SIMPLE AND COMPOUND INTEREST

Slides:

Advertisements

Similar presentations

Equations in Quadratic Form

Advertisements

SIMPLE AND COMPOUND INTEREST

Operations on Functions

Solving Quadratic Equations.

Applications of Quadratic Equations. The top of a coffee table is 3 metres longer than it is wide and has an area of 10 square metres. What are the dimensions.

Parallel and Perpendicular Lines. Gradient-Intercept Form Useful for graphing since m is the gradient and b is the y- intercept Point-Gradient Form Use.

PAR TIAL FRAC TION + DECOMPOSITION. Let’s add the two fractions below. We need a common denominator: In this section we are going to learn how to take.

Let's find the distance between two points. So the distance from (-6,4) to (1,4) is 7. If the.

SETS A = {1, 3, 2, 5} n(A) = | A | = 4 Sets use “curly” brackets The number of elements in Set A is 4 Sets are denoted by Capital letters 3 is an element.

DOUBLE-ANGLE AND HALF-ANGLE FORMULAS

(r,  ). You are familiar with plotting with a rectangular coordinate system. We are going to look at a new coordinate system called the polar coordinate.

SPECIAL USING TRIANGLES Computing the Values of Trig Functions of Acute Angles.

SOLVING LINEAR EQUATIONS. If we have a linear equation we can “manipulate” it to get it in this form. We just need to make sure that whatever we do preserves.

You walk directly east from your house one block. How far from your house are you? 1 block You walk directly west from your house one block. How far from.

INVERSE FUNCTIONS.

The definition of the product of two vectors is: 1 This is called the dot product. Notice the answer is just a number NOT a vector.

Dividing Polynomials.

exponential functions

GEOMETRIC SEQUENCES These are sequences where the ratio of successive terms of a sequence is always the same number. This number is called the common ratio.

VECTORS. A vector is a quantity that has both magnitude and direction. It is represented by an arrow. The length of the vector represents the magnitude.

The standard form of the equation of a circle with its center at the origin is Notice that both the x and y terms are squared. Linear equations don’t.

ARITHMETIC SEQUENCES These are sequences where the difference between successive terms of a sequence is always the same number. This number is called the.

Properties of Logarithms

Logarithmic and Exponential Equations. Steps for Solving a Logarithmic Equation If the log is in more than one term, use log properties to condense Re-write.

SEQUENCES A sequence is a function whose domain in the set of positive integers. So if I gave you a function but limited the domain to the set of positive.

11.3 Powers of Complex Numbers, DeMoivre's Theorem Objective To use De Moivre’s theorem to find powers of complex numbers.

COMPLEX Z R O S. Complex zeros or roots of a polynomial could result from one of two types of factors: Type 1 Type 2 Notice that with either type, the.

Sum and Difference Formulas. Often you will have the cosine of the sum or difference of two angles. We are going to use formulas for this to express in.

Solving Quadratics and Exact Values. Solving Quadratic Equations by Factoring Let's solve the equation First you need to get it in what we call "quadratic.

Surd or Radical Equations. To solve an equation with a surd First isolate the surd This means to get any terms not under the square root on the other.

COMPOSITION OF FUNCTIONS “SUBSTITUTING ONE FUNCTION INTO ANOTHER”

COMPOUND INTEREST Since this section involves what can happen to your money, it should be of INTEREST to you!

COMPOUND INTEREST Since this section involves what can happen to your money, it should be of INTEREST to you!

Remainder and Factor Theorems. REMAINDER THEOREM Let f be a polynomial function. If f (x) is divided by x – c, then the remainder is f (c). Let’s look.

Dividing Polynomials Using Synthetic Division. List all coefficients (numbers in front of x's) and the constant along the top. If a term is missing, put.

INTRODUCING PROBABILITY. This is denoted with an S and is a set whose elements are all the possibilities that can occur A probability model has two components:

The sum f + g This just says that to find the sum of two functions, add them together. You should simplify by finding like terms. Combine like terms &

Let's just run through the basics. x axis y axis origin Quadrant I where both x and y are positive Quadrant II where x is negative and y is positive Quadrant.

We’ve already graphed equations. We can graph functions in the same way. The thing to remember is that on the graph the f(x) or function value is the.

