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March 5th, 2015, 11:18 PM   #1
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[ASK] Compound Interest

35. In the beginning of each month Andika will get 2.000.000,00 IDR scholarship from the government. The scholarship will be received via bank account for 6 month with 2.5% compound interest per month. The amount of scholarship about to be received by Andika in the beginning of the first month is .... (Indonesian National Exam of Vocational High School Academic Year 2012/2013)
A. 9.291.600,00 IDR
B. 11.061.200,00 IDR
C. 11.291.600,00 IDR
D. 12.698.800,00 IDR
E. 13.016.200,00 IDR

How to do this? I thought if the one asked is the first month scholarship shouldn't the answer be 2.000.000(1 + 2,5%)1 = 2.000.000(1,025) = 2.050.000,00 IDR?
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March 6th, 2015, 12:26 AM   #2
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Originally Posted by Monox D. I-Fly View Post
35. In the beginning of each month Andika will get 2.000.000,00 IDR scholarship from the government. The scholarship will be received via bank account for 6 month with 2.5% compound interest per month. The amount of scholarship about to be received by Andika in the beginning of the first month is .... (Indonesian National Exam of Vocational High School Academic Year 2012/2013)
A. 9.291.600,00 IDR
B. 11.061.200,00 IDR
C. 11.291.600,00 IDR
D. 12.698.800,00 IDR
E. 13.016.200,00 IDR

How to do this? I thought if the one asked is the first month scholarship shouldn't the answer be 2.000.000(1 + 2,5%)1 = 2.000.000(1,025) = 2.050.000,00 IDR?
Apply the present value of an annuity due formula.
Thus,
$$
2,000,000{{1 - (1.025)^{ - 6} } \over {.025}}(1.025)
$$
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March 6th, 2015, 07:12 PM   #3
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Thank you. The answer is C based on how you would have done it. Btw, I looked at some similar threads I posted some months before and noticed that your posting style has changed. I like your current style, though.
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