Question

When 500 pesos is compounded monthly at 4% interest rate fo 3 years, what is the frequency of conversion?

Answer 1

Answer:

The answer is "562.432"

Step-by-step explanation:

Given:

$P= 500\\\\r= 4\%\\\\n= 3 \ years\\\\\text{frequency of conversion}\ (A)=?$

Using formula:

$\to A=P(1+r)^n$

       $= 500(1+4\%)^3\\\\= 500(1+\frac{4}{100})^3\\\\= 500(1.04)^3\\\\=500 \times 1.124864\\\\= 562.432$