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Quant04. Simple and Compound Interest Including Annuity – Applications
1.
CPTSuccess Revision Notes
– Quantitative Aptitude Chapter 4. Simple and Compound Interest including Annuity – Applications
2.
3.
Interest – is
the price paid by a borrower for the use of a lender’s money
4.
Principal – is
the initial value of lending
5.
Rate of Interest
– the percentage rate at which the interest is charged for a defined length of time for use of principal
6.
Accumulated Amount –
is the final value of an investment© Revision Notes – Quantitative Aptitude CPTSuccess www.cptsuccess.com
7.
8.
9.
10.
11.
Amount paid
(received) must be constant over the period of annuity, and
12.
Time interval
between two consecutive payments (or receipts) must be the same© Revision Notes – Quantitative Aptitude CPTSuccess www.cptsuccess.com
13.
14.
15.
16.
Step 2:
Multiply the result by 1 + i© Revision Notes – Quantitative Aptitude CPTSuccess www.cptsuccess.com
17.
18.
19.
20.
21.
22.
23.
Valuation of BondsA
bond is a debt security in which the issuer owes the holder a debt and is obliged to repay the principal and interest. Present value concept helps to decide whether or at what rates bonds should be purchased to achieve a specified rate of return. © Revision Notes – Quantitative Aptitude CPTSuccess www.cptsuccess.com
24.
CPTSuccess
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