Business Mathematics
MAT 112
Mathematical Applications
in Banking and Finance
, 2 CONTENTS
We are here
2.3 Compound Interest 2.1 Simple Interest
2.2 Bank Discount
2.4 Annuity & Promissory Notes
,2.3 COMPOUND INTEREST
, MAT 112 Buss. Mathematics
What is Compound Interest?
o It is arises when interest is added to the principal
which changes time to time
o It is paid on the original principal and accumulated
past interest
o Not always calculated per year, it could be per month,
per week or per days.
MAT 112
Mathematical Applications
in Banking and Finance
, 2 CONTENTS
We are here
2.3 Compound Interest 2.1 Simple Interest
2.2 Bank Discount
2.4 Annuity & Promissory Notes
,2.3 COMPOUND INTEREST
, MAT 112 Buss. Mathematics
What is Compound Interest?
o It is arises when interest is added to the principal
which changes time to time
o It is paid on the original principal and accumulated
past interest
o Not always calculated per year, it could be per month,
per week or per days.
