Quant04. Simple and Compound Interest Including Annuity – Applications
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Quant04. Simple and Compound Interest Including Annuity – Applications
- 1. CPTSuccess Revision Notes – Quantitative Aptitude Chapter 4. Simple and Compound Interest including Annuity – Applications
- 3. Interest – is the price paid by a borrower for the use of a lender’s money
- 4. Principal – is the initial value of lending
- 5. Rate of Interest – the percentage rate at which the interest is charged for a defined length of time for use of principal
- 6. Accumulated Amount – is the final value of an investment© Revision Notes – Quantitative Aptitude CPTSuccess www.cptsuccess.com
- 11. Amount paid (received) must be constant over the period of annuity, and
- 12. Time interval between two consecutive payments (or receipts) must be the same© Revision Notes – Quantitative Aptitude CPTSuccess www.cptsuccess.com
- 16. Step 2: Multiply the result by 1 + i© Revision Notes – Quantitative Aptitude CPTSuccess www.cptsuccess.com
- 23. Valuation of BondsA bond is a debt security in which the issuer owes the holder a debt and is obliged to repay the principal and interest. Present value concept helps to decide whether or at what rates bonds should be purchased to achieve a specified rate of return. © Revision Notes – Quantitative Aptitude CPTSuccess www.cptsuccess.com
- 24. CPTSuccess