A transport company in the Philippines borrows 60,000 Philippine Pesos (PHP) at an interest rate of 6% per year. After 3 years, assuming they have paid nothing back, what it the value of Accrued Amount (to the nearest PHP)?
A) PHP 70,569
B) PHP 70,951
C) PHP 71,461
D) PHP 71,989

Question

Quizplus · Accepted Answer

The Accrued Amount can be calculated using the formula for compound interest: A = P(1 + r/n)^(nt). Here, P = 60,000, r = 0.06, n = 1, and t = 3. Plugging in these values, A = 60,000(1 + 0.06)^3 = 71,461.

A Transport Company in the Philippines Borrows 60,000 Philippine Pesos