Interest And Depreciation

Question 1

Simple interest formula

Also called flat interest

Answer 1

I= prn

I is simple interest
P is principal
R is interest rate per time period as a decimal
N is number of time periods

A = p + I

Question 2

Compound interest formula

Answer 2

A = p(1+r)^n

I = A-p

Question 3

Term payment

Answer 3

Find deposit paid
Find balance owing
Find interest charged on balance
Find total to be repaid (balance plus interest)
Amount for each instalment (total divided by number of instalments)
Total price (total to be repaid plus deposit)