The amount of money accumulated is Php 680,093.398
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Step-by-step explanation:
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Given:
P = Php 500,000
r = 3.1 % or 3.1/100 = 0.031
t = 10 years
n = 2
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Required:
Future value
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Equation:
[tex]FV\:=\:P{(1\:+\:\frac{r}{n})}^{nt}[/tex]
where:
FV - Future value
P - Principal
r - interest rate
n - compounding periods per year
t - years
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Solution:
[tex]FV\:=\:Php\:500,000{(1\:+\:\frac{0.031}{2})}^{(2)(10)}[/tex]
[tex]FV\:=\:Php\:500,000{(1\:+\:0.0155)}^{20}[/tex]
[tex]FV\:=\:Php\:500,000{(1.0155)}^{20}[/tex]
[tex]FV\:=\:Php\:680,093.398[/tex]
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Answer:
The amount of money accumulated is Php 680,093.398
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