21 SECTION 2.1 ) SIMPLE INTEREST AND COMPOUND

!"#$%&'()*+(,(!%-./"(%'$"0"!$(1'2(#&-.&3'2(%'$"0"!$(
!
2456768697(:.;67<6=>? (%784;4A8 (!6B=?4(%784;4A8 (CD8D;4(E>?D4F(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
!
!6B=?4(%784;4A8(C9;BD?>(
(
(
(
(
(
(
(
(
(
(
!
CD8D;4(E>?D4(C9;BD?>(:!6B=?4(%784;4A8F(
(
(
(
(
(
(
(
(
(


"G>B=?4(+(
"#$%!&'(!&)&*+!*,)-$&!%-(!)$!*!+)*$!).!/011!*&!23!4#,5+(!#$&(6(4&!*&!&'(!($%!).!7!,)$&'48!
(
(
(
(
(
(
(
(
(
(
(
!
"G>B=?4()(
9.!:)-!;*$&!&)!(*6$!*$!*$$-*+!6*&(!).!<13!)$!:)-6!#$=(4&,($&4>!');!,-?'! &)!&'(!$(*6(4&!?($&A!
4')-+%!:)-!5*:!.)6!*!$)&(!&'*&!;#++!B(!;)6&'!/C111!#$!2!,)$&'4D!
(
(
(
(
(
(
(
(
(
(
(
!
"G>B=?4(H(
E6(*4-6:!B#++4!*6(!)$(!).!&'(!#$4&6-,($&4!&'(!F8G8!E6(*4-6:!H(5&!-4(4!&)!.#$*$?(!&'(!5-B+#?!%(B&8!
9.!:)-!B-:!*!<01I%*:!&6(*4-6:!B#++!;#&'!*!,*&-6#&:!=*+-(!).!/<1>111!.)6!/2>02J8K0>!;'*&!*$$-*+!
4#,5+(!#$&(6(4&!6*&(!;#++!:)-!(*6$D!
(
(
(
(
(
(
(
(
(
(
(
(
(
!
!


2456768697(:#9B=9D7I(%784;4A8 (.4;69I6<(0>84 (#9B=9D7I67J(.4;69IAF(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
!
CD8D;4(E>?D4(C9;BD?>(:#9B=9D7I(%784;4A8F(
(
(
(
(
(
(
(
(
(
(
(
(
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!


"G>B=?4(K(
L)-!;*$&!&)!#$=(4&!/<111!*&!03!#$&(6(4&!.)6!C!:(*648!!
!
*8A!M);!,-?'!,)$(:!;#++!:)-!'*=(!#.!#$&(6(4&!#4!?),5)-$%(%!4(,#*$$-*++:D!
!
!
!
!
!
B8A!M);!,-?'!,)$(:!;#++!:)-!'*=(!#.!#$&(6(4&!#4!?),5)-$%(%!,)$&'+:D!
!
!
!
!
!
?8A! M);!,-?'!,)$(:!;#++!:)-!'*=(!#.!#$&(6(4&!#4!?),5)-$%(%!%*#+:D!
!
!
!
!
(
!
"G>B=?4(L(
M);!,-?'!4')-+%!:)-!#$=(4&!$);!*&!<13!#$&(6(4&!?),5)-$%(%!N-*6&(6+:!&)!'*=(!/0111!&);*6%!
&'(!5-6?'*4(!).!*!?*6!#$!C!:(*64D!
(
(
(
(
(
(
(
(
!
"G>B=?4(M(
9.!,)$(:!5+*?(%!#$!*!?(6&*#$!*??)-$&!&6#5+(4!#$!O!:(*64!;'($!#$&(6(4&!#4!?),5)-$%(%!N-*6&(6+:>!
&'($!;'*&!#4!&'(!*$$-*+!#$&(6(4&!6*&(D!
(
(
(
(
(
(
(
(
!


2456768697(:177D>?(.4;<478>J4(N64?I ("554<86O4(177D>?(0>84F(
(
(
(
(
(
(
(
(
(
(
!
177D>?(.4;<478>J4(N64?I(C9;BD?>(
(
(
(
(
(
(
(
(
(
(
!
"G>B=?4(P(
P!/<1>111!#$=(4&,($&!#$!*!5*6&#?-+*6!Q6);&'I)6#($&(%!,-&-*+!.-$%!)=(6!*!6(?($&!<1!:(*6!5(6#)%!
;)-+%!'*=(!Q6);$!&)!/<OR>1118!S'*&!*$$-*+!$),#$*+!6*&(!?),5)-$%(%!,)$&'+:!;)-+%!56)%-?(!
&'(!4*,(!Q6);&'D!S'*&!#4!&'(!*$$-*+!5(6?($&*Q(!:#(+%D!
!
!
!
!
!
!
!
!
!
!
(
(
(
(
(
(
(
(
!


