Chapter 9
Learning Objectives
- Differentiate between the concept of compound interest and simple interest.
- Calculate the future value and present value of investments and loans in compound interest applications using both the algebraic and financial calculator methods.
- Calculate equivalent payments that replace another payment or a set of payments.
- Calculate the effective and equivalent interest rates for nominal interest rates.
- Calculate periodic and nominal interest rates.
- Calculate the number of compounding periods and time period of an investment or loan.
