MATA32H3- Final Exam Guide - Comprehensive Notes for the exam ( 71 pages long!)

• School: UTSC
• Department: Mathematics
• Course: MATA32H3
• Professor: Raymond Grinnell

Document Summary

P principle: money invested now r periodic interest rate. Interest paid per compounding period: stated in percentage or annual rate, note: must convert percentage into a decimal n number of compounding periods, counts number of times interest is paid on investment. S compound amount: amount of money we have at the end. Interest is paid exactly at the end of compounding periods: only at the end of compounds. **for one compound period, the principle (p) plus the interest on that. 1st compound 1 + pr = (1 + ) (principle + interest on principle) 2nd compound 1 + + 1 : = 1 + 1 + = (1 + )! Note: in applications: we often have apr a" (annual percentage rate) and frequency k" of compounding; and, how often interest is paid in a year, a time t" period. Legend: a apr for period as follows k compounding frequency per year (annually) t number of years for a particular period.