Sie sind auf Seite 1von 74

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Computation
Simple interest = (principal ) * ( interest rate) * (number
of time period)
Or I = Prt
Where I = simple interest
P = principal
r = interest rate
t = number of time period of loan
Y
2 
he total amount ´Aµ to be repaid is the
principal plus the accumulated interest, or
A =P+I
= P + Prt
= P(1 + rt)
If the future value ´Aµ is known, the
present value of an amount ´Pµ at simple
interest ´rµ can be written as :
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1+
|m
à valent Vales of Dfferent Debts
and ther Payments

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   
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à 

÷ man owes Rs. 800, Rs. 1,000, and Rs. 200 due in 30
days, 60 days and 90 days respectively. If the rate of
interest is 6%, when will a single payment of Rs. 2,020
will discharge ail the three debts?
  :

## Let the comparison date be 90 days

from now. The given diagram
illustrates the situation.

|Y
2 
   
 


## Rs. 800 800[1+(60/360)(0.06)] = Rs. 808.00

Rs.1,000 1,000[1+(30/360)(0.06)] = Rs. 1005.00
Rs. 200 = Rs. 200

## Total Total on comparison date

Borrowed |'
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a a 
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2


© 2  involves the calculation of interest
periodically over the life of the loan (or investment).
principal.
principal plus interest).

 is the interest on the principal plus
the interest of prior periods.
 
, or  , is the final amount
of the loan or investment at the end the last period.


 
ow \$1 will grow if it is calculated for 4 years at
8% annually?
1.6 ÷fter 4
÷fter 3
÷fter 2 periods
periods
1.4 ÷fter 1 periods \$1.3605
D 
 period \$1 \$1.2597
1.2 \$ 1.1667
 \$ 1.08
\$ 1.00
1

0.8

0.6

0.4

0.2

0
0 1 2 3 4
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   ü     ü  |m  
© @      
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           
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§
2ompound ÷mount Formula
Let
P = Principal
i = interest rate per compounding period
n = number of compounding periods
(number of periods in which the
principal has earned interest)
S = compound amount
The compound amount after one period is
S = P + iP
S = P(1 + i)
Y
2 

     
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 | À  À   | À  
u | À   | À 
u | À  

## Similarly, the compound amount after three periods is given by:

u | À  

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2 

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         3
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       

à 
1. Find out the compound amount and the
compound interest at the end of three
years on a sum of Rs. 20,000 borrowed at
6% compounded annually.
2. If Rs. 3,000 are invested at 6% interest
compounded semi-annually what would it
amount to at the end of 8 years?

|
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

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Ô
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Ô      
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 
      
Ô 


2ontinue͙

   :
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 
  6% 
      
6     
  

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
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à 
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6%     %      /-7+
  
  

 | À  
!|
 
  

  
     
        


ü
  
  
(  ( 
      

 
   x
| À  | À 
+    

   
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    )    *
%&    

## (     

    )    *
>
à  
÷  Ô 

    *

 Ô
 
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       !"
    Ô
 +
u ? V V O ÷
m
   !"a 

?     
   

  
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 
 

    
  
   
    

      
 
   
    


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  
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

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       !"
 
    #  
   !"
 


 #  
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       \$
 \$ %
 


   
   !"
§
2ontinued͙.

u             
  
\$    

    

 | ! x  
 
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|! x  
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x  |! 
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Y
+  , 
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   
-   u 
|  )-( |||*
'
-./u/01%/
)0#2,-2%
0/./u0*
5 The compound amount formula is given by:
u  of
5 ÷ slight rearrangement  the
| formula
 gives:


u
 u | 
!
This formula  is called the
formula. |   Present value or discounting

## 5 The factor or is called the present value

factor or the discounting factor.

|
|

 | 
!

ü
à 

i. Find the present value of Rs. 4,814.07 due at
the end of 8 years if money is worth 6%
compounded semi-annually.
ii. What sum of money invested at 6%
compounded annually will amount to Rs. 500
in 4 years?
iii. Find the present value of Rs. 4,958.54 due at
the end of 8½ years if money is worth 6%
compounded semi-annually.

ü|
÷     



    



  

à 
 
             
        
        
 
      
  

    
        
  

ü
à 
 (interest bearing note)

## ÷n interest bearing note of Rs. 5,000

dated January 1,1980 at 6% compounded
quarterly for 10 years was discounted on
January 1, 1984. what were the proceeds
and the compound discount if the note
was discounted at 8% compounded semi-
annually?

