Topic : Simple Interest & Compound Interest (Theoretical ...
Chapter 9 Compound Interest
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Transcript of Chapter 9 Compound Interest
Miller/Salzman/Clendenen, Business Mathematics, Eighth Edition © 2000 Addison Wesley Longman, Inc. All rights reserved. Chapter 9 Slide 1
Chapter 9Compound Interest
Miller/Salzman/Clendenen, Business Mathematics, Eighth Edition © 2000 Addison Wesley Longman, Inc. All rights reserved. Chapter 9 Slide 2
The Value of $1 Invested in 1492
Miller/Salzman/Clendenen, Business Mathematics, Eighth Edition © 2000 Addison Wesley Longman, Inc. All rights reserved. Chapter 9 Slide 3
Compound Interest Table
Miller/Salzman/Clendenen, Business Mathematics, Eighth Edition © 2000 Addison Wesley Longman, Inc. All rights reserved. Chapter 9 Slide 4
Interest on $1000 at 8% per Year for 10 Years
Not at all (simple interest) $ 800.00Annually $1158.92Semiannually $1191.12Quarterly $1208.04Monthly $1219.64Daily $1225.35
Compounded Interest
Miller/Salzman/Clendenen, Business Mathematics, Eighth Edition © 2000 Addison Wesley Longman, Inc. All rights reserved. Chapter 9 Slide 5
Values of (1+i )n for 3 1/2% Compounded Daily
Miller/Salzman/Clendenen, Business Mathematics, Eighth Edition © 2000 Addison Wesley Longman, Inc. All rights reserved. Chapter 9 Slide 6
Interest by Quarter for 31/2% Compounded Daily Assuming 90-Day Quarters
1 1.0086670672 1.0174092513 1.0262272054 1.035121585
Number Value ofof Quarters (1 + i)n
Miller/Salzman/Clendenen, Business Mathematics, Eighth Edition © 2000 Addison Wesley Longman, Inc. All rights reserved. Chapter 9 Slide 7
Compound Interest for Time Deposit Accounts Compounded Daily
Miller/Salzman/Clendenen, Business Mathematics, Eighth Edition © 2000 Addison Wesley Longman, Inc. All rights reserved. Chapter 9 Slide 8
Present Value/Future Value
Miller/Salzman/Clendenen, Business Mathematics, Eighth Edition © 2000 Addison Wesley Longman, Inc. All rights reserved. Chapter 9 Slide 9
Present Value of a Dollar Table