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

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Phia Vhianna Reign S. RamirezABM 12-AActivity 4.2 Future Value and Present ValueA. DIRECTION:Complete the table to find the compound amount of P 50,000invested at 10% interest. Show your solutions.Solution:1. Compounded Annually: FV = PV (1+i)FV = 50,000 (1+0.1)= 55,00050,000 (1+0.1)= 80,525.5050,000 (1+0.1)= 129,687.122. Compounded Semi-Annually: FV = PV (1+i/2)FV = 50,000 (1+0.1/2)= 55,12550,000 (1+0.1/2)= 81,444.7350,000 (1+0.1/2)= 132,664.893. Compounded Quarterly: FV = PV (1+i/4)FV = 50,000 (1+0.1/4)= 55,190.6450,000 (1+0.1/4)= 81,930.8250,000 (1+0.1/4)= 134,253.194. Compounded Monthly:FV = PV (1+i/12)FV = 50,000 (1+0.1/12)= 55,235.6550,000 (1+0.1/12)= 82,265.4550,000 (1+0.1/12)= 135,352.075. Compounded Daily: FV = PV (1+i/365)FV = 50,000 (1+0.1/360)= 55,257.7850,000 (1+0.1/360)= 82,430.3450,000 (1+0.1/360)= 135,895.22n15102xn2x12x52x104xn4x14x54x1012xn12x112x512x10365xn360x1360x5360x10In 1 yearIn 5 yearsIn 10 years1.Compounded annually55,00080,525.50129,687.122.
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