A bank pays an annual interest rate of 3% compounded quarterly. If the initial deposit (or principal) is Php 50 000, find the balance after 5 years.
The balance of the investment after 5 years should be=58,059.21
every three months you should get
3% x 3months/12months = 9/12 = 3/4% interest Or 0.0075) since it is comp[ounded every 3 months (four times a year) you have 5 years or 20 interest periods
Then p(Principle) = p (1.0075)^20 = 50,000 (1.0075)^20 = 58,059.21
