Suppose you invest $\$2000$ in the bank. The money attracts an interest rate of $10\%$ per annum. The interest is added to the investment each year, so the total interest increases. The percentage increase each year is $10\%$, so at the end of the year, you will have $110\%$ of the value at its start. […]

# Tag Archives: Compound Interest

# Compound Interest | Series and Sequences

Compound Interest is being used to calculate the total investment across over time. Suppose John invests $1000 in the bank. He leaves the money in the bank for 4 years, and are paid an interest rate of 10% per annum. The interest is added to his investment each year, so the total value increases. The […]

# Geometric Series for Time Payments

Time payments are calculated based on Geometric Series for reducible compound interests. Basically geometric series formula is used for handling this situation. Worked Examples of Geometric Series for Time Payments 1 John takes out a loan of \($100 000\) on 1st January 2001 for a home loan. Interest is charged at 12 % per annum […]