ANSWER:
The principal and interest, with compound interest on a principal of 70,000 pesos at a 6% per year, compounded twice over 7 years is 105,881.28 Pesos
STEP-BY-STEP EXPLNATION
1st Step: Use the equation and write down all the numbers given.
The formula for compound interest is
[tex]A=P(1+r/n)^{nt}[/tex]
P = 70,000 pesos
r = 6%
n = 2
t = 7 years
2nd Step: Substitute the given values to the formula.
[tex]A = 70,000(1+0.06/2)^{(2)(7)}[/tex]
[tex]A = 70,000(1+0.03)^{14}[/tex]
[tex]A = 70,000(1.03)^{14}[/tex]
[tex]A = 70,000(1.51258972)[/tex]
A = 105,881.28 Pesos
