ACTIVITY 1Directions: Complete the table by solving using compound interest.If the maturity value is rolled out at 6% every 120 days for 2 years at the end of theperiod, it will accumulate an interest of:PeriodTermInterest I = PrtMaturity value A= P+ IExample 1P1,000.00P102,010.00120360240P1,030.30360360P1.050.01360480P108,285.67360600P1,093.693606.720P112,682.51360

The term is the time duration at which the investor has to pay its due amount. Interest is an…

Answered: Period Term Interest I= Prt Maturity…

Period Term Interest I= Prt Maturity Example 1 120 P1,000.00 P102,010.00 360 240 P1,030.30 360 360 P1.050.01 360 4 480 P108,285.67 360 600 P1,093.69

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

ACTIVITY 1
Directions: Complete the table by solving using compound interest.
If the maturity value is rolled out at 6% every 120 days for 2 years at the end of the
period, it will accumulate an interest of:
Period
Term
Interest I = Prt
Maturity value A= P+ I
Example 1
P1,000.00
P102,010.00
120
360
240
P1,030.30
360
360
P1.050.01
360
480
P108,285.67
360
600
P1,093.69
360
6.
720
P112,682.51
360

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