Financialmathematicsmethodology 140214062114-phpapp01
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This document contains slides on teaching financial mathematics for grades 10-12. It covers topics like simple interest, compound interest, and calculating future value, present value, interest rates, and terms for both simple and compound interest. Examples are provided to demonstrate working with simple interest. Tables compare the difference between simple and compound interest amounts over time. The document aims to provide guidance on learning styles and working through the content on interest calculations.
Financialmathematicsmethodology 140214062114-phpapp01
- 1. 201201797 ? Mr TN MBHAMALI ? MATHEMATICS FOR GRADE 10-12 09/05/2013 201201797 TN MBHAMALI 1
- 2. Financial Mathematics FOR Grade 10 ¨C 12 14/02/2014201201797 TN MBHAMALI 2
- 3. Learning Style ? allocate sufficient study time ? briefly revise the prerequisite material ? attempt every guided exercise and most of the other exercises 14/02/2014201201797 TN MBHAMALI 3
- 5. Working with Simple Interest 14/02/2014201201797 TN MBHAMALI 5
- 6. Example: Working with Simple Interest 14/02/2014201201797 TN MBHAMALI 6
- 7. CALCULATING FUTURE VALUE (FV) 14/02/2014201201797 TN MBHAMALI 7
- 8. CALCULATING PRESENT VALUE (PV) 14/02/2014201201797 TN MBHAMALI 8
- 9. CALCULATING Interest Rate ( ) 14/02/2014201201797 TN MBHAMALI 9
- 10. CALCULATING THE TERM ( ) 14/02/2014201201797 TN MBHAMALI 10
- 11. WORKING WITH COMPOUND INTEREST ? Compound interest is interest paid on the original investment as well as on the interest that you have earned previously. ? Simple interest is only earned on the original principal. 14/02/2014201201797 TN MBHAMALI 11
- 12. R100 invested at 10% annually Year Simple Interest Compound interest 1 R100 + R10 = R110 R100 + R10 = R110 2 R110 + R10 = R120 R110 + R11 = R121 3 R120 + R10 = R130 R121 + R12,10 = R133,10 4 R130 + R10 = R140 R133,10 + R13,31 = R146,41 5 R140 + R10 = R150 R146,41 + R14,64 = R161,05 10 R190 + R10 = R200 R235,79 + R23,58 = R259,37 50 R590 + R10 = R600 R10 671,90 + R1 067,19 = R11 739,09 14/02/2014201201797 TN MBHAMALI 12
- 13. WORKING WITH COMPOUND INTEREST 14/02/2014201201797 TN MBHAMALI 13
- 14. CALCULATING FUTURE VALUE 14/02/2014201201797 TN MBHAMALI 14
- 15. CALCULATING PRESENT VALUE 14/02/2014201201797 TN MBHAMALI 15
- 16. CALCULATING Interest Rate ( ) 14/02/2014201201797 TN MBHAMALI 16
- 17. CALCULATING THE TERM ( ) 14/02/2014201201797 TN MBHAMALI 17
- 18. The end OF the slides for Today!!!!!!! 14/02/2014201201797 TN MBHAMALI THANK YOU!!! 18