Question 1173005: If P135,650 is the maturity value of a sum invested at 3.2% compounded semi-annually for 9 years and 6 months, find the present value and the compound interest earned.
Answer by ikleyn(52879)   (Show Source):
You can put this solution on YOUR website! .
If P135,650 is the maturity value of a sum invested at 3.2% compounded semi-annually for 9 years and 6 months,
find the present value and the compound interest earned.
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In this problem, the present value is THE SAME as the original deposited amount.
So, let X be the original deposited amount.
From the problem, you can write this equation
135000 =  =  .
From this equation, you find X =  = P99,851.21.
It is the starting value and, at the same time, is the present value.
The interest earned is the difference P135,000 - P99,851.21 = P35,148.79.
ANSWERS. The present value is P99,851.21.
The interest earned is P35,148.79.
Solved.
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