3. If P = P85,500, and r = 1.25% compounded monthly for 1 year, find the compound interest. What is the first component that should be computed? What formula will be used? How much is the maturity value?

3. If P = P85,500, and r = 1.25% compounded monthly for 1 year, find the compound interest. What is the first component that should be computed? What formula will be used? How much is the maturity value?

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 12MC: (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest...

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Please answer 1-3 sub-units thank you!

3. If P = P85,500, and r = 1.25% compounded monthly for 1 year, find the compound interest.
What is the first component that should be computed?
What formula will be used?
How much is the maturity value?

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