Professional Documents
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Compound Interest
Compound Interest
IE
finalinvestment
I p
Depreciation
value decrease by a
percentage year after
year
Forexample
A 1000 computer loses 30 in every
year
Yr 1000 30 1 701
871 23 7005 8490
Yr2 1
P R M
Tony’s investment of $4000 is compounded at 8.4% p.a over 5 years. Determine the amount he will
P 4000 A PC R
n 5 12 60 months 4000 1 0.007
r 8.4 100 0.084 4000 00736
1
0.084 12 0.007 6078.95
Value of investment A
k interest compounded monthly
n 2.5
670 at 6 pa for 2.5
years
T
r 6.6 100 0.066 pa
A 670 1 06622.5
786.0819324
786.08
Amount of compedinteredpaid
on
12 compounded bi annually X2
yr
I A P 7 8000
n 2
A P HR 36
6 8 121
8000 1 0.06
11348.15
I 11348.15 8000 83348.45
12 compounded daily
7 8000 A P ITR
n 3 365 800011.000315095
A
095
r 12 A 11 232.80
0.12 365
I A P
0.00032
11232.80 8000
3232.80
ftp.a
i
Imonths
Ipa monthly