Math Problem Statement

The query submitted by the user involves calculating the accumulated value of an investment over 10 years with varying interest rates, calculating simple interest and compound interest for different time periods, and solving for the effective annual rate based on given financial data.

Solution

To solve these problems, we can use different compound and simple interest formulas. Let's address each question:

  1. Accumulated Value of ₱10,000:

    • Years 1-2: 7%7\% compounded annually. A1=10000×(1+0.07)2A_1 = 10000 \times (1 + 0.07)^2
    • Years 3-4: 8%8\% compounded quarterly. A2=A1×(1+0.084)4×2A_2 = A_1 \times \left(1 + \frac{0.08}{4}\right)^{4 \times 2}
    • Years 5-7: 6%6\% compounded monthly. A3=A2×(1+0.0612)12×3A_3 = A_2 \times \left(1 + \frac{0.06}{12}\right)^{12 \times 3}
    • Years 8-10: 10%10\% compounded semi-annually. A4=A3×(1+0.102)2×3A_4 = A_3 \times \left(1 + \frac{0.10}{2}\right)^{2 \times 3}
  2. Simple Interest for Peter:

    • Calculate how much he will have with simple interest from December 1, 2022, to June 1, 2025.
    • Duration = 2 years + 6 months = 2.5 years. A=1000000×(1+0.06×2.5)A = 1000000 \times (1 + 0.06 \times 2.5)
    • Calculate how much time in years: 2.5 years=2+6122.5 \text{ years} = 2 + \frac{6}{12}.

    For compound interest: A=1000000×(1+r4)4×2.5A = 1000000 \times \left(1 + \frac{r}{4}\right)^{4 \times 2.5} Solve for rr using equality of simple and compound interest accumulations.

  3. Effective Rate for Mr. Chan:

    • Given: principal P=45500P = 45500, amount A=50543A = 50543, time = 5.5 years. A=P×(1+r12)12×5.5A = P \times \left(1 + \frac{r}{12}\right)^{12 \times 5.5} Solve for rr, and then calculate the effective annual rate (EAR): EAR=(1+r12)121\text{EAR} = \left(1 + \frac{r}{12}\right)^{12} - 1

Calculations for exact numerical answers need additional processing.

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Math Problem Analysis

Mathematical Concepts

Compound Interest
Simple Interest
Effective Annual Rate
Financial Calculations

Formulas

A = P * (1 + r/n)^(nt)
A = P * (1 + r * t)
A = P * (1 + r/4)^(4 * t)
EAR = (1 + r/12)^12 - 1

Theorems

Compound Interest Theorem
Simple Interest Theorem

Suitable Grade Level

Grades 11-12