Answered: You invested P150,000 in a bank that…

You invested P150,000 in a bank that pays an 13% interest converted monthly. If your account balance today amounts to P168,900, approximately how many months did you invest your money?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...

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Concept explainers

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.

Question

You invested P150,000 in a bank that pays an 13% interest converted monthly. If your account
balance today amounts to P168,900, approximately how many months did you invest your
money?
O 10 months
9 months
O 11 months
O 8 months

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