Question

Alishas parents deposited in her bank account PhP 25 O00 00 at an interest at 3.75% compounded yearly on her first birthday and did not withdraw any amount from the account how much money alisha has on her birthday

Answer 1

Answer:

Php 2593750.00

Step-by-step explanation:

The formula for the amount gotten from a compound interest is given as

A = P(1 + r/n)^nt

Where

A = Amount after t years

P = Initial amount saved or invested = PhP 2500000

R = 3.75

n = Compounding frequency = yearly = 1

t = Time in years = 1

First, convert R percent to r a decimal

r = R/100

r = 3.75%/100

r = 0.0375 per year,

Then, solve our equation for A

A = P(1 + r/n)^nt

A = 2500000.00(1 + 0.0375/1)^(1)(1)

A = Php 2593750.00

The amount Alisha has on her birthday is Php 2593750.00