COMPOUND
INTEREST
By: Prof. Mercy Cristy B.
Samarita
Compound Interest
The greatest mathematical discovery
of all time is compound interest.
Albert Einstein
2
When an interest is added to the
principal at regular intervals and
the sum becomes the new
prin

Compound Interest for Nominal
Value of Time
Approximate Method is a technique applied
for accumulating a principal or the discounting
of some amount for n interest periods, where n
is not an integer. The approximate method may
either be accumulating or di

EQUATIONS of VALUE
PREPARED BY: MERCY CRISTY B. SAMARITA
Interest problems generally involve four quantities:
a.) principal(s)
b.) investment period length(s)
c.) interest rate(s)
d.) accumulated value(s).
Two or more amounts of money payable at different

Sinking Fund
Sinking
The Nature of Sinking Fund
Sinking Fund refers to a fund established through a series of regular
periodic deposits or savings intended to accumulate a fund for a
accumulate
certain purpose.
The Sinking fund created may be intended