ü
à 

' a ÷  
 a 8  &  (\$)))  
  &  ')\$)))  (9   2

  a ÷       7 

      a 8    

/+   3
- a:  
  a a  &  7\$)))   -
  &  (\$)))   7   #    
 &  7\$()) 
\$ 
 
 %  
 a a     
   

  \$   
 *+ 
 3

üü
2ontinued͙
è & u
 \$  '()   è 

  
)))   * 
  +
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 
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
 
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
      . 
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\$ ./    !

 \$
 
  
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- \$   ())    
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
   #)))  \$

 
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 ?    \$ ./   
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
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- 
 


    
 
     1)))0

ü>
2ontinued͙

    
   | ||

    |  ||

üm
2÷PTàR # 11

a a 
  

ANNUIIàS
ü§
/3

0
2u
5An anny s a seres of perdc paymens
(slly e l  s).
5he pyes re de  reglr ervls f
e sch s lly, selly, rerly
r hly.
5à 
les f es clde
^ @eglr de
ss   svgs cc
^ hly cr
^ rgge
^ Isrce
yes
^ Perdc
yes  
ers fr  reree
fd
üY
2ontinue͙

5If he
yes re de  he ed f he

ye
erds he y s clled 
´rdry yµ
5If he
yes re de  he begg
f ech ervl he y s clled
´y deµ
5he e bewee w sccessve
ye
des s clled ´
ye
erdµ.
5he e bewee he begg f he 1s

ye he ed f he ls
ye

erd s clled he ´er f he yµ

ü'
u 

&    
      
     
;     <
  ;  % <   
    ;  <
       %  
 | À   ! | 
u  
  
>
à 
le
1. Fd he  f  y f @s. 500
yble  he
ed f ech yer fr 10 yers, f he eres re s 6%
c
ded lly.

## Fdg @ whe S s Kw

. A fher  he e f brh f hs dgher decdes 
de
s  cer   he ed f ech yer  he
fr f  y. He ws h he s f @s. 0,000
shld be de vlble fr eeg he e
eses f hs
dgher·s rrge whch he e
ecs  be sleed
js fer her 18h brhdy. If he
yes ccle
 8% c
ded lly, hw ch shld he sr
de
sg lly?

>|
Use f he y ble
© I ble 5  bk
ge 309 vles f he
s f  rdry y f
   @e.1 re
gve. We se he sybl red
|  s

! | ´s
gle    µ s sed fr he fcr .
©  serch  ery  he ble we csl
he ble gs  d , d he l
ly
by he
ye
er
erd.
© he se f he ble wll be dscssed  he
sl f
rbles.

Fdg  whe S s kw
à 
le:
Hw y sel
yes f @s. 100 ech 
 cc  he fr f  rdry y wll
ccle @s. 3,000 f he eres re s 8%?

## Fdg  whe S s kw

à 
le:
A y f @s. 300
yble  he ed f ech
rer s  @s. 13, 00  8 yers. Wh s he
l re f eres f  s c
ded rerly?

>
Ô     ë    

  
© u    
       
          
    üü
               

          
     
! "#         "\$#     
    
"#           "#   
    
"#      !
%    !  üü ! 
! ! >ü
D     
  
©     %      
   
  6% 
    6      


## ?      )   

Ô 
  Ô 
Ô Ô  
Ô 
   Ô  
 

   Ô Ô 
 
>>
# \$ 
!

%     Ô
Ô%? 
 

   Ô

Ô 
% 
 Ô   )
 
   Ô 
,%,
  -  Ô
 )
 | ! | À  !

 
  
>m
á  
© % & ' ( )  **+   
        
 | ! | 

!


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, *    %    
 
        (   
  + %         
       -
| ! | À 
!

   
  

à ë
* \$   , .     )    
           
           !  
          / 
           
            0
          ,
'11          *
        /    
 

>Y
Ô    D 

## © a \$     , *111   

 )       
        )  
     2  
        
  '/     2 
!            
          
       0
>'
Ô     D 

## © a \$         

, 1111    )   
3/       2 
     ,111    
         
  4       
   (    +  
 )          
  0
m
 

©               
             
            ! 
            
            
© %              
            
%             
 -
u       |   !       |   ! |
 |   | ! | 
 u      ! |
  
m|
# \$ !

## © Ô x  x      

 
  x   
x   
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