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Compound Interest

Compound Interest. congeniality And Concept.

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Compound Interest

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  1. Compound Interest

  2. congeniality And Concept • If somebody save in bank and bank give flower P% one year, by the end of per annum the money which deposited in bank will increase with its flower. If flower money is not taken hereinafter the saving flower money enhanced direct to saving from the beginning and become n new saving amount to a period of/to next flower, referred as by such flower of compound interest

  3. Example : Capital of equal to Rp 4.000.000,- profited by on the basis of compound interest 4%per year. How big that capital by the end of year of third Reply

  4. compound interest Calculation For example. Capital as much M saved in bank with compound interest i = P% per a period of/to flower, each;every period will increase to become the following Mn = M(1 + i)n Boldness Mn = Capital after n time / final value M = Capital of early i = flower percentage n = sum up a period of/to flower

  5. Follow the example of to count final value of capital • Capital of equal to Rp 200.000,- kept by bank with compound interest 4,5% one year. Whether/What capital after 5 year • Reply • Is known M = 200.000; i = 0,045; n = 5

  6. M5 = 200.000 (1 + 0,045)5 = 200.000 (1,045)5= 200.000 (1,246181938) = 249.236,39Become, final value after 5 year becomeRp 249.236,39

  7. Counting final Value of capital with a period of/to fraction flower • public Formula Na = Mn (1 + i)napplying to n integer. However, besides n in the form of integer, can is also happened by n in the form of number of fraction in halini n turned into • final Value formula of capital

  8. example • Capital Rp 800.000,- profited bigly is compound interest 5% one year. After final 6 30 value day year of that money is taken altogether. Whether/What to the number of Nawhat is accepted • Reply • Is known M = 800.000, P = 5%; i = 0,05; n = 6 year 30 day = 6 30/360 year

  9. Counting Value of Capital Cash • Assess capital cash can be written down

  10. example • Is known M = Rp 100.000,-; P = 2%; i = 0,02 ; n = 8

  11. Counting Value of Cash of capital with a period of/to fraction flower • Its formula can be written down the following

  12. example • A merchant borrow money to bank [of] during 8 month;moon 20 day [of] under colour of flower 2,5% one month. After used up the duration really that money [is] brought back [by] 5.000.000. whether/what big [of] loan (Nt)? • ask • Its know: Mn = 5.000.000; i = 0,025; n = 8 month 20 day

  13. Thank You

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