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Simple and Discount Interest Explained

The document discusses different types of interest such as simple interest, discount interest, and compound interest. It provides formulas for calculating simple interest, discount interest, loan proceeds, ordinary interest, exact interest, and compound interest. The document also discusses different types of propositions including universal, particular, singular, affirmative, negative, conjunction, disjunction, conditional, and biconditional propositions.

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25 views3 pages

Simple and Discount Interest Explained

The document discusses different types of interest such as simple interest, discount interest, and compound interest. It provides formulas for calculating simple interest, discount interest, loan proceeds, ordinary interest, exact interest, and compound interest. The document also discusses different types of propositions including universal, particular, singular, affirmative, negative, conjunction, disjunction, conditional, and biconditional propositions.

Uploaded by

annicarhynnie
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

SIMPLE INTEREST AND DISCOUNT

Simple interest- this is the amount of money that the borrower has to pay to the lender on top of the principal
amount. It is computed using the formula Is=PRT
P= principal amount
R=interest rate
T=time in years

Discount Interest- This is the amount of money that the borrower has to pay to the lender, however, this is an interest
that is paid on the date of the load/n is made. Id=Fdt
F= maturity value or the loan amount
d= discount interest rate
t=time in years

Loan Proceeds- the actual amount received by the borrower. Lp=F-Id

SIMPLE INTEREST Is=prt

PRINCIPAL AMOUNT IS UNKNOWN P=Is/rt

INTEREST RATE IS UNKNOWN I=Is/pt

TIME IS UNKNOWN T=Is/pr

DISCOUNT INTEREST Id=Fdt

MATURITY VALUE IS KNOWN F=Id/dt

DISCOUNT RATE IS UNKNOWN D=Id/ft

TIME IS UNKNOWN T=Id/fd

LOAN PROCEEDS Lp=F-Id

ORDINARY INTEREST- we assume that there are 360 days in a year. Oi=PR(t/360)
P= 50 000 r=0.12 t=300days=300/360years

EXACT INTEREST- we assume that there are 365 days in a year. Ei=PR(t/365)
P=50 000 r=0.12 t=300days=300/365years

COMPOUND INTEREST- the interest is computed on the principal and also on the accumulated past interest.
Compound amount or maturity value=P(1+j/m)^mt
Compound Interest-Ic=F-P
Periods- n=mt
Periodic rate- i=j/m

J-annual interest
m- frequency of interest payment per year
INTEREST PERIOD LENGTH OF PERIOD FREQUENCY OF INTEREST
PAYMENT PER YEAR(m)

Annually 1 year 1

Semiannually 6 months 2

Quarterly 3 months 4

Bimonthly 2 months 6

Monthly 1 month 12

ACTUAL TIME AND APPROXIMATE

Exact simple interest using actual time( actual number) Ie=Pr(D/365)

Exact simple interest using appro. time(30 days/month) Ie=Pr(D/365)

Ordinary simple interest using actual time( actual Io=Pr(D/360)


number)

Ordinary simple interest using appro. time(30 Io=Pr(D/360)


days/month)

P-principal amount?
r-simple interest
D-days

SIMPLE AND COMPOUND PROPOSITION

Simple proposition-a declarative sentence subject for affirmation or denial. Either true or false but cannot be both.
-cannot be broken down. It is a sentence with one subject and one predicate.
Compound Proposition-assembly of multiple statements.
-composed of two or more simple proposition
-connected using logical connectors like not,and,or,if-then

Type of categorical proposition description examples

Universal Proposition Taken in full extension(ALL) All quadrilaterals are polygon.

Particular Proposition Taken only in particular extension Some birds dont fly.

Singular Proposition Denotes a single person or thing A prime num has only two factors.

Fuck my life Universal Particular

Affirmative A I
All x is y Some x is y

negative E O
All x is not y Some x is not y
Fuck my life Logical connectors Logical operators

Negation Not p ~p

conjunction P and Q p^q

disjunction P or q pvq

conditional If p then q p→q

biconditional P if and only if q p↔q

Negation
p ~p

T F

F T
Conjunction
p q p^q

T T T

T F F

F T F

F F F
Disjunction
p q pvq

T T T

T F T

F T T

F F F
Conditional
p q p→q

T T T

T F F

F T T

F F T
Biconditional
p q p↔q

T T T

T F F

F T F

F F T

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