The document outlines basic concepts of interest in finance, defining terms such as principal, rate of interest, and time. It also presents formulas for calculating interest and final amounts, as well as distinctions between ordinary and exact interest. The content is aimed at providing foundational knowledge in general mathematics related to finance.

1. General Mathematics

5. 𝐼 = 𝑃𝑟𝑡

6. Notation Terminology Definition
I Interest The payment for the use of borrowed
money or the amount earned on invested
money.
P Principal The amount borrowed or invested.
r Rate of Interest A fractional part of the principal that is
paid on loan or investment
t Time The number of years for which the
money is borrowed or invested
F Final amount or
maturity value
The sum of the principal and interest
earned within the time

7. Required Formulas
Interest ( I ) I = Prt
Final Amount (F) F = P + I
F = P( 1 + rt)
Principal (P) 𝑃 =
𝐼
𝑟𝑡
or P = F – I
Time ( t )
𝑡 =
𝐼
𝑃𝑟
Rate of interest ( r )
𝑟 =
𝐼
𝑃𝑡

13. Ordinary Interest: 𝐼 𝑜 = 𝑃𝑟
𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑑𝑎𝑦𝑠
360
Exact Interest: 𝐼 𝐸 = 𝑃𝑟
𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑑𝑎𝑦𝑠
365

18. THANK YOU
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