A civil servant deposits ₱50,000 into a government savings cooperative that pays 6% simple annual interest. What is the total accumulated amount after 3 years?
Answer and explanation
Correct answer: C. ₱59,000
- Step 1: Simple interest formula: I = P r t = 50,000 0.06 3 = ₱9,000. Step 2. Total amount = Principal + Interest = 50,000 + 9,000 = ₱59,000. *Answer: ₱59,000, adding the simple interest of ₱9,000 (₱50,000 0.06 3) to the principal. Why not the others:* ₱59,550.80 is compounded annually; ₱53,000 is 1 year.
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