1. Mathematics of Finance
Chapter 5
Mathematics of Finance
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2. Simple Interest and Discount
Section 5.1
Simple Interest and Discount
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Example:
To furnish her new apartment, Maggie Chan borrowed $4000 at 3% interest from her parents for 9 months. How much interest will she pay?
Solution:
Use the formula with
Thus, Maggie pays a total of $90 in interest.
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