Financial mathematics for Grade: 10, 11 and 12

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Financial mathematics for Grade: 10, 11 and 12

  1. 1. 201201797 • Mr TN MBHAMALI • MATHEMATICS FOR GRADE 10-12 201201797 TN MBHAMALI 09/05/2013 1
  2. 2. Financial Mathematics FOR Grade 10 – 12 201201797 TN MBHAMALI 14/02/2014 2
  3. 3. Learning Style • allocate sufficient study time • briefly revise the prerequisite material • attempt every guided exercise and most of the other exercises 201201797 TN MBHAMALI 14/02/2014 3
  4. 4. Content • Content Simple Interest 201201797 TN MBHAMALI Compound Interest 14/02/2014 4
  5. 5. Working with Simple Interest 201201797 TN MBHAMALI 14/02/2014 5
  6. 6. Example: Working with Simple Interest 201201797 TN MBHAMALI 14/02/2014 6
  7. 7. CALCULATING FUTURE VALUE (FV) 201201797 TN MBHAMALI 14/02/2014 7
  8. 8. CALCULATING PRESENT VALUE (PV) 201201797 TN MBHAMALI 14/02/2014 8
  9. 9. CALCULATING Interest Rate ( ) 201201797 TN MBHAMALI 14/02/2014 9
  10. 10. CALCULATING THE TERM ( ) 201201797 TN MBHAMALI 14/02/2014 10
  11. 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 11
  12. 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 14/02/2014 12
  13. 13. WORKING WITH COMPOUND INTEREST 201201797 TN MBHAMALI 14/02/2014 13
  14. 14. CALCULATING FUTURE VALUE 201201797 TN MBHAMALI 14/02/2014 14
  15. 15. CALCULATING PRESENT VALUE 201201797 TN MBHAMALI 14/02/2014 15
  16. 16. CALCULATING Interest Rate ( ) 201201797 TN MBHAMALI 14/02/2014 16
  17. 17. CALCULATING THE TERM ( ) 201201797 TN MBHAMALI 14/02/2014 17
  18. 18. The end OF the slides for Today!!!!!!! THANK YOU!!! 201201797 TN MBHAMALI 14/02/2014 18

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