-G 11kS =

Cashflow diaz: am: I

agus
"I

inthe Bank
intestRale: simple I

-
compound
Simple:
loday:Blok
--
interestcate:10%

Year 1:10000 10% (10000 $11000

+ =

11000 10% (10000 $12000

yearf:
=
+

=10000 2 (10% +

1000
x

!
10000 10 (10% x10000 $20000
year 10:
+ =

P nIPP(1 nI)
f
= +
= +

F10 10000(1+100.1 20000

= =

I
always occur after Pin Tire

ficllogo
y Fg12000
=

-
q -
P 10000 flogok
4,000
=
2

O 8 Fg12k =

0, ↑
&
0
-

P=100od I ↓1000
Po
o
10
 Compounded:
diff=Ik
Ex 10000 10x(10000):
= +
$lloo
2: 11000 10;
+
(11000):$12,000
diff:1100
Siz:121000 10%(121000):13310$
+
diff= 1210 1000011.N=$13310
- =

i Am.-P(1+ c)"
+1x 10000
=

(1+ 0.)"$25937.43
=

f10:23937.43
-

I 10

Po 10000
=

1000
52:19100
p
A

I A ↓
P,:11k
10000

it
compound
have youdeposited yearat
ex: How much a 10%

fa P(1 0.)m +

Fr 10000
=

I
=

P
2

=
-

sea o
Be

p. 8264.64(8:8964.46
 /sanigea:(1+0.0-1=0.0615

fiest
Fr 10000(1 0.06152):11268.24

ofthe
+
=

2 ger
② quester in a semi

fieff,semigen"g,
0.01 et

qn

ps
P F(1 i)
= +

F(P)f,i,n)
=

P-g 10000
=

ieff/y=
3C: i 10%
=

per compounded yearly

year
The componding ofandI should
nf3 be similar
=

O
i 12% peryear
=

1 - ief/math--I
year
compounded monthly we
O
only dourde
when it is compounded X
by X
(1+0.12)*
divide
7 10000
Lee

10000
$) =
$11200
=

i
effective peh:=11
S compounded monthly
charged from year 1 month
Daog*12%.=
to

intestate
nominal
yearly
Fears:10000(1 0.01) $11,268.23
+ =

effective we use the

:eff/period:afprion
ieft/gear: Ms)". 1=0.1258
=12.68;
left,
month per year compounded
yearly
:eff/quarter 1 0.01)eiosi
=
+

Fyquarter: 10000 (1+0.30314=$)

11ae
same answer

many
⑭How
0.186825:(1+ ieff/quates - I putera
gene

(1 0.196825)" 1 0.0303
+
-
=

3.03%
=

18.68% per year compondedyeally is the

same

gear componded monitly

as 18%
ph
in a semigee
may
How quarters
②
0.186823:(1+ieff/semigen) -
I

6 ieff/son year 0.06152

=

given ieff/you find; eff/semigers

left
fieff/get
Granith should
D
be the bran
 i 6%
per semi-year componded monthly
=

rating
e
mahati
·leff/month:G
E we have bronth re
in a semiyear

a
or
:eff/ year
left
b
=

fanwage
:eff/semi year:(1 ()
+
-

1 0.06132
=

6-152%
=

ieft/yar (1 0.06152) =0.1268.

= +

↑eff/queter

0.06152=11+
ieff(quante)2- 1
i effective/quartes 0.0303
=

i 12%
per year compounded early
=

:elof/dadly:1 0.000328 =

jeff/yer:(110000328)363_1 8.127--19.7% =

and yearly I
->

Flyer 10000 (10.127)* save

=
as 10000(1+0.000328" 1,274:7
=
=

i 125
=

companded continuously:
per year
jeff/ year 2018 1 0.1275 - -

calable;eff(yea if i 6% per semiged componded =

continuosly
left/year=6 :eff/smige=e"*1=0.0618
ieft/yea (1+0.0618)2-I=

=0.01274