## Mathematics of Investment |

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### Contents

Simple Interest and Simple Discount | 1 |

Compound Interest | 8 |

Equation of Value | 15 |

Copyright | |

16 other sections not shown

### Common terms and phrases

1-year term policy accumulated agrees to pay amortization schedule annual installments annual payment annuity consisting annuity due bears interest bond pays dividends book value borrower Building and Loan capitalized cost compound amount compound interest computed conversion period converted semi-annually debt Definition dividend date dividend period dividends payable equal payments Example Exercise Find the amount Find the annual Find the present Find the price Find the probability Find the purchase Formula geometrical progression Hence interest at 04 interest payable maturity money is worth months nominal rate number of conversion number of payment ordinary annuity ordinary whole payable annually payable semi-annually payment interval present value purchase price pure endowment rate of interest redemption price sets of obligations shares of Building simple discount simple interest single premium sinking fund Solution subscriber subscriber's investment temporary life annuity whole life annuity whole life insurance whole life policy worth 06 yield the investor