"G>B=?4(Q(
"#$%!&'(!PTLU4!.)6!(*?'!).!&'(!B*$V4!#$!&'(!.)++);#$Q!&*B+(!*$%!?),5*6(!&'(!WH48!
!
#"0$%C%#1$"!(&C(2".&!%$(
R1'S(
01$"(
#&-.&3'2"2(
P%=*$&*!
782C3!
X)$&'+:!
H((5Y6(($!
782R3!
H*#+:!
W'*6&(6!Z$(!
782K3!
N-*6&(6+:!
!
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
!
"G>B=?4(T(
P!4*=#$Q4!*$%!+)*$!;*$&4!&)!)..(6!*!WH!;#&'!*!,)$&'+:!?),5)-$%#$Q!6*&(!&'*&!'*4!*$!(..(?&#=(!
*$$-*+!6*&(!).!K8C38!S'*&!*$$-*+!$),#$*+!6*&(!?),5)-$%(%!,)$&'+:!4')-+%!&'(:!-4(D!
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(


!"#$%&'()*)(,(C3$30"(E1/3"(&C(1'(1''3%$N(
(
2456768697(:177D68U (&;I67>;U(177D68UF(
(
(
(
(
(
(
(
(
(
(
(
CD8D;4(E>?D4(:&;I67>;U(177D68UF(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
"G>B=?4(+(
S'*&!#4!&'(!=*+-(!).!*$!*$$-#&:!*&!&'(!($%!).!O1!:(*64!#.!/O111!#4!%(5)4#&(%!(*?'!:(*6!#$&)!*$!
*??)-$&!(*6$#$Q!08C3!#$&(6(4&!?),5)-$%(%!*$$-*++:D!M);!,-?'!).!&'(!=*+-(!#4!#$&(6(4&D!
(
(
(
(
(
(
(
(
(
(
(
(
(
(


"G>B=?4()(
P!5(64)$!,*V(4!,)$&'+:!%(5)4#&4!).!/<11!#$&)!*$!)6%#$*6:!*$$-#&:8!P.&(6!J1!:(*64>!&'(!*$$-#&:!#4!
;)6&'!/<R1>1118!S'*&!*$$-*+!6*&(!?),5)-$%(%!,)$&'+:!'*4!&'#4!*$$-#&:!(*6$(%!%-6#$Q!&'#4!J1I
:(*6!5(6#)%D!!
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
2456768697(:!67V67J(CD7IF(
(
(
(
(
(
(
'984(
(
(
(


"G>B=?4(H(
P!?),5*$:!(4&#,*&(4!&'*&!#&!;#++!'*=(!&)!6(5+*?(!*!5#(?(!).!(N-#5,($&!*&!*!?)4&!).!/011>111!#$!C!
:(*648!E)!'*=(!&'#4!,)$(:!*=*#+*B+(!#$!C!:(*64>!*!4#$V#$Q!.-$%!#4!(4&*B+#4'(%!B:!,*V#$Q!(N-*+!
,)$&'+:!5*:,($&4!#$&)!*$!*??)-$&!5*:#$Q!R8R3!?),5)-$%(%!,)$&'+:8!M);!,-?'!4')-+%!(*?'!
5*:,($&!B(D!M);!,-?'!#$&(6(4&!#$!(*6$(%!%-6#$Q!&'(!+*4&!:(*6D!
(
(
(
(
(
(
(
(
(
(
(
(
(
(
"G>B=?4(K(
[*$(!%(5)4#&4!/O111!*$$-*++:!#$&)!*!\)&'!9\P!&'*&!(*6$4!R80C3!?),5)-$%(%!*$$-*++:8! E'(!
#$&(6(4&!(*6$(%!B:!*!\)&'!9\P!#4!&*]!.6((8A!H-(!&)!*!?'*$Q(!#$!(,5+):,($&>!&'(4(!%(5)4#&4!4&)5!
*.&(6!<1!:(*64>!B-&!&'(!*??)-$&!?)$&#$-(4!&)!(*6$!#$&(6(4&!-$&#+![*$(!6(&#6(4!OC!:(*64!*.&(6!&'(!+*4&!
%(5)4#&!;*4!,*%(8!M);!,-?'!#4!#$!&'(!*??)-$&!;'($![*$(!6(&#6(4D!
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(


!"#$%&'()*H(,(.0"!"'$(E1/3"(&C(1'(1''3%$N(
(
.;4A478(E>?D4(:&;I67>;U(177D68UF(
(
(
(
(
(
(
(
(
(
(
(
"G>B=?4(+(
S'*&!#4!&'(!56(4($&!=*+-(!).!*$!*$$-#&:!&'*&!5*:4!/O11!5(6!,)$&'!.)6!C!:(*64!#.!,)$(:!#4!;)6&'!
R3!?),5)-$%(%!,)$&'+:D!
(
(
(
(
(
(
(
"G>B=?4()(
\(?($&+:>!^#$?)+$!_($(.#&!^#.(!)..(6(%!*$!)6%#$*6:!*$$-#&:!&'*&!(*6$(%!R8C3!?),5)-$%(%!
*$$-*++:8!P!5(64)$!5+*$4!&)!,*V(!(N-*+!*$$-*+!%(5)4#&4!#$&)!&'#4!*??)-$&!.)6!OC!:(*64!#$!)6%(6!
&)!&'($!,*V(!O1!(N-*+!*$$-*+!;#&'%6*;*+4!).!/OC>111>!6(%-?#$Q!&'(!B*+*$?(!#$!&'(!*??)-$&!&)!
`(6)8!M);!,-?'!,-4&!B(!%(5)4#&(%!*$$-*++:!&)!*??-,-+*&(!4-..#?#($&!.-$%4!&)!56)=#%(!.)6!&'(4(!
5*:,($&4D!M);!,-?'!&)&*+!#$&(6(4&!#4!(*6$(%!%-6#$Q!&'#4!($&#6(!7CI:(*6!56)?(44D(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(


