nicky6051
Answered

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If you have PhP 5,000.00, which of the following investment alternatives would provide the greatest ending wealth for your one-year investment?



7/10 percent compounded annually



7/10 percent compounded semi-annually



72/100 percent simple interest



7/10 percent compounded quarterly


NO FILES AND CHAIN MESSAGE OR ELSE I'LL REPORT YOUR ACCOUNT. ​

Sagot :

Answer:

7/10 percent compounded quarterly

Explanation:

The formula for calculating future value:

FV = P (1 + r/m)^mn

m = number of compounding  

FV = Future value  

P = Present value  

R = interest rate  

N = number of years  

Simple interest = principal x time x interest rate

1. 5000 x (1.007) = 5035

2. 5000 x (1 + 0.007/2)^2 = 5035.06

5000 x (1 + 0.007/4)^4 = 5035.09

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