affect the required principal to reach a certain maturity value within a fixed time frame?
- How can we adjust the compound interest formula to account for different compounding intervals (e.g., quarterly)?
- What is the difference in outcomes between simple interest and compound interest for the same principal, rate, and time?
- How does a partial year (e.g., 9 months) affect the calculation of time in compound interest problems?
Tip
Always convert the time into a consistent unit (years) when solving compound interest problems, especially when dealing with mixed months and years.
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Math Problem Analysis
Mathematical Concepts
Compound Interest
Algebra
Exponential Growth
Formulas
Compound Interest Formula: A = P(1 + r/n)^(nt)
Theorems
-
Suitable Grade Level
Grades 10-12
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