Compound Interest

​Compound Interest - interest that is computed on the principal and also on the accumulated past interests.

​Annually - means once a year (1 period)

​Semi-Annually - means twice a year (2 periods)

​Monthly - means every month in a year (12 periods)

​Quarterly - means every three months or 4 times a year (4 periods)

​Daily - means everyday in a year (365 periods)

​Mrs. Santos invested Php 100,000.00 in a company that offers 6% interest compounded annually. How much will this investment be worth at the end of each year for the next five years?

Find the maturity value or final amount and the compound interest if

P = 10,000 is compounded annually at an interest rate of 2% in 5 years.

Mr. Ybanez aims to have his investment grow to P500,000 in 4 years. How much should he invest in an account that pays 5% compounded annually?

Mr. Isaac Nathaniel is thinking of investing an amount of P30,000 in a time deposit for 15 years. Find the future value if the investment offers 8.5% compounded quarterly.