Respuesta :
Answer:
The compound amount is ₱141,851.91
The compound interest is ₱41,851.91
Explanations:
The formula for calculating the compound interest is expressed according to the formula:
[tex]\text{ A = P(1 + }\frac{r}{n}\text{)}^{nt}[/tex]P is the principal (money invested)
r is the rate (in decimal)
t is the time (in years)
n is the compounding time
Given the following parameters
P = ₱100,000
r = 12% = 0.12
t = 3 years
n = 2(semi-annually)
Substitute the given parameters into the formula
[tex]\begin{gathered} \text{ A = 100,000}(1+\frac{0.12}{2})^{2(3)}^{} \\ \text{ A = 100,000(1+}0.06\text{)}^6 \\ \text{ A = 100,000(1.06)}^6 \\ \text{ A = 100,000(}1.4185\text{)} \\ \text{ A = }₱141,851.91 \end{gathered}[/tex]This shows that the compound amount is ₱141,851.91
Get the compound interest:
Compound interest = Compound amount - Principal
Compound interest = 141,851.91 - 100,000
Compound interest = ₱41,851.91
Hence the compound interest of Aaron’s investment is ₱41,851.91
