University:
University of Cambridge
Course:
0610 IGCSE | Biology
Academic year:

2023
Views:

150

Pages:

2
Author:

S. Hoovart

economy Money Dis Coming at normal Discounting Is Is a financial mechanism debtor optans the right to deday o for a depined period of timK Thu Charge Free In which a to a Creditor a the discount is usually Acosided With a discountrate Wich Also called the discount yield. the concept is Is Associated having Use with the • of the money for the period of time by the delay Payment. Money discounting • Discount - Future worht - Present Worth - The rate of discount is the amount on one of Principal per Unit time Letd: rate of discount d = 1-1 1 ti id Sample. IF P.1000 accumulates to o 15000 when Investerol at, a simple Interest for three year What is the rate of interest? J Sdation. F. P(1+in) 1500-1000C]+1 (3) (3)] = 0.1667 Or 16.67% Sample: you loan firm amount 1,1000,000 With ardte of Simple Interest Of 2010 loan bat the interest was dedacted from the loan at the time the money was borrowed. what is the actual rate of interest ?. Sdakon: merest. 0.20 (1.000.000) interest = 20.000 Amount Pecured 100000-20.000 80.000 80.000 (ⅰ) (1) 1.: 0.0225 1.25%