Mr. Pasia and his family celebrated his son's 21st birthday on July 7, 2025. He gave his son two million pesos as a birthday present. Right after his son received the said amount, a bank offers two choices: 10% interest compounded quarterly, or 20% exact simple interest. b. a. Determine the amount he will receive on July 7, 2030 if he chooses the first option. Determine the amount he will receive on July 7, 2030 if he chooses the second option. Determine the required compounding interest so that he will receive the same amount as that of 20% exact simple interest. C.
Mr. Pasia and his family celebrated his son's 21st birthday on July 7, 2025. He gave his son two million pesos as a birthday present. Right after his son received the said amount, a bank offers two choices: 10% interest compounded quarterly, or 20% exact simple interest. b. a. Determine the amount he will receive on July 7, 2030 if he chooses the first option. Determine the amount he will receive on July 7, 2030 if he chooses the second option. Determine the required compounding interest so that he will receive the same amount as that of 20% exact simple interest. C.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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kindly show and tell what is the formula thank you
Transcribed Image Text:2. Mr. Pasia and his family celebrated his son's 21st birthday on July 7, 2025. He gave his son two
million pesos as a birthday present. Right after his son received the said amount, a bank offers
two choices: 10% interest compounded quarterly, or 20% exact simple interest.
a. Determine the amount he will receive on July 7, 2030 if he chooses the first option.
b. Determine the amount he will receive on July 7, 2030 if he chooses the second option.
Determine the required compounding interest so that he will receive the same amount
as that of 20% exact simple interest.
C.
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