1. 201201797
• Mr TN MBHAMALI
• MATHEMATICS FOR
GRADE 10-12
201201797
TN MBHAMALI
09/05/2013
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2. Financial Mathematics
FOR
Grade 10 – 12
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TN MBHAMALI
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3. Learning Style
• allocate sufficient study time
• briefly revise the prerequisite material
• attempt every guided exercise and most of the other
exercises
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TN MBHAMALI
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4. Content
• Content
Simple
Interest
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TN MBHAMALI
Compound
Interest
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5. Working with Simple
Interest
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6. Example: Working with Simple Interest
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7. CALCULATING FUTURE VALUE (FV)
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8. CALCULATING PRESENT VALUE (PV)
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9. CALCULATING Interest Rate ( )
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10. CALCULATING THE TERM ( )
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11. WORKING WITH COMPOUND INTEREST
•
Compound interest is interest paid on the original investment as well as on
the interest that you have earned previously.
•
Simple interest is only earned on the original principal.
201201797
TN MBHAMALI
14/02/2014
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12. R100 invested at 10% annually
Year
Simple Interest
Compound interest
1
R100 + R10 = R110
R100 + R10 = R110
2
R110 + R10 = R120
R110 + R11 = R121
3
R120 + R10 = R130
R121 + R12,10 = R133,10
4
R130 + R10 = R140
R133,10 + R13,31 = R146,41
5
R140 + R10 = R150
R146,41 + R14,64 = R161,05
10
R190 + R10 = R200
R235,79 + R23,58 = R259,37
50
R590 + R10 = R600
R10 671,90 + R1 067,19 = R11 739,09
201201797
TN MBHAMALI
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13. WORKING WITH COMPOUND INTEREST
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14. CALCULATING FUTURE VALUE
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15. CALCULATING PRESENT VALUE
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16. CALCULATING Interest Rate ( )
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17. CALCULATING THE TERM ( )
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18. The end OF the slides for
Today!!!!!!!
THANK
YOU!!!
201201797
TN MBHAMALI
14/02/2014
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