SOLUTION: A book pays annual interest rate of 3% compounded quantity.if the initial deposit (Or principle) is php 50,000 ,find the balance after 5 years. nt

Question 1021158: A book pays annual interest rate of 3% compounded quantity.if the initial deposit
(Or principle) is php 50,000 ,find the balance after 5 years.
nt
A=p. (1+r over n)
A=final amount
P= principal amount
r=annual nominal interest rate (as decimal)
n=number of times the interest is compound per year
t=number of years
Answer by Cromlix(4381) (Show Source): You can put this solution on YOUR website!
Hi there,
First of all I assume when you have 'compounded quantity'
you actually mean 'compounded quarterly' i.e 4 times per year.
A = P (1 + r/n) ^ nt:
A = 50,000 (1 + 0.03/20)^20 x 5
A = 50,000 (1 + 0.03/20)^100
A = php 58085.18
Hope this helps :-)
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