Compound Interest

What is Compound Interest?

When you borrow money from a bank, you pay interest. Interest is really a fee charged for borrowing the money, it is a percentage charged on the principle amount for a period of a year - usually.
If you want to know how much interest you will earn on your investment or if you want to know how much you will pay above the cost of the principal amount on a loan or mortgage, you will need to understand how compound interest works.
* Compound interest is paid on the original principal and on the accumulated past interest.

What Is About Bussiness Maths?

• Math for Business and Life provides up-to-date ways of solving real-life problems. As the title implies, the text explores not only business math, but also consumer math applications. Math for Business and Life is one of the industry leaders. Here's why, in our opinion, it's having such great success.
  First, we have kept the text simple. Concepts are introduced one at a time, in a logical sequence. The author uses plain, simple language, without being "wordy".
  Second, the text is friendly. Many people consider "math" to be a four-letter word. To alleviate fear, the author uses a friendly, conversational writing style.
  Third, the text is real-life. Many texts use contrived problems. Math for Business and Life is full of realistic, down-to-earth situations, and is stuff that can really be used.
  Next, we are careful to listen. For each new edition we get input from hundreds of instructors. As a result, we have a text and support material that instructors and students really want.
  Finally, Olympus Publishing Company has a top-notch team of graphic artists, photographers, reviewers, copy editors, proofreaders, accuracy-checkers, compositors, Web designers, and faculty support personnel.

CHAPTER 5-Trade and Cash Discout

Trade Discount-difference between the list price and the net price

Amount of trade discount=list price x trade discount

• Formula for Calculating Net Price

NP=L(1-r)

NP=net price

L=List pice

r%=Trade discount

from net price=list price -trade discount

NP=L - Lr

• Formula for Calculating the net price for a chain discount

NP=L(1 - r i) (1 - r2) (1 - r3)

• Single Discount Equivalent

r=1 -(1-r1) (1 - r2) (1 - r3)

Chapter 2-SIMPLE INTEREST

Simple Interest Formula

simple interest formula is the interest calculated on the original principal for the entire period, it is borrowed or invested. It is the product of the principle multiplied by the rate and time, this may stated as the formula.

I=Prt

I=simple interest P=principal r=rate of simple interest t=time/term in years

Simple Amount Fomula
-sum of the original principal and the interest earned.

S=P(1+rt)

-where S is simple amount

my first articlez

fulamak..what a exciting day,this is my first blog for biznes maths..hihi..in third july me and my clazmate,were learn how to create our own learning blog.