Maturity Value Of A Loan Or An Investment参考.ppt

Chapter 6 SIMPLE INTEREST 6.3 Maturity Value Of A Loan Or An Investment Maturity Value (simple interest) S=p+I and I= =p(1+rt) Example 6.3 A: Calculating The Maturity Value Celia makes an investment by lending $1500 to Chuck for 8 months at an interest rate of 9.25% pa. What is the maturity value of the investment/loan? Use I=prt and S=P+I Example 6.3 B: Calculating The Principal What amount of money would have to be invested at pa to grow to $10,000 after 91 days? r=10.75%, S=$10,000, t= years S=P(1+rt) p=$9738.98 The required investment is $9738.98. Example 6.3 C: Calculating The Interest Rate Mrs.Falk has enough baking flour on hand to last another 4 weeks. However, her favourite brand is on special this week at $5.95 per bag instead of the regular price of $6.95 per bag. If she “invests” $5.95 today to avoid spending $6.95 in 4 weeks, what simple annual interest rate does she earn, in effect, on her “investment”? P=$5.95 S=$6.95 t=28/365 years I=S-P=$6.95-$5.95=$1 Mrs.Falk has a 219% annual rate of return during the 4-week period. Example 6.3D Calculating The Maturity Values Of Multiple Investments Made On Different Dates What will be the combined maturity value on January 17 of $4000 invested on (the previous) September 28, $5000 invested on November 1, and $6000 invested on December 8 if A, All three investments earn 6% pa? B, The three investments earn 7%, , and 6%,respectively? A, All three investments earn 6% pa From Sept.28 to Jan.17 ,there is S1=p(1+rt)= From Nov.1 to Jan.17 , there is S2= p(1+rt)= From Dec.8 to Jan.17 is S3= p(1+rt)= S=S1+ S2+ S3 =$15,175.73 B,In this case, the three investments earn 7%, , and 6%, respectively. * * When a loan or an i