Calculation of Simple Interest|Simple interest |साधारण ब्याज|Concept in Valuation|Lecture -1 скачать в хорошем качестве

Calculation of Simple Interest|Simple interest |साधारण ब्याज|Concept in Valuation|Lecture -1

Business Mathematics/CONCEPT IN VALUATION Calculations of Simple Interest In any financial transaction, there are two parties involved: an investor, who is lending money to someone, and a debtor, who is borrowing money from the investor. The debtor must pay back the money originally borrowed, and also the fee charged for the use of the money, called interest. From the investor’s point of view, interest is income from invested capital. The capital originally invested in an interest transaction is called the principal. The sum of the principal and interest due is called the amount or accumulated value. Any interest transac- tion can be described by the rate of interest, which is the ratio of the interest earned in one time unit on the principal. P = the principal, or the present value of S, or the discounted value of S, or the proceeds. I = simple interest. S = the amount, or the accumulated value of P, or the future value of P, or the maturity value of P. r = annual rate of simple interest. t = time in years. Simple interest is calculated by means of the formula (1) I=PRT From the definition of the amount S we have S = P + I By substituting for I = Prt, we obtain S in terms of P, r, and t: S = P + Prt CALCULATIONS OF SIMPLE INTEREST Simple interest types of interest साधारण ब्याज #CALCULATIONSOFSIMPLEINTEREST #Simpleinterest #typesofinterest #साधारणब्याज