Sample Problems Future Value

Question 1

Principal: P 1,200,000
Rate: 9%
Period: 5 years

Using the simple interest method, look for the:
1. Future value of the investment
2. Annual interest
3. Total interest earned

Using the compound interest method, look for the:
4. Future value of the investment
5. Total interest earned
6. Interest earned on the 3rd year

Answer 1

1. 1,740,000
2. 108,000
3. 540,000
4. 1,846,800
5. 646,800
6. 128,400

Question 2

Principal: P 300,000
Rate: 12%
Period: 4 years

Using the simple interest method, look for the:
1. Future value of the investment
2. Annual interest
3. Total interest earned

Using the compound interest method, look for the:
4. Future value of the investment
5. Total interest earned
6. Interest earned on the 2nd year
7. Total interest earned after 2 years

Answer 2

1. 444,000
2. 36,000
3. 144,000
4. 472,200
5. 172,000
6. 40,200
7. 76,200

Question 3

Principal: P 800,000
Rate: 10%
Period: 5 years

Using the simple interest method, look for the:
1. Future value of the investment
2. Annual interest
3. Total interest earned

Using the compound interest method, look for the:
4. Future value of the investment
5. Total interest earned
6. Total amount of interest earned in the last two years combined.

Answer 3

1. 1,200,000
2. 80,000
3. 400,000
4. 1,288,800
5. 488,800
6. 224,000

Question 4

Principal: P 1,500,000
Rate: 8%
Period: 4 years

Using the simple interest method, look for the:
1. Future value of the investment
2. Annual interest
3. Total interest earned
Using the compound interest method, look for the:
4. Future value of the investment
5. Total interest earned
6. Total amount of interest earned over the entire investment period.

Question 5

Carlos has decided to invest ₱1,000,000 in a savings account that offers an annual interest rate of 7%. He plans to keep his investment for a period of 5 years. Carlos is curious about how his money will grow over time and wants to explore both simple interest and compound interest methods.

1. Using the simple interest method, Carlos wants to calculate the future value of his investment after 5 years, determine the amount of interest he will earn each year, and find out the total interest earned by the end of the period.
2. After calculating the simple interest, Carlos shifts his focus to the compound interest method. He would like to find out the future value of his investment with compound interest, the total interest earned over the 5 years, and the total amount of interest earned in the last three years combined.

Can you help Carlos with these calculations?