(
!"#$%&'()*K(,(R&00&W%'X(
(
2456768697(:!6B=?4(%784;4A8(/9>7A (1IIY&7(/9>7AF(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
"G>B=?4(+(
G-`#(!B)66);4!/<1>111!.6),!'(6!5*6($&4!&)!B-:!*!?*68!G'(!*Q6((4!&)!5*:!&'(,!#$!(N-*+!,)$&'+:!
5*:,($&4!)=(6!&'(!$(]&!C!:(*64!;#&'!*!4#,5+(!#$&(6(4&!6*&(!).!C38!M);!,-?'!;#++!G-`#(!5*:!(*?'!
,)$&'D!
(
(
(
(
(
(
(
(
(
(
(
2456768697(:Z4;9Y#9D=97(R97IA (26A<9D784I(/9>7F(
(
(
(
(
(
(
(
(
(
(
(
(


(
26A<9D784I(/9>7(
(
(
(
(
(
(
(
(
(
(
(
(
"G>B=?4()(
P!+)*$!#4!%#4?)-$&(%!)=(6!J1!,)$&'4!*&!*$!*$$-*+!4#,5+(!#$&(6(4&!6*&(!).!<138!
*8A!"#$%!&'(!56)?((%4!#.!&'(!*,)-$&!).!&'(!+)*$!#4!/<C118!
!
!
!
!
!
!
!
B8A!"#$%!&'(!*,)-$&!).!&'(!+)*$!#.!&'(!56)?((%4!*6(!/<C118!
(
(
(
(
(
(
(
(
2456768697(:#97O478697>?(/9>7A (1B9;86[67JF(
(
(
(
(
(
(
(
(
(
(
(
(
(


#97O478697>?(/9>7(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
"G>B=?4(H(
P44-,(!&'*&!:)-!B-:!*!&(+(=#4#)$!4(&!.)6!/011!*$%!*Q6((!&)!5*:!.)6!#&!#$!<0!(N-*+!,)$&'+:!
5*:,($&4!*&!<8C3!#$&(6(4&!5(6!,)$&'!)$!&'(!-$5*#%!B*+*$?(8!M);!,-?'!*6(!:)-6!5*:,($&4D!
M);!,-?'!#$&(6(4&!;#++!:)-!5*:D!
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(


"G>B=?4(K(
L)-!'*=(!$(Q)&#*&(%!*!56#?(!).!/OC>O11!.)6!*!$(;!_#4)$!5#?V-5!&6-?V8!a);!:)-!,-4&!?'))4(!
B(&;(($!13!.#$*$?#$Q!.)6!70!,)$&'4!)6!*!/J111!6(B*&(8!9.!:)-!?'))4(!&'(!6(B*&(>!:)-!?*$!
)B&*#$!*!+)*$!.)6!&'(!B*+*$?(!*&!78C3!#$&(6(4&!?),5)-$%(%!,)$&'+:!.)6!70!,)$&'4!*&!:)-6!?6(%#&!
-$#)$8!S'#?'!)5&#)$!4')-+%!:)-!?'))4(D!
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
"G>B=?4(L(
9.!:)-!B)66);!/C11!&'*&!:)-!*Q6((!&)!6(5*:!#$!4#]!(N-*+!,)$&'+:!5*:,($&4!*&!<3!#$&(6(4&!5(6!
,)$&'!)$!&'(!-$5*#%!B*+*$?(>!');!,-?'!).!(*?'!,)$&'+:!5*:,($&!#4!-4(%!.)6!#$&(6(4&!*$%!');!
,-?'!#4!-4(%!&)!6(%-?(!&'(!-$5*#%!B*+*$?(D!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
!
(


"G>B=?4(M(
P!?)-5+(!5+*$4!&)!B-:!*!'),(!.)6!/O11>1118!E'(:!'*=(!5-&!/C1>111!%);$!*$%!;#++!)B&*#$!*!
,)6&Q*Q(!.)6!/<C1>111!*&!*$!#$&(6(4&!6*&(!).!<18C3!?),5)-$%(%!,)$&'+:8!E'(:!,-4&!%(?#%(!
;'(&'(6!&)!*55+:!.)6!*!J1I:(*6!)6!*!<CI:(*6!,)6&Q*Q(8!"#$%!&'(!,)$&'+:!5*:,($&!*$%!&)&*+!
#$&(6(4&!5*#%!.)6!B)&'!&'(!J1I:(*6!,)6&Q*Q(!*$%!&'(!<CI:(*6!,)6&Q*Q(8!!!
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(
(

