UNIT 10 INTEREST RATES Structure 10.0 Objectives 10.1 Introduction 10.2 Meaning and Concept of Interest 10.3 Simple Interest 10.4 Compound Interest 10.5 Special Cases of Compound Rate of Interest 10.6 Let Us Sum Up 10.7 Key Words and List of Symbols 10.8 Some Useful Books 10.9 Answer or Hints to Check Your Progress 10.10. Exercises with Answers/Hints Appendix Tables 10.0 OBJECTIVES After studying this unit, you will be able to: © understand the concept of interest; © define simple interest and calculate simple interest; ‘* define compound interest and calculate compound interest; ‘© perform continuous compounding calculations; and ‘* perform changing compound rate calculations 10.1. INTRODUCTION In this unit, we will study about different kinds of interest rates and the methods of calculating interests. For that purpose, we will discuss the concepts of simple interest and compound interest along with their computations. 10.2, MEANING AND CONCEPT OF INTEREST Money can be lent or borrowed from one entity to another. The price to be paid for the use of a certain amount of money for a certain period of time is known as interest. It is considered as an expense to the borrower and income for the lender. The money borrowed or lent is called principal. The interest may be payable yearly, half-yearly, quarterly or monthly. The idea of interest is based on the time value of money. It means that the money available at the present point of time is worth more than the same 175Business Mathematics 176 amount of money at future point of time. One rupee of today is not equal to one rupee of tomorrow. So, interest is actually the amount charged for the borrowing of money to compensate the lender for the lost opportunity cost of not having the money and also for various risks of lending money such as default risk. 10.3, SIMPLE INTEREST Simple interest () is the interest calculated on the original amount borrowed. Thus, for the entire period of computation, interest is calculated on the principal amount. Rates of interest are usually expressed as percentage. Formula for calculation of simple interest- ple interest = Principal Rate «Time I=Pxrxt where I: Interest, the amount of money that you pay to borrow money or the amount of money that you earn on a deposit. P: Principal which is the original sum of money Time duration for which the money is borrowed/ deposited. Rate of interest which is usually expressed as percent that is paid for money borrowed, or earned for money deposited. Calculating Amount: Amount (4) = P +1 P+(PXrxdor, P(A +rt) (Amount is the total amount due at the end of the period) Example 1: To buy a new car, Ramesh borrows simple interest for 3 years. How much interest will he pay? Solution: Here, P = 5,00,000, r= 8/100=0.08, 1= 3 years, =? Using the formula! = P xr xt, simple interest (/) = 500000 * 0.08 « 3 = Rs. 1,20,000. Ramesh will pay Rs. 1,20,000 as interest for the car loan. Example 2: Aditya deposited Rs. 1,50,000 to a bank at 9.8% interest p.a. Find the total interest that he will receive at the end of 5 years. Also find the amount he will get. Solution: Here, P= 1,50,000, r = 0.098, 1= 5, I-24 =? Since FPxrxt, F 150000 * 0.098 * 5 = Rs. 73,500. Aditya will get Rs. 73,500 as interest.Amount = P+ Interest Rates or,A= 150000 ~ 73500 = Rs. 2,23,500. Aditya will receive Rs, 73,500 as interest and amount of Rs. 2,23,500 after 5 years. Note: We can also calculate amount using formula A= P (1+ rt) A= 150000 [1 + (0.098%5)] or, A=Rs. 2,23,500 Example 3: Himanshi lends Rs. 45,000 to Rama. Find the time required for this amount to yield Rs. 9,900 in simple interest at 11% per annum. Solution: Here, = 9,900,P = 45,000, = 0.11,t=? From I= Pxrxt, we get t= Pr or, t= 9900/ (45000) (0.11) = 2 (years), Example 4: In how many years will a sum be double of itself at 5% p.a. simple interest? Solution: Amount = 2 * Principal Given r=0.05, t=? From A= P+ Pxrxt, A=P (+1) According to question, 2P = P [1 + 1(0.05)] or, 2=1 +1(0.05) or, t= 1/0.05 or, 20. A sum will be double of itself at 5% p.a. simple interest in 20 years. Example 5: A sum of Rs. 1,20,000 was lent out for 2 years at simple interest. The lender got Rs. 1,53,600 in all. Find the rate of interest per annum (p.a). Solution: Here, P = 1,20,000,A = 1,53,600,t= 2-2 A=P(1+r) That is, 153600=120000 (1 +2r) or, 153600 = 120000 + 240000 r 01,240000r = 153600 — 120000 01,7=33600/240000 ory= 0.14 or 14%. The required rate of interest is 14% p.a. 177Business Mathematics 178 Example 6: Find the principal that will yieldRs. 