FINANCE
simple interest : A :-P / I -1in) straight line depreciation : A =
PG -
in)
" "
compound interest : A- =P / Iti ) reducing balance depreciation :
A =P / 1- it
n
future value =
x Iti -
l
i
-
n
Present value = x 1 ( Iti )
i
Balance Pll in Citi )ⁿ I
Outstanding x
-
= +
-
i
Last payment
=
OB after last full payment ✗ ( Iti )
Sinking fund I use depreciation to find out what old item will cost
=
2 what new equipment will cost in future (use infestation)
3
(a) diff between these
.
two values
(b) future value
m
Effective and nominal interest :
I + ieff =
1 + inom
m
simple interest : A :-P / I -1in) straight line depreciation : A =
PG -
in)
" "
compound interest : A- =P / Iti ) reducing balance depreciation :
A =P / 1- it
n
future value =
x Iti -
l
i
-
n
Present value = x 1 ( Iti )
i
Balance Pll in Citi )ⁿ I
Outstanding x
-
= +
-
i
Last payment
=
OB after last full payment ✗ ( Iti )
Sinking fund I use depreciation to find out what old item will cost
=
2 what new equipment will cost in future (use infestation)
3
(a) diff between these
.
two values
(b) future value
m
Effective and nominal interest :
I + ieff =
1 + inom
m
