How much money should a student place in a time deposit in a bank that pays 1.1% compounded annually so that he will have Php 20

Question

Rom4ik [11]

3 years ago

10

How much money should a student place in a time deposit in a bank that pays 1.1% compounded annually so that he will have Php 20

0,000.00 after 6 yrs?

Mathematics

1 answer:

STatiana [176] · Answer 1 · 2022-05-06T10:44:08+03:00

STatiana [176]3 years ago

5 0

Let us say that:<span>
P = present value
F = future value
i = interest rate
n = period

P = F / [ (1 + i ) ^n ]
P = 200000 / [ (1 + 0.011) ^6 ]
P = 187293.65

<span>Therefore the student must put up Php 187,293.65</span></span>