500.50 as interest in 2 years at 5% p.a. simple interest. Solution:Here,/= 500,50,t= 2, r= 0.05,P =? From I= Pxrxt, we get 500.50 = P x 0,05 x2 or, 500.50 = 0.10P or,P = 5,005. ‘The required Principal isRs. 5,005, Example 7: In how much time will Rs. 17,000 become Rs. 22,100 at 10% p.a. simple interest? Solution: P=17,000, A= 22,100,r = 0.10,t =? Since 22100 = 17000 [1+ (0.10)], 22100 = 17000 + 1700 ¢ 01,1700 t= 5100 t= 3 years Check Your Progress 1 1) Whyis interest paid? 2) How long will it take Rs. 10,000 to yield Rs. 2,200 at 53% per annum simple interest? 3) A certain sum of money at simple interest amounts to Rs. 1,120 in 3 years and to Rs. 1,200 in 5 years. Find the principal and the annual rate of interest. 10.4 COMPOUND INTEREST Another type of interest is compound interest. Compound interest is calculated not only on the initial principal amount but also on the accumulated interest of previous periods. In other words, compound interest, is calculated on interest as well as on principal. Therefore, compound interest, is sometimes described as ‘interest on interest” For example, if Rs. 5,000 is deposited at 5% per annum interest for 1 year, at the end of the year the interest is Rs. 250.The amount at the end of year is Rs. 5,000 + Rs. 250 = Rs. 5,250. If this amount is lent at 5% per annum interest, for another year, the interest is calculated on Rs. 5,250 instead of the original Rs, 5,000.So the amount in the account at the end of the second year is Rs. 5,250 + (5,250 x 0.05 x 1)= 5,250 + 262.50 = Rs. 5,512.50. Note that simple interest would produce a total amount of 5,000 + (5,000 x 0.05 x 2) = 5,000+ 500 = Rs. 5,500, The additional Rs. 12.50 is the interest on Rs. 250 at 5% for one year.‘Some concepts related to compound interest: Interest Rates Compound Interest — It is the difference between the compound amount and original principal amount. Compound Amount - The total amount due at the end of the last period. Frequency of Compounding - It indicates the number of times the interest is compounded in one year. Compounding Period - The time period between two consecutive points in time at which interest is compounded. Formula for calculation of compound amount A= P(L+0" wherei = r/k or, annual rate of interest number of compounding period per year and n = kxt; (number of compounding period per year x number of years), A: Amount at the end of ¢ periods P: Principal which is the original sum of money Annual rate of interest Number of compounding periods per year # Time duration in years n: Total number of compounding periods i: Interest rate per compounding period For example,if annual rate of interest is 10% and the compounding is quarterly, then there are 4 compounding periods per year. Thus, i= 0.10/4 = 0.025 If annual rate of interest is 24% and the compounding is monthly, then there are 12 compounding periods per year. So, 0.24/12 = 0.02. i Note: The value of (1 + i"can be found out using compound interest table Some Formulae for Compound Interest Compound Interest may be calculated yearly, half-yearly, quarterly, monthly or continuously. Formulas for different cases have been given below: Time ‘Amount Yearly A=P(1+i)" where i Half. yearly A=P (viy'where = r/2_ and n= 2 Quarterly A=P(1+i)'wherei=r/4 and _n=4r Monthly A=P (1+i'where = r/12_and_n= 121 ‘Compound Interest (in all cases) = A-P. 179Business Mathematics 180 Example 8: Bank pays compound interest at the rate of 5% p.a. Yogi deposited a principal amount ofRs. 5,000 in bank for 4 years. Find the interest that Yogi will receive. Solution:Here,P = 5,000, n= 4, i= 0.05, A We have A= P (1+ i)" ‘So, A = 5000 (1+ 0.05)" or, A = 5000 (1.215506) (Using Compoundinterest Table) ord = Rs. 6,077.53. We get,/= 6077.53 - 5000 or, JF Rs. 1,077.53. Yogi will get Rs. 1,077.53 as interest from bank