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A Senior High School student plans to invest in a bank since he knew that his family struggles financially. He thought that if he will not prepare for the future, it will be hard for him to continue to study at the university. This decision is very wise for a student like him. It suggests that even as early as Grade 7, students should have the urge and initiative to save for the future. His initial amount for his savings is ₱5,500.00. Help him to decide to save his money with the formula A = P (1 + r) n and by answering the questions that follow:
a. A bank offers 12% compounded annually, predict the balance after 5 years.
b. If he would like to have ₱20,000 in the future how long will it take him to save with the same amount of initial investment and the same interest rate?
Sagot :
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