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March 28, 2017

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By the conditions of a will, the sum of P25,000 is left to a girl to be held in trust by her guardian until it amounts to 45,000. when will the girl receive the money if the fund is invested at 8% compounded quarterly?? please show the solution.. thank you:)

  • business - ,

    8%/4 = 2% per quarter

    so every three months multiply by 1.02

    25 * 1.02^n = 45

    1.02^n = 1.8

    n log 1.02 = log 1.8

    n = 29.68 quarters
    or 7.42 years

  • business - ,

    wooow..thanks:)

  • business - ,

    how you get 1.02

  • business - ,

    F=P*(1+i)^n --->formula
    1.02 is from (1+.02)
    since 8% compounded Quarterly..
    8%/4=0.02

  • business - ,

    7.42

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