Chapter 8: Key Concepts Summary
Key Concepts Summary
8.1: Principal, Rate, Time
- Calculating the amount of simple interest either earned or charged in a simple interest environment
- Calculating the time period when specific dates or numbers of days are involved
- Calculating the simple interest amount when the interest rate is variable throughout the transaction
8.2: Moving Money Involving Simple Interest
- Putting the principal and interest together into a single calculation known as maturity value
- Altering a financial agreement and establishing equivalent payments
8.3: Application: Savings Accounts and Short-Term GICs
- How to calculate simple interest for flat-rate and tiered savings accounts
- How to calculate simple interest on a short-term GIC
8.6 Application: Treasury Bills and Commercial Papers
- The characteristics of treasury bills
- The characteristics of commercial papers
- Calculating the price of T-Bills and commercial papers
- Calculating the yield of T-Bills and commercial papers
