Intrest

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Interest

By Anand MeraSkill.com

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Interest

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Index Basics of Interest Simple Interest Compound Interest SI & CI Combined Change in Interest Rate ERR Depreciation Annuity Buying decision Mistake Problem Š MeraSkill


Interest Basics

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Why do we pay Interest? Time Value of Money Opportunity cost Inflation Liquidity Preference Risk Factor

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Basic Terms Principal (P) Time (t) Rate of Interest (r) Interest (I) Amount (A)

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Example Amount Borrowed 10000 @ rate 10% Interest for 4 years

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Types of Interest Simple Interest Compound Interest

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Simple Interest

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Simple Interest Formula Interest (I) = Prt

Principal (P) Time (t) Rate of Interest (r)

Amount (A) =P+Prt

Interest (I) Amount (A)

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