Example 9: Mehak deposited Rs. 50,000 in a finance account that pays 8% interest, compounded annually. How much amount will be in her finance account after 10 years? Solution: Here, P = 50,000, i= 0.08, m = 10, A=? AsA=P(1+i", A= 50000 (1 +-0.08)"" or, A = 50000 (2.158925) (Using Compound Interest Table) or, A= 1,07,946.25 Mehak will have Rs. 1,07,946.25 in her finance account after 10 years. ‘Example10: Find the compound interest on Rs. 8,000 for 5 years at 6% per annum interest compounded (i) semi-annually and (ii) monthly Solution: Here, P = 8,000,t = 5, r= 0.06,4 =? AWP (+r) (i) A = 8000(1+-0.06/2)"* ‘or, A = 8000(1+ 0.03)!" or, A = 8000 (1.343916) (Using Compound Interest Table) or, A= Rs, 10,751.33. We get./= 10751.33 — 8,000 or, ERs. 2,751.33 (ii) A = 8000(1+0.06/12)'"> i.e, A= 8000(1+ 0.005)” or, =8000 (1.348850) (Using Compound Interest Table) or, A=Rs. 10,790.80. So, = 10790.8 — 8000 or, 1= Rs. 2,790.80.Example 11: If an amount of Rs. 86,400 is invested at 8% p.a. compounded quarterly, how long will it take to accumulate Rs. 2,06,500.60? Solution: Here, P = 86,400," = 0.08,A = 2,06,500,60, =? As A=P (1+ rik)", 206500.60 = 86400 (1 + 0.08/4)" ‘or, 206500.60/86400 =(1.02)" or, (1.02)"=2.39005 or, n log 1.02 ~ log 2.390056 or, n(0.0086) = 0.378408 or, n = 0.378408/0.0086 44 quarters or 11 years. The required time is 11 years Example 12: If interest is compounded annually at an interest rate of 6% p.a., then how long will it take a principal to double itself? Solution: Here, P=P, A= 2P,r=0.06,n =? Asd= P (1 47)", 2P = P(1 +0.06)" or, 2= (1.06)" or, log 2 =n log 1.06 or, n = log 2/ log 1.06 = 0.3010/0.0253 or, = 11.9 years (approx.). Example 13: A sum of money is deposited by Krishna which compounds interest annually. The amount at the end of 2 years is Rs. 5,000 and at the end of 3 years is 5,200, Find the money deposited and the rate of interest. Solution: Here A(1) =5,000,n = 2 and 4(2) = 5,200, n= 3, P=, Now 4=P(1 +r)" That is, 5000= P (1 + 7)... eq. (i) and 5200= P(1 +1) ...eq. (ii) Dividing (ii) by (i) 5200/5000 = P(L + PL +P or,(1 + 7) = 5200/5000 or, r= 5200/5000 — 1 or, r= 1.04 - 1 = 0.04. That is, required Rate of interest = 4%. Now, from eq (i), P = 5000/ (1 + 0.04)? or, P= 5000/(1.04? Interest Rates 181Business Mathematics 182 or, log P= Log 5000 ~ 2 Log 1.04 = 3.69897 — 2 (0.0170) = 3.69897 — .0340 = 3.66497 or, P= antilog (3.66497) = Rs4,623 (approx), Example 14: Vidya’s savings account has a balance of Rs. 2,654.39. The annual interest rate is 3% compounded monthly. Find the original principal amount deposited two years ago, Solution: Here, A= 2,654.39,r = 3%,f=2, P=? Since, i= 3%/12 = 0.0025 and n = 2x12 =24, from A=P (1+), we have 2654.39 = P (1 + 0.0025) or, 2654.39 = P (1.061757) (Using Compound Interest Table) or, P= 2654,39/1,061757 =Rs. 2,500. or, 10.5 SPECIAL CASES OF COMPOUND RATE OF INTEREST Continuous Compounding In the previous section, we discussed various cases where interest was compounded monthly, quarterly, semi-annually and annually. But what if interest is compounded daily or hourly? When the compounding period becomes very tiny and the number of compounding periods per year grows infinitely large, it is called a case of continuous compounding. In such cases, the interest is calculated and added to the principal amount every extremely small time period such as hourly or minutely. Formula for Continuous compounding A= Pe" A: Amount at the end of f periods P: Principal amount which is original sum of money rr: Annual rate of interest Time duration in years Compounding at Changing Rates We have discussed situations when the rate of interest is constant for the entire time period. However, in real life, interest rate can change from time to time, For example — Rashmi lends money to a friend for 2 years at 5% per annum rate of interest. Her friend fails to pay the money after 2 years. Rashmi increases the loan tenure for 2 more years but now at 7% per annum, So, the final amount she will receive is the product of original principal andtwo factors of form (1 + i)"or e“(with proper values of i and » or r and t for each factor). Example 15: If a businessman invests Rs. 50,000 