FDNBUSM 02 · Compound Interest and Equivalent Rates
Conventions
Independent original practice cases. Amounts are Philippine pesos (PHP); enter numeric answers without currency symbols. Use the stated interest and payment timing. j is a nominal annual rate, i an effective payment-period rate, n the number of payments, and t years. Payment and compounding periods coincide unless stated otherwise. The factors are a(i,n) = [1 − (1 + i)^−n]/i and s(i,n) = [(1 + i)^n − 1]/i; at i = 0 both equal n. Keep full calculator precision and round money to 2 decimals only at the end; numeric money tolerance is PHP 0.02. Percentage answers are in percent, not decimal form. Report percentage and fractional-period/year answers to at least four decimal places unless exact; whole payment-count answers remain integers. Ignore taxes, fees and rounding of actual bank installments unless explicitly given. The Week 8 syllabus lists Annuities and Sinking Funds for Quiz 2; an exact calendar date was not verified.
Questions
01Find compound interest, not maturity value, on PHP 120,000 at 6% nominal compounded monthly for 30 months.
02A future PHP 200,000 payment is due after 12 quarters. Discount at 8% nominal compounded quarterly. Complete PV in PHP.
| Item | Value |
|---|---|
| Future payment (PHP) | 200000 |
| Nominal annual rate | 8% |
| Compounding | Quarterly |
| Quarters until payment | 12 |
| Present value (PHP) | ? |