Question

When 500 pesos is compounded monthly at 4% interest rate fo 3 years, what is the frequency of conversion?

Answer 1

The answer is "562.432"

Explanation:

Given:

`P= 500\\\\r= 4\%\\\\n= 3 \ years\\\\\text{frequency of conversion}\ (A)=?`

Using formula:

`\to A=P(1+r)^n`

`= 500(1+4\%)^3\\\\= 500(1+(4)/(100))^3\\\\= 500(1.04)^3\\\\=500 * 1.124864\\\\= 562.432`