document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1186537>Question 1186537</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A bank earns 3% interest per annum compounded monthly for an initial savings deposit of 100,000 pesos. Find the net value of the deposit after 3 quarters if the earning is subjected to a 21% tax.<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #849432 by </B><A HREF=/tutors/aboutme.mpl?userid=CPhill><B>CPhill(1959)</B></A><img src=\"/images/stars/stars-12.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=CPhill><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=CPhill><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=849432\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Here's how to calculate the net value of the deposit:\r<BR>\n" );
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document.write( "1. **Calculate the interest rate per month:**<BR>\n" );
document.write( "   The annual interest rate is 3%, so the monthly interest rate is 3% / 12 = 0.25% or 0.0025 as a decimal.\r<BR>\n" );
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document.write( "2. **Calculate the number of months in 3 quarters:**<BR>\n" );
document.write( "   There are 3 months in a quarter, so 3 quarters is equal to 3 * 3 = 9 months.\r<BR>\n" );
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document.write( "3. **Calculate the future value of the deposit before tax:**<BR>\n" );
document.write( "   We use the formula for compound interest:<BR>\n" );
document.write( "   Future Value = Principal * (1 + interest rate)^number of periods<BR>\n" );
document.write( "   Future Value = 100,000 * (1 + 0.0025)^9<BR>\n" );
document.write( "   Future Value = 100,000 * (1.0025)^9<BR>\n" );
document.write( "   Future Value ≈ 100,000 * 1.0226<BR>\n" );
document.write( "   Future Value ≈ 102,260 pesos\r<BR>\n" );
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document.write( "4. **Calculate the tax amount:**<BR>\n" );
document.write( "   The tax rate is 21%, so the tax amount is:<BR>\n" );
document.write( "   Tax = Future Value * tax rate<BR>\n" );
document.write( "   Tax = 102,260 * 0.21<BR>\n" );
document.write( "   Tax ≈ 21,474.60 pesos\r<BR>\n" );
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document.write( "5. **Calculate the net value after tax:**<BR>\n" );
document.write( "   Net Value = Future Value - Tax<BR>\n" );
document.write( "   Net Value = 102,260 - 21,474.60<BR>\n" );
document.write( "   Net Value ≈ 80,785.40 pesos\r<BR>\n" );
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document.write( "Therefore, the net value of the deposit after 3 quarters, after the 21% tax is applied, is approximately $\boxed{80,785.40}$ pesos.<BR>\n" );
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