at an annual interest rate of 5% per annum compounded continuously, calculate the amount he will have in the account after five years. Solution: Here, P = 50,000, r= 0.05, 1=5, A=? As A= Pe", we have A= 50000 e®°*) or, A = 50000 (1.2840) (using e‘value table) or, A = Rs. 64,200. Example 16: The difference between simple and compound interest on a principal deposited for 8 years at 3% per annum is Rs, 267.7. Find the principal amount. Solution: Here, r = 0.03, = 8, C.L- S.L =Rs. 267.7. Let the principal amount be ‘x’ Simple interest on Rs.x for 8 years at 3% p.a. =x x 8 x 0,03 = 0.24 x Compound Interest = [ x (1+ 0.03)’ —x] = (1.03)* x ~ x= 1.266770 x = 0.266770x According to question, 0.26677 x- 0.24 x = 267.7 Or, 0.02677 x = 267.7 or,x = 267.7/0.02677 orx =Rs. 10,000, Example 17; Find the principal amount that will become Rs, 16,000 in 9 years if money can be deposited at 2% p.a. compounded semi-annually. Solution: Here, A =16,000, = 9, r= 0.02, P=? Therefore, i= 0.02/2 = 0.01 and n=2x9=18, From A= P (1 + i)"we get 16000 = P (1 + 0.01)'® or,P = 16000/(1.01)'* or, P= 16000/ 1.19614748 or, P = Rs.13,376.28. Example 18: If interest is compounded continuously at an annual rate of 5%, how long will it take a principal to double itself? Solution: Here, P= P,A = 2P, r= 0.05, 1=? Since A = Pe", so 2P=P eo, or, e295 Interest Rates 183Business Mathematics 184 0.05 t log e= Log 2 01,0.05 (0.4343)t= 0.301 (log e =0.4343) or,t=0.301/0,021715 ort 13.86 years = 14 years (approx.).. Example 19: If interest is compounded continuously, at what annual rate will Rs. 3,000 amount to Rs. 3,00,000 in 25 years? Solution: Here, P = 3,000,A = 3,00,000, = 25, r=? As A= Pelt We have 300000 = 3000 e or, €***=300000/3000 = 100 25 or, 25 r log e = log 100 or, 25 (0.4343)r = 2(log e 4343) or, r= 2/10.8575 or, r= 0.1842044 or, r= 18.42 % (approx.).. Example 20: Mr. Arvind deposited Rs. 20,000 in a bank savings account for 3 years. Bank pays 6% p.a. compounded semi-annually for the first year, 12% p.a. compounded quarterly for the second year and 13% per annum compounded continuously for the third year. Find the compound amount in his bank account at the end of 3 years. Solution: Here, P =20,000,A=? Amount at the end of 3 years = 20000 (1 + 0.06/2)° (1 + 0.12/4)*(e™" A= 20000 (1.03)? (1.03)*(e"" 50 or, A = 20000 (1.03)°(e""?) or, A = 20000 (1.19405) (1.13882) (Using e* value table) or, A = Rs. 27,196.16. Check Your Progress 2 1) Fill in the Blanks i) The time period between two consecutive points in time at which interest is calculated is called. (frequency of, compounding/compounding period). ii) When the number of compounding per year grows infinitely large, it is a case of (continuous compounding/ compounding at changing rates) iii) Interest on accumulated interest is. called. ..n.cnne(Simple interest/compound interest) 2) Find the compound amount in following cases: i) Rs. 1,000 at 10% per annum deposited for 5 years;ii) Rs. 2,000 at 6% per annum for 4 years compounded quarterly; and iii) Rs, 1,800 at 5 % per annum compounded semi-annually for 8 years, 3) Deepak deposited Rs.1,000 in bank account for 5 years at 12% simple interest per year. If the same amount had been deposited for the same period at 10% compound interest per year, how much more interest would he get? 4) In what time, will Rs. 1,000 amount to Rs. 5,000, if it is invested at 7% compounded continuously? 10.6 LET US SUM UP In this unit, two basic concepts of interest, viz., simple interest and compound interest have been discussed. Starting with the intuitive idea that it is a payment made to lender by a borrower, it is observed that the difference between initial investment and the accumulated value at a future time point of time would show the amount of interest. While simple interest is paid only on the original principal, not on the interest accrued, in case of compound interest, the calculation would be not only on the initial principal but also the accumulated interest of prior periods. Two special cases of compounding- continuous compounding and compounding at changing rates have been explained. 