Financial Applications of Sequences and Series

Question 1

What is the formula for simple interest

Answer 1

I = PRN (p=principal, r=rate per unit time n)

Question 2

Simple interest gives a…

Answer 2

AP with a = PR and d=PR

Question 3

How to find the total amount (simple interest)

Answer 3

Calculate interest and add the principal

Question 4

Compound interest formula

Answer 4

An = P(1+R)^n

Question 5

Compound interest gives a…

Answer 5

GP with a = P(1+R) and r=1+R

Question 6

To find the interest (compound interest)

Answer 6

Subtract the principle from the final amount

Question 7

Depreciation formula

Answer 7

An = P(1-R)^n

Question 8

How to find the future value of an investment scheme

Answer 8

Find what each instalment will amount to as it earns compound interest (sub n into formula)
Form a GP from 1st year to nth year
Find sum of these with the formula for the sum of a GP

Question 9

The amount of money still owing at the end of n units of time is:

Answer 9

An = (principle + interest) - (instalments +interest)