examples4.6

examples4.6 - Amount of Simple Interest: A = P (1 + rt )...

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Amount of Simple Interest : A = P (1 + rt ) where P = Principal ( Present Value) A = Amount ( Future Value) r = annual rate of interest (in decimal form) t = borrowing time in years ___________________________________ Amount with Interest Compounded Periodically : A = P 1 + r n " # $ % nt where P = Principal ( Present Value) A = Amount ( Future Value) r = annual rate of interest (in decimal form) n = number of compounds per year t = borrowing time in years _______________________________________ Amount with Interest Compounded Continuously : A = Pe rt where P = Principal ( Present Value) A = Amount ( Future Value) r = annual rate of interest (in decimal form) t = borrowing time in years
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Examples worked in lecture class: 1. Cal charged $1500 on his VISA card to pay tuition his first semester at FSU. (He thought it would be much easier to pay the bill after graduation.) If interest is charged at 1.5% per month compounded daily, how much will Cal owe in five years? 2. Fran just inherited $50,000 from a rich uncle. How much of
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This note was uploaded on 12/11/2011 for the course MAC 1140 taught by Professor Kutter during the Fall '11 term at FSU.

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examples4.6 - Amount of Simple Interest: A = P (1 + rt )...

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