10.7 KEY WORDS AND LIST OF SYMBOLS Compound Interest: It refers to the interest on the principal amount as well as the interest due. Continuously Compounded Interest: It is the interest on the principal amount that is constantly compounded, essentially leading to an infinite amount of compounding periods. Interest: It is a payment for use of money. It is paid on borrowing money and is received on lending the money. Simple Interest: It refers to the interest which is chargeable on principal amount only. Time Value of Money: Money available at the present time is worth more than the identical sum in the future. List of Symbols, The symbols used in writing different formulas in your study material are the one which are widely used. In the list given below, they are given as the first symbols under various words. Many textbooks have given symbols different from these. Most of the commonly used symbols are also given in the list below. Whenever you read a book it is important to clearly understand the meaning of various symbols used there, For writing different formulas you may use any set of symbols you like, but along with them it is always desirable to explain their meanings Amount at the end of t periods AS, An Annual rate of interest, ni Interest Rates 185Business Mathematics 186 Interest I Interest Rate per compounding period i Number of compounding periods per year km Principal which is the original sum of money P, Ao Time duration in years t Total number of compounding periods n 10.8 SOME USEFUL BOOKS Ayres, Frank Jr. Theory and Problems of Mathematics of Finance, Schaum's Outlines Series. McGraw Hill Publishing Co., New York, 1963. Mizrahi and Sullivan, John, Mathematics for businesss and Social Sciences Wiley and Sons., New Jersey, 1987. Singh, J.K.Business Mathematics, Himalaya Publishing House., New Delhi,2010. Prasad, Bindra. and Mittal, P.K.Fundamentals of Business Mathematics. Har-Anand Publications. New Delhi, 2007. 10.9 ANSWER OR HINTS TO CHECK YOUR PROGRESS Check Your Progress 1 1) Towards the charge of using lender's money. 2) 4 years. 3) Rs. 1,000; 4% per annum Check Your Progress 2 1) @ compounding period, (ii) continuous compounding,(iii)compound interest 2) ()Rs.1,610.51, (ii) Rs. 2,537.97, (iii) Rs.2,672.10, 3) Rs. 162 4) 23 years (approx.) 10.10 EXERCISES WITH ANSWERS/HINT 1) Differentiate between simple and compound interest with examples. 2) What is continuous compounding? Explain with the help of an example, 3) Find the simple interest on Rs. 12,000 borrowed for 8 months. The rate of simple interest is 9% p.a. (Ans: Rs, 720) 4) Monica paid Rs. 675 as interest on a loan of Rs. 5,000. Interest was charged at 9% per annum simple interest. Find the length of the loan. (Ans: 1.5 Years)5) 6) a) 8) 9% Find the compound amount and compound interest if Rs. 700 is lend for 15 years at 7% per annum compounded semi-annually. (Ans: Rs. 1964.76, Rs.1264,76) Mohan deposits Rs. 600 in his bank account. He wants to accumulate Rs. 900 in his account. Find the time it will take to accumulate the amount at the rate of 8% per annum compounded quarterly (Ans: 5.12 Years) Ifinvested for three years, which investment yields the largest compound amount? (a) Rs. 5,000 at 6% per annum compounded annually (b) Rs. 5,125 at 5% per annum compounded continuously or (c) Rs.4,950 at 6.5% per annum compounded annually? (Ans: (a) Rs. 5,978.09, (b) Rs. 5,954.40, (c) Rs. 5979.35). How long would it take for a principal P to double if rate of interest is 14% per annum compounded monthly? (Ans: 4,98 Years) A bank pays 5% per annum compounded continuously. Rs. 4,000 has been deposited for 6 years. Find the amount at the end of 6 years. (Ans: Rs.5399.44) Interest Rates 187Business Mathematics 188 Appendix: Amount at Compound Interest Table n [0.25% | 0.50% | 0.75% | 1.00% | 1.25% | 1.50% | 2.00% 1_| 1.002500 | 1.005000 | 1.007500 | 1.010000 | 1.012500 | 1.015000 | 1.020000 2_ | 1.005006 | 1.010025 | 1.015056 | 1.020100 | 1.025156 | 1.030225 | 1.040400 3_| 1.007519 | 1.015075 | 1.022669 | 1.030301 | 1.037971 | 1.045678 | 1.061208 4 | 1.010038 | 1.020151 | 1.030339 | 1.040604 | 1.050945 | 1.061364 | 1.082432 5_| 1.012563 | 1.025251 | 1.038067 | 1.051010 | 1.064082 | 1.077284 | 1.104081 6 | 1.015094 | 1.030378 | 1.045852 | 1.061520 | 1.077383 | 1.093443 | 1.126162 7_| 1.017632 | 1.035529 | 1.053696 | 1.072135 | 1.090850 | 1.109845 | 1.148686 8 | 1.020176 | 1.040707 | 1.061599 | 1.082857 | 1.104486 | 1.126493 | 1.171659 9 | 1.022726 | 1.045911 | 1.069561 | 1.093685 | 1.118292 | 1.143390 | 1.195093 10 | 1.025283 | 1.051140 | 1.077583 | 1.104622 | 1.132271 | 1.160541 | 1.218994 11 | 1.027846 | 1.056396 | 1.085664 | 1.115668 | 1.146424 | 1.177949 | 1.243374 12 | 1.030416 | 1.061678 | 1.093807 | 1.126825 | 1.160755 | 1.195618 | 1.268242 13 | 1.032992 | 1.066986 | 1.102010 | 1.138093 | 1.175264 | 1.213552 _| 1.293607 14 | 1.035574 | 1.072321 | 1.110276 | 1.149474 | 1.189955 | 1.231756 | 1.319479 15 | 1.038163 | 1.077683 | 1.118603 | 1.160969 | 1.204829 | 1.250232 | 1.345868 16 | 1.040759 | 1.083071 | 1.126992 | 1.172579 | 1.219890 | 1.268986 | 1.372786 17 | 1.043361 | 1.088487 | 1.135445 | 1.184304 | 1.235138 | 1.288020. | 1.400241 18 | 1.045969 | 1.093929 | 1.143960 | 1.196147 | 1.250577 | 1.307341 _| 1.428246 19 | 1.048584 | 1.099399 | 1.152540 | 1.208109 | 1.266210 | 1.326951 | 1.456811 20 | 1.051206 | 1.104896 | 1.161184 | 1.220190 | 1.282037 | 1.346855 | 1.485947 21 | 1.053834 | 1.110420 | 1.169893 | 1.232392 | 1.298063 | 1.367058 | 1.515666 22 | 1.056468 | 1.115972 | 1.178667 | 1.244716 | 1.314288 | 1.387564 | 1.545980 23 | 1.059109 | 1.121552 | 1.187507 | 1.257163 | 1.330717 | 1.408377 | 1.576899 24 | 1.061757 | 1.127160 | 1.196414 | 1.269735 | 1.347351 | 1.429503 | 1.608437 25 | 1.064411 | 1.132796 | 1.205387 | 1.282432 | 1.364193 | 1.450945 | 1.640606 26 | 1.067072 | 1.138460 | 1.214427 | 1.295256 | 1.381245 | 1.472710 | 1.673418 27 | 1.069740 | 1.144152 | 1.223535 | 1.308209 | 1.398511 | 1.494800 | 1.706886 28 | 1.072414 | 1.149873 | 1.232712 | 1.321291 | 1.415992 | 1.517222 | 1.741024 29 | 1.075096 | 1.155622 | 1.241957 | 1.334504 | 1.433692 | 1.539981 | 1.775845 30 | 1.077783 | 1.161400 | 1.251272 | 1.347849 | 1.451613 | 1.563080 | 1.811362 31 | 1.080478 | 1.167207 | 1.260656 | 1.361327 | 1.469759 | 1.586526 | 1.847589 32 | 1.083179 | 1.173043 | 1.270111 | 1.374941 | 1.488131 | 1.610324 | 1.884541 33 | 1.085887 | 1.178908 | 1.279637 | 1.388690 | 1.506732 | 1.634479 | 1.922231 34 | 1.088602 | 1.184803 | 1.289234 | 1.402577 | 1.525566 | 1.658996 | 1.960676 35 | 1.091323 | 1.190727 | 1.298904 | 1.416603 | 1.544636 | 1.683881 | 1.999890 36 | 1.094051 | 1.196681 | 1.308645 | 1.430769 | 1.563944 | 1.709140 | 2.039887 37 | 1.096787 | 1.202664 | 1.318460 | 1.445076 | 1.583493 | 1.734777 _| 2.080685Interest Rates 38 | 1.099528 | 1.208677 | 1.328349 | 1.459527 | 1.603287 | 1.760798 | 2.122299 39 | 1.102277 | 1.214721 | 1.338311 | 1.474123 | 1.623328 | 1.787210 | 2.164745 40 | 1.105033 | 1.220794 | 1.348349 | 1.488864 | 1.643619 | 1.814018 | 2.208040 41 | 1.107796 | 1.226898 | 1.358461 | 1.503752 | 1.664165 | 1.841229 | 2.252200 42 | 1.110565 | 1.233033 | 1.368650 | 1.518790 | 1.684967 | 1.868847 | 2.297244 43 | 1.113341 | 1.239198 | 1.378915 1.706029 | 1.896880 | 2.343189 44 | 1.116125 | 1.245394 | 1.389256 | 1 1.727354 | 1.925333 | 2.390053 445 | 1.118915 | 1.251621 | 1.399676 | 1 1.748946 | 1.954213 _| 2.437854 46 | 1.121712 | 1.257879 | 1.410173 | 1.580459 | 1.770808 | 1.983526 | 2.486611 47 | 1.124517 | 1.264168 | 1.420750 | 1.596263 | 1.792943 | 2.013279 | 2.536344 48 | 1.127328 | 1.270489 | 1.431405 | 1.612226 | 1.815355 | 2.043478 | 2.587070 49 | 1.130146 | 1.276842 | 1.442141 | 1.628348 | 1.838047 | 2.074130 | 2.638812 50 | 1.132972 | 1.283226 | 1.452957 | 1.644632 | 1.861022 | 2.105242 | 2.691588 51 | 1.135804 | 1.289642 | 1.463854 | 1.661078 | 1.884285 | 2.136821 | 2.745420 52 | 1.138644 | 1.296090 | 1.474833 | 1.677689 | 1.907839 | 2.168873 | 2.800328 53 | 1.141490 | 1.302571 | 1.485894 | 1.694466 | 1.931687 | 2.201406 | 2.856335 54 | 1.144344 | 1.309083 | 1.497038 | 1.711410 | 1.955833 | 2.234428 | 2.913461 55 | 1.147205 | 1.315629 | 1.508266 | 1.728525 | 1.980281 | 2.267944 | 2.971731 56 | 1.150073 | 1.322207 | 1.519578 | 1.745810 | 2.005034 | 2.301963 _| 3.031165 57 | 1.152948 | 1.328818 | 1.530975 | 1.763268 | 2.030097 | 2.336493 | 3.091789 58 | 1.155830 | 1.335462 | 1.542457 | 1.780901 | 2.055473 | 2.371540 | 3.153624 59 | 1.158720 | 1.342139 | 1.554026 | 1.798710 | 2.081167 | 2.407113 _| 3.216697 60 | 1.161617 | 1.348850 | 1.565681 | 1.816697 | 2.107181 | 2.443220 | 3.281031 61 | 1.164521 | 1.355594 | 1.577424 | 1.834864 | 2.133521 | 2.479868 | 3.346651 62 | 1.167432 | 1.362372 | 1.589254 | 1.853212 | 2.160190 | 2.517066 | 3.413584 63 | 1.170351 | 1.369184 | 1.601174 | 1.871744 | 2.187193 | 2.554822 | 3.481856 64 | 1.173277 | 1.376030 | 1.613183 | 1.890462 | 2.214532 | 2.593144 | 3.551493 65 | 1.176210 | 1.382910 | 1.625281 | 1.909366 | 2.242214 | 2.632042 | 3.622523 66 | 1.179150 | 1.389825 | 1.637471 | 1.928460 | 2.270242 | 2.671522 | 3.694974 67 | 1.182098 | 1.396774 | 1.649752 | 1.947745 | 2.298620 | 2.711595 _| 3.768873 68 | 1.185053 | 1.403758 | 1.662125 | 1.967222 | 2.327353 | 2.752269 | 3.844251 69 | 1.188016 | 1.410777 | 1.674591 | 1.986894 | 2.356444 | 2.793553 _| 3.921136 70 | 1.190986 | 1.417831 | 1.687151 | 2.006763 | 2.385900 | 2.835456 | 3.999558 71 | 1.193964 | 1.424920 | 1.699804 | 2.026831 | 2.415724 | 2.877988 | 4.079549 72 | 1.196948 | 1.432044 | 1.712553 | 2.047099 | 2.445920 | 2.921158 | 4.161140 73 | 1.199941 | 1.439204 | 1.725397 | 2.067570 | 2.476494 | 2.964975 | 4.244363 74 | 1.202941 | 1.446401 | 1.738337 | 2.088246 | 2.507450 | 3.009450 | 4.329250 75 | 1.205948 | 1.453633 ] 1.751375 | 2.109128 | 2.538794 | 3.054592 _| 4.415835 189Business Mathematics 190 76 | 1.208963 ne 1.764510 | 2.130220 | 2.570529 | 3.100411 | 4.504152 1.4682 77| 1.211985 _| 05 1.777744 | 2.151522 | 2.602660 | 3.146917 | 4.594235, 14755 78 | 1.215015 | 46 1.791077 | 2.173037 | 2.635193 | 3.194120 | 4.686120 1.4829 79 | 1.218053. | 24 1.804510 | 2.194768 | 2.668133 | 3.242032 | 4.779842 1.4903 80 | 1.221098 | 39 1.818044 | 2.216715 | 2.701485 | 3.290663 _| 4.875439 n [3.00% | 4.00% 5.00% 6.00% 7.00% | 8.00% 1 | 1.030000 | 1.040000 _| 1.050000 1.060000 | 1.070000 | 1.080000 2_| 1.060900 | 1.081600 | 1.102500 1.123600 | 1.144900 | 1.166400 3 | 1.092727 | 1.124864 | 1.157625 1.191016 | 1.225043 | 1.259712 4 | 1.125509 [1.169859 | 1.215506 1.262477 | 1.310796 | 1.360489 | 1.159274 | 1.216653 | 1.276282 1.338226 | 1.402552 | 1.469328 6 | 1.194052 | 1.265319 | 1.340096 1.418519 | 1.500730 _| 1.586874 7 | 1.229874 | 1.315932 | 1.407100 1.503630 | 1.605781 | 1.713824 8 | 1.266770 | 1.368569 _| 1.477455 1.593848 | 1.718186 | 1.850930 9 | 1.304773 | 1.423312 | 1.551328 1.689479 | 1.838459 | 1.999005 10 | 1.343916 | 1.480244 | 1.628895 1.790848 | 1.967151 _| 2.158925 11 | 1.384234 | 1.530454 | 1.710339 1.898299 | 2.104852 _| 2.331639 12 | 1.425761 [1.601032 | 1.795856 2.012196 | 2.252192 | 2.518170 13 | 1.468534 | 1.665074 | 1.885649 2.132928 | 2.409845 | 2.719624 14] 1.512590 | 1.731676 _| 1.979932 2.260904 | 2.578534 | 2.937194 15 | 1.557967 | 1.800944 | 2.078928 2.396558 | 2.759032_| 3.172169 16 | 1.604706 | 1.872981 _| 2.182875 2.540352 | 2.952164 | 3.425943 17 | 1.652848 | 1.947900 _| 2.292018 2.692773 | 3.158815 _| 3.700018 18 | 1.702433 | 2.025817 _| 2.406619 2.854339 | 3.379932 | 3.996019 19 | 1.753506 | 2.106849 | 2.526950 3.025600 | 3.616528 | 4.315701 20/ 1.806111 [2.191123 | 2.653298 3.207135 | 3.869684 | 4.660957 21 | 1.860295 | 2.278768 | 2.785963 3.399564 | 4.140562 _| 5.033834 22] 1.916103 | 2.369919 | 2.925261 3.603537 | 4.430402 _| 5.436540 23 | 1.973587 | 2.464716 | 3.071524 3.819750 | 4.740530 _| 5.871464 24 | 2.032794 | 2.563304 4.048935 | 5.072367 | 6.341181 25 | 2.093778 | 2.665836 4.291871 | 5.427433 | 6.848475 26 | 2.156591 | 2.772470 4.549383 | 5.807353. | 7.396353 27 | 2.221289 | 2.883369 4.822346 | 6.213868 | 7.988061 28 | 2.287928 | 2.998703 5.111687 [6.648838 | 8.62710629 | 2.356566 | 3.118651 | 4.116136 5.418388 | 7.114257 _| 9.317275 30 | 2.427262 | 3.243398 | 4.321942 5.743491 | 7.612255 | 10.062657 31 | 2.500080 | 3.373133 | 4.538039 6.088101 | 8.145113 _| 10.867669 32 | 2.575083 | 3.508059 | 4.764941 6.453387 | 8.715271_| 11.737083 33 | 2.652335 | 3.648381 | 5.003189 6.840590 | 9.325340 _| 12.676050 34 | 2.731905 | 3.794316 | 5.253348 7.251025 | 9.978114 | 13.690134 35 | 2.813862 [3.946089 | 5.516015 7.686087 | 10.676581 | 14.785344 36 | 2.898278 | 4.103933 | 5.791816 