4 Simple Interest
Learning Objectives
- Demonstrate the concept of simple interest.
- Determine the number of days between two calendar days using the pre-programmed financial calculator method.
- Calculate the amount of interest, principal, time, interest rate, and maturity value of investments and loans.
- Calculate equivalent payments that replace another payment or a series of payments.
- Use simple interest in solving problems involving business applications such as savings accounts, short term guaranteed investment certificates (GICs), treasury bills, and commercial paper.
