document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1178092>Question 1178092</A>: <I><SPAN STYLE=\"word-break: break-all;\"> At what rate compounded quarterly will Php 14, 000 become Php 16, 500 for 3 years </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #807250 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=807250\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the formula of f = p * (1 + r) ^ n can be used to solve this.\r<BR>\n" );
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document.write( "f is the future value<BR>\n" );
document.write( "p is the present value<BR>\n" );
document.write( "r is the interest rate per time period.<BR>\n" );
document.write( "n is the number of time periods.\r<BR>\n" );
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document.write( "the formula becomes:<BR>\n" );
document.write( "16500 = 14000 * (1 + r) ^ 12\r<BR>\n" );
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document.write( "r is the interest rate per quarter.<BR>\n" );
document.write( "n is the number of quarters = 3 * 4 = 12.<BR>\n" );
document.write( "p is equal to 14000.<BR>\n" );
document.write( "f is equal to 16500.\r<BR>\n" );
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document.write( "divide both sides of the formula by 14000 to get:<BR>\n" );
document.write( "16500 / 14000 = (1 + r) ^ 12<BR>\n" );
document.write( "take the third root of both sides of the equation to get:<BR>\n" );
document.write( "(16500 / 14000) ^ (1/12) = 1 + r<BR>\n" );
document.write( "solve for 1 + r to get:<BR>\n" );
document.write( "1 + r = (16500 / 14000) ^ (1/12) = 1.013786085.<BR>\n" );
document.write( "subtract 1 from that to get:<BR>\n" );
document.write( "interest rate of .013786085 per quarter.<BR>\n" );
document.write( "multiply that by 4 to get:<BR>\n" );
document.write( "nominal interest rate per year = .05514434 per year.<BR>\n" );
document.write( "that's the same as 5.514434 per cent nominal interest rate per year.\r<BR>\n" );
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document.write( "you could also solve this by calculator as shown below:\r<BR>\n" );
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document.write( "inputs are;\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2021/040505.jpg\" >\r<BR>\n" );
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document.write( "output is:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2021/040506.jpg\" >\r<BR>\n" );
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document.write( "the result from the calculator is the percent interest rate per quarter.\r<BR>\n" );
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document.write( "multiply that by 4 to get nominal interest rate percent of 5.514432 per year.\r<BR>\n" );
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document.write( "the very slight difference between the manually calculated results and the financial calculator results is due to rounding of the intermediate results in the display of the calculator.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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