Summary Financial Maths - IEB Grade 12 Mathematics Core P1

, I
A P(1 ni)
= +




golden rules ·
simple:
I
1. Person holding money pays

interest · APPreCiatiOn
i
A P(-i)
=




Interestperiod must compound:
·
2.




equal paymentperiod

↳ interestr ate
changes
· on varnities
accordingly

I
A PS1-in)
=




·
Straightline:



· depreciation


5
i
nominal/ P(1-i)"
balance:A
=




reducing
·




effective P =
principal amount

·for z)
golden rule




to
⑮ *




ratemities
Fixed amountpaid
regularly

~fixed deposits/investments
·
future vaLUe
↳
⑰



present
value
I
IOGn*
I F x()
+i=1)
=




*

p x) i) )
(
+
-

=




P present value
=