Apps. and Interpretation for IBDP Maths Ebook 1 | Page 82

Your Practice Set – Applications and Interpretation for IBDP Mathematics
Chapter
9
Financial Mathematics
SUMMARY POINTs
�
�
Compound Interest:
PV : Present value
r %: Interest rate per annum (per year)
n : Number of years
k : Number of compounded periods in one year
kn
� r �
FV �PV
�1�
� : Future value
� 100 k �
I �FV � PV : Interest
Inflation:
i % : Inflation rate
R % : Interest rate compounded yearly
( R�
i)%
: Real rate
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