Interest, Equivalence, and Compound Growth - Worked Examples

Example 1 — Find simple interest on PHP 200,000 at 6% per year for 3 years.

Step-by-Step Solution

0 of 2 Steps Completed
1

Example 2 — Find the compound future worth of PHP 200,000 at 6% per year for 3 years.

Step-by-Step Solution

0 of 2 Steps Completed
1

Example 3 — Discount PHP 1,000,000 due in 5 years at 8% per year.

Step-by-Step Solution

0 of 2 Steps Completed
1

Example 4 — Determine the effective annual rate that grows PHP 500,000 to PHP 650,000 in 4 years.

Step-by-Step Solution

0 of 2 Steps Completed
1

Example 5 — How long does money take to double at 9% effective per year?

Step-by-Step Solution

0 of 2 Steps Completed
1

Example 6 — Move PHP 400,000 at year 2 to an equivalent amount at year 7 using 7% per year.

Step-by-Step Solution

0 of 2 Steps Completed
1

Example 7 — Find year-3 equivalent value of PHP 250,000 now and PHP 300,000 at year 6 using 10% per year.

Step-by-Step Solution

0 of 3 Steps Completed
1

Example 8 — A nominal 12% annual rate compounded monthly is used with monthly cash flows. What working rate applies?

Step-by-Step Solution

0 of 2 Steps Completed
1

Example 9 — Verify inverse factors for 10 years at 8%.

Step-by-Step Solution

0 of 3 Steps Completed
1

Example 10 — Compare two payment dates: PHP 900,000 today versus PHP 1,200,000 after 4 years at 7% per year.

Step-by-Step Solution

0 of 2 Steps Completed
1