## Subset

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…

## 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,…