The sum f + g This just says that to find the sum of two functions, add them together. You should simplify by finding like terms. Combine like terms &

Exercise Write 5% as a decimal Write 6.5% as a decimal Exercise.

TRIGONOMETRIC IDENTITIES

COMPOUND INTEREST Since this section involves what can happen to your money, it should be of INTEREST to you!

Systems of Inequalities.

RATIONAL FUNCTIONS II GRAPHING RATIONAL FUNCTIONS.

THE DOT PRODUCT.

SIMPLE AND COMPOUND INTEREST

Matrix Algebra.

Absolute Value.

Calculating Interest Interest = the cost of ___________

Graphing Techniques: Transformations Transformations Transformations

INVERSE FUNCTIONS.

Operations on Functions

SIMPLE AND COMPOUND INTEREST

INVERSE FUNCTIONS Chapter 1.5 page 120.

Solving Quadratic Equations.

INVERSE FUNCTIONS.

Graphing Techniques: Transformations Transformations: Review

Symmetric about the y axis

The Binomial Theorem.

exponential functions

Operations on Functions

Symmetric about the y axis

The Complex Plane; DeMoivre's Theorem

Graphing Techniques: Transformations Transformations: Review

Rana karan dev sing.

Presentation transcript:

SIMPLE AND COMPOUND INTEREST Since this section involves what can happen to your money, it should be of INTEREST to you!

Simple Interest: Depends On PRINCIPAL AMOUNT* (P) INTEREST RATE (R) Found by multiplying the interest rate by the principal amount by time Depends On PRINCIPAL AMOUNT* (P) INTEREST RATE (R) TIME (T) *Principal Amount: Original amount borrowed or invested

I = PRT IMPLE INTEREST FORMULA Annual interest rate Interest paid Time (in years) Principal (Amount of money invested or borrowed)

I = PRT Examples I = (4000)(0.05)(5) I= $1,000 If you borrowed $4,000 at an interest rate of 5% for 5 years, how much interest would you pay on the loan? I = PRT enter in formula as a decimal I = (4000)(0.05)(5) I= $1,000 Amount of interest paid = $1,000 Total amount repaid = $5,000

If you invested $200.00 in an account that paid simple interest, find how long you’d need to leave it in at 4% interest to make $10.00. enter in formula as a decimal I = PRT 10 = (200)(0.04)T 1.25 yrs = T Typically interest is NOT simple interest but is paid semi-annually (twice a year), quarterly (4 times per year), monthly (12 times per year), or even daily (365 times per year).

This is how investors make their money WORK for THEM!! COMPOUND INTEREST Compound Interest Interest is added to principal each time it is calculated, causing the principal to increase for future calculations Compound Interest allows your money to generate its own earnings. This is how investors make their money WORK for THEM!!

COMPOUND INTEREST FORMULA annual interest rate (as a decimal) Principal (amount at start) time (in years) amount at the end number of times per year that interest in compounded

COMPOUND INTEREST EXAMPLE Find the amount that results from $500 invested at 8% compounded quarterly after a period of 2 years. 4 (2) .08 500 4

COMPOUND INTEREST EXAMPLE 2 After 20 years of 6% interest compounded monthly, an account has $16,551.02. What was the original deposit amount? 12 (20) .06 $16,551.02 12

EFFECTIVE RATE OF INTEREST Effective rate of interest is the equivalent annual simple rate of interest that would yield the same amount as that made compounding. This is found by finding the interest made when compounded and subbing that in the simple interest formula and solving for rate. Find the effective rate of interest for the problem on the previous slide. The interest made was $85.83. Use the simple interest formula and solve for r to get the effective rate of interest. I = Prt 85.83=(500)r(2) r = .08583 = 8.583%

RULE OF 72 72 ÷ interest rate* = number of years for money to double Shortcut for calculating the effects of compound interest 72 ÷ interest rate* = number of years for money to double *For the Rule of 72 DO NOT change percent to decimal Rule of 72 video

Acknowledgement I wish to thank Shawna Haider from Salt Lake Community College, Utah USA for her hard work in creating this PowerPoint. www.slcc.edu Shawna has kindly given permission for this resource to be downloaded from www.mathxtc.com and for it to be modified to suit the Western Australian Mathematics Curriculum. Stephen Corcoran Head of Mathematics St Stephen’s School – Carramar www.ststephens.wa.edu.au