act 4.2.docx - Phia Vhianna Reign S. Ramirez ABM 12-A...

Phia Vhianna Reign S. Ramirez
ABM 12-A
Activity 4.2 Future Value and Present Value
A. DIRECTION: Complete the table to find the compound amount of P 50,000
invested at 10% interest. Show your solutions.
Solution:
1. Compounded Annually: FV = PV (1+i)
FV = 50,000 (1+0.1) = 55,000
50,000 (1+0.1) = 80,525.50
50,000 (1+0.1) = 129,687.12
2. Compounded Semi-Annually: FV = PV (1+i/2)
FV = 50,000 (1+0.1/2) = 55,125
50,000 (1+0.1/2) = 81,444.73
50,000 (1+0.1/2) = 132,664.89
3. Compounded Quarterly: FV = PV (1+i/4)
FV = 50,000 (1+0.1/4) = 55,190.64
50,000 (1+0.1/4) = 81,930.82
50,000 (1+0.1/4) = 134,253.19
4. Compounded Monthly : FV = PV (1+i/12)
FV = 50,000 (1+0.1/12) = 55,235.65
50,000 (1+0.1/12) = 82,265.45
50,000 (1+0.1/12) = 135,352.07
5. Compounded Daily: FV = PV (1+i/365)
FV = 50,000 (1+0.1/360) = 55,257.78
50,000 (1+0.1/360) = 82,430.34
50,000 (1+0.1/360) = 135,895.22
n
1
5
10
2xn
2x1
2x5
2x10
4xn
4x1
4x5
4x10
12xn
12x1
12x5
12x10
365xn
360x1
360x5
360x10
In 1 year In 5 years In 10 years
1.
Compounded annually 55,000 80,525.50 129,687.12
2.