In the year 2020, the stock market fell because of COVID-19. You started investing from the year 2003, with an initial capital of P50,000. The offer of the bank during this year stated “Earn 3.7%...

In the year 2020, the stock market fell because of COVID-19. You started investing from the year 2003, with an initial capital of P50,000. The offer of the bank during this year stated “Earn 3.7% interest rate, compounded quarterly for 6 year!” From the accumulated amount after 6 years, P5,000 was liquidated due to placement fees, etc. The new lump sum was further increased with the new interest rate offered by the bank and was planned to be the interest rate forever. “Earn 4% interest rate, compounded semi-annually!” However, when the pandemic surged at the end of 2020, the bank notified everyone that they will stick with the latest interest rate but will apply an inflation rate of 1.89% until the end of 2025.