8.147252 __| 11.423942 | 1.968172 37 | 2.985227 | 4.268090 | 6.081407 8.636087 | 12.223618 | 17.245626 38 | 3.074783 | 4.438813 | 6.385477 9.154252 | 13.079271 | 18.625276 39 | 3.167027 | 4.616366 | 6.704751 9.703507 _| 13.994820 | 20.115298 40 | 3.262038 | 4.801021 _| 7.039989 10.285718 | 14,974458 | 21.724521 41 | 3.359899 | 4.993061 _| 7.391988 10.902861 | 16.022670 | 23462483 42 | 3.460696 | 5.192784 | 7.761588 11,557033__| 17.144257 | 25,330482 43 | 3.564517 | 5.400495 | 8.149667 12250455 | 18,344355 | 27.366640 44 | 3.671452 [5.616515 _| 8.557150 12.985482 | 19,628460 | 29.555972 45 | 3.781596 | 5.841176 | 8.985008 13.764611 | 21.002452 | 31.920449 46 | 3.895044 | 6.074823 _| 9.434258 14.590487 | 22.472623 | 34.474085 47| 4.011895 | 6.317816 | 9.905971 15.465917 | 24.045707 | 37.232012 48 | 4.132252 | 6.570528 | 10.401270 _| 16.393872 | 25.728907 | 40.210573 49 | 4.256219 | 6.833349 | 10.921333 | 17.377504_ | 27.529930 | 43.427419 50 | 4.383906 | 7.106683 | 11467400 | 18.420154 | 29.457025 | 46.901613 31 [4.515423 [7.390951 | 12.040770 | 19.525364 | 31519017 | 50.653742 52 [4.650886 | 7.686589 | 12.642808 | 20696885 | 33.725348 | $4.706041 53 | 4.790412 | 7.994052 _| 13.274949 | 21.938698 | 36.086122 | 59.082524 54 | 4.934125 | 8.313814 | 13.938696 | 23.255020 | 38.612151 | 63.809126 55 | 5.082149 | 8.646367 | 14.635631 | 24.650322 | 41.315001 | 68.913856 56 | 5.234613 | 8.992222 | 15.367412 | 26.129341 | 44.207052 | 74.426965 57 | 5.391651 | 9.351910 | 16.135783 | 27.697101 | 47.301545 | 80.381122 58 | 5.553401 | 9.725987 | 16.942572 _| 29.358927 | 50.612653 | 86.811612 59 [5.720003 | 10.115026 | 17.789701 | 31.120463 | 54.155539 | 93.756540 60 | 5.891603 | 10.519627 | 18.679186 | 32.987691 _ | 57.946427 | 101.257064 61 | 6.068351 | 10.940413 | 19.613145 | 34.966952 _| 62.002677 | 109.357629 62 | 6.250402 | 1.378029 | 20.593802 | 37.064969 | 66.342864 | 118.106239 63 | 6.437914 | 1.833150 | 21.623493 | 39.288868 | 70.986865 | 127.554738 64 | 6.631051 | 12.306476 | 22.704667 | 41.646200 _| 75.955945 | 137.759117 65 | 6.829983 | 12.798735 | 23.839901 | 44.144972 | 81.272861 | 148.779847 66 | 7.034882 | 13.310685 | 25.031896 | 46,793670 | 86.961962 | 160.682234 Interest Rates 191Business Mathematics 192 67 | 7.245929 | 13.843112 | 26.283490 | 49.601290 | 93.049299 | 173.536813 68 | 7.463307 | 14.396836 | 27.597665 | 52.577368 | 99.562750_| 187.419758 69 | 7.687206 | 14.972710 | 28.977548 | 5.732010 | 106.532142 | 202.413339 70 | 7.917822 _| 15.571618 | 30.426426 | 59.075930 | 113.989392 | 218.606406 71 | 8.155357 _| 16.194483 | 31.947747 | 62.620486 | 121.968650 | 236.094918 72.| 8.400017 | 16.842262 | 33.545134 | 66.377715 | 130.506455 | 254.982512 73 | 8.652018 | 17.515953 [35.222391 | 70360378 | 139.641907 | 275.381113 74 [8.911578 | 18.216591 [36.983510 | 74582001 | 149.416840 | 297.411602 75 | 9.178926 | 18.945255 | 38.832686 | 79.056921 | 159.876019 | 321.204530 76 | 9.454293 | 19.703065 | 40.774320 | 83.800336 | 171.067341 | 346.900892 77 | 9.737922 _| 20.491187 | 42.813036 | 88.828356 | 183.042055 | 374.652964 78 | 10.030060 | 21.310835 | 44.953688 | 94.158058 | 195.854998 | 404.625201 79 | 10.330962 | 22.163268 | 47.201372 | 99.807541 | 209.564848 | 436.995217 80 | 10.640891 | 23.049799 | 49.561441 | 105.795993 | 224.234388 | 471.954834* and e* value table € 0.00 1.0000 1.0000 0.01 1.0101 0.99005 0.02 1.0202 0.98020 0.03 1.0305 0.97045 0.04 1.0408 0.96079 0.05 1.0513 0.95123 0.06 1.0618 0.94176 0.07 1,0725 0.93239 0.08 1.0833 0.92312, 0.09 1.0942 0.91393 0.10 1.1052 0.90484 Ol 0.89583 0.12 4.1275 0.88692, 0.13 1.1388 0.87810 0.14 1.1503 0.86936 01s 1.1618 0.86071 0.16 1.1735 0.85214 0.17 1.1853 0.84366 0.18, 1.1972 0.83527 0.19 1.2092 0.82696 0.20 1.2214 0.81873 0.21 1.2337 0.81058 0.22 1.2461 0.80252 0.23 1.2586 0.79453 0.24 1.2712 0.78663 0.25 1.2840 0.77880 Interest Rates 193Business Mathematics 194 0.26 1.2969 0.7105 0.27 1.3100 0.76338 0.28 1.3231 0.75578 0.29 1.3364 0.74826 0.30 1.3499 0.74082 0.31 1.3634 0.73345 0.32 13771 0.72615 0.33 1.3910 0.71892 0.34 1.4049 0.71177 0.35 14191 0.70469 0.36 1.4333 0.69768 037 1.4477 0.69073 0.38 1.4623 0.68386 0.39 1.4770 0.67706 0.40 14918 0.67032