Subset Set A is a subset of set B (written if every element of A is also an element of B. Set A is a proper subset (written if and…
Month: July 2014
Present value of an Annuity
Present value of an Annuity The present value P of an annuity of n payments of R dollars each at the end of consecutive interest periods with interest compounded…
Future Value Of an Ordinary Annuity
Future Value Of an Ordinary Annuity Where S is the future value; R is the payment; i is the interest rate per period; n is the number of periods.…
Sum Of Terms
Sum Of Terms If a geometric sequence has first term a and common ratio r, then the sum Sn of the first n terms is given by
Present Value for Compound Interest
Present Value for Compound Interest The present value of A dollars compounded at an interest rate I per period for n periods is P = or P = .
Effective Rate
Effective Rate The effective rate corresponding to a stated rate of interest r compounded m times per years is re = Example:- A bank pays interest of 4.9% compounded monthly.…
Compound Amount
Compound Amount A = P( 1 + i)n, Where i = and n = mt, A is the future (maturity) value; P is the principal; r is annual interest rate;…
Simple Interest Rate Find
Simple Interest Rate Find Example:- Carter Fenton wants to borrow 8000 from Christine O’Brien. He is willing to pay back 8380 in 6 months. What interest rate will he…
Future or Maturity Value for Simple Interest
Future or Maturity Value for Simple Interest The future or maturity value A of P dollars at a simple interest rate r for t years is A = P(1 +…
Simple Interest
Simple Interest I = Prt, where p is the principal; r is the annual interest rate; t us the time in years. Example:- To bye furniture for a new apartment,…
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