Resumen
Summary Grade 11 Financial Mathematics
- Grado
- Institución
Summary of basic Grade 11 Financial Maths . Includes some examples. Interest , Depreciation and nominal/effective rates.
[Mostrar más]Vista previa 2 fuera de 9 páginas
Vista previa 2 fuera de 9 páginas
Añadir al carrito
Añadir al carrito
Vendedor
Seguir
monicatakawira
Comentarios recibidos
Vista previa del contenido
SIMPLE?Subject: Mathematics. INTEREST CALCULATED ON ORIGINAL
AMOUNT.
COMPOUND?
CALCULATED ON THE AMOUNT WITH
INTEREST. ‘INTEREST ON INTEREST’
Topic: Financial Mathematics.
BASIC CONCEPTS:
1. INTEREST
- COMPOUND INTEREST.
- SIMPLE INTEREST.
2. DEPRECIATION
- LINEAR DEPRECIATION.
- REDUCING BALANCE DEPRECIATION.
3. NOMINAL AND ANNUAL EFFECTIVE RATES.
1. Interest:
Rules to live by:
- Simple interest is for simple people.
- When we are not told which particular interest to use, use COMPOUND interest.
***Note: The formula to find P when given A is as follows:
PA(1i)n
Simple Interest Formula
A= P x i x n
A= final amount
P= principal / initial amount
I= interest rate
- Different compounding periods:
N= Number1. of years invested.
Annually. – once a year. (n and i don’t change)
2. Semi-annually. – every six months. (divide i by 2 and multiply n by 2)
3. Quarterly. – 4 times a year. (divide i by 4 and multiply n by 4)
, 4. Monthly. – every month. (divide i by 12 and multiply n by 12.)
Example:
(on White Board)
2. Depreciation:
? - an item losing value over a period of time.
- Linear depreciation. (SIMPLE)
AP(1i.n)
- Reducing balance depreciation.
AP(1i)n
3. Nominal and Annual Effective Rates.
You need to know the formula off by heart.
Nominal rate ? Does take the compounding period into account and is therefore
more accurate.
Effective rate? Does not take the compounding period into account. (NOT AS
ACCURATE)
Examples:
Los beneficios de comprar resúmenes en Stuvia estan en línea:
Garantiza la calidad de los comentarios
Compradores de Stuvia evaluaron más de 700.000 resúmenes. Así estas seguro que compras los mejores documentos!
Compra fácil y rápido
Puedes pagar rápidamente y en una vez con iDeal, tarjeta de crédito o con tu crédito de Stuvia. Sin tener que hacerte miembro.
Enfócate en lo más importante
Tus compañeros escriben los resúmenes. Por eso tienes la seguridad que tienes un resumen actual y confiable. Así llegas a la conclusión rapidamente!
Preguntas frecuentes
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
100% de satisfacción garantizada: ¿Cómo funciona?
Nuestra garantía de satisfacción le asegura que siempre encontrará un documento de estudio a tu medida. Tu rellenas un formulario y nuestro equipo de atención al cliente se encarga del resto.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller monicatakawira. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for 4,81 €. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
45,681 summaries were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 15 years now