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Compound Interest: EXAMPLE 2.1 Simple Versus

This document contains examples and explanations of financial calculations involving simple and compound interest, equivalence, and single amounts. It includes examples of calculating future and present values given variables like principal, interest rate, and time. Diagrams and calculations are provided to illustrate cash flows and equivalence at different interest rates.

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muhendis_8900
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9 views

Compound Interest: EXAMPLE 2.1 Simple Versus

This document contains examples and explanations of financial calculations involving simple and compound interest, equivalence, and single amounts. It includes examples of calculating future and present values given variables like principal, interest rate, and time. Diagrams and calculations are provided to illustrate cash flows and equivalence at different interest rates.

Uploaded by

muhendis_8900
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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EXAMPLE 2.

1 Simple versus Compound Interest

EXAMPLE 2.1 (continued) Simple versus Compound Interest

EXAMPLE 2.1 (continued) Simple versus Compound Interest

EXAMPLE 2.1 (continued) Simple versus Compound Interest

EXAMPLE 2.2

Equivalence

EXAMPLE 2.2 (continued) Equivalence

Figure 2.5a Cash flow diagram

EXAMPLE 2.2 (continued) Equivalence

Figure 2.5b Equivalence calculations at varying interest rate

EXAMPLE 2.2 (continued) Equivalence

EXAMPLE 2.3 Equivalence Calculations

Figure 2.6 Equivalent worthcalculation at n = 3

EXAMPLE 2.4 Single Amounts: Find F, Given P, i, and N

EXAMPLE 2.4 (continued) Single Amounts: Find F, Given P, i, and N

EXAMPLE 2.4 (continued) Single Amounts: Find F, Given P, i, and N

Figure 2.8 Cash flow diagram

EXAMPLE 2.4 (continued) Single Amounts: Find F, Given P, i, and N

EXAMPLE 2.5 Single Amounts: Find P, Given F, i, and N

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