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CALCULUS 2 (BA) Assoc. Prof. Nguyen Dinh Dr. Nguyen Ngoc Hai
Department of mathematics
INTERNATIONAL UNIVERSITY, VNU-HCM

February 25, 2014

Assoc. Prof. Nguyen Dinh Dr. Nguyen Ngoc Hai

CALCULUS 2 (BA)

References Main textbook: M. L. Lial, R. N. Greenwell, N. P. Ritchey Calculus with Applications, 10ed. Pearson, Boston, 2012. Other textbooks: L. D. Hoffmann, G. L. Bradley, Calculus, Brief 10ed. McGraw-Hill, Boston, 2010.

Assoc. Prof. Nguyen Dinh Dr. Nguyen Ngoc Hai

CALCULUS 2 (BA)

Assoc. Prof. Nguyen Dinh Dr. Nguyen Ngoc Hai

CALCULUS 2 (BA)

Chapter 1 .

Mathematics of Finance

Contents 1. Compound Interest 2. Continuous Money Flow: Total money flow, present value, accumulated amount of money, continuous deposits. 3. Annuities 4. Amortizations and Sinking Funds

Assoc. Prof. Nguyen Dinh Dr. Nguyen Ngoc Hai

CALCULUS 2 (BA)

Simple and compound interest

• If you borrow money you have to pay interest on it. If you invest money in a deposit account you expect to earn interest on it. Interest can be interpreted as money paid for the use of money. • The original amount borrowed or invested is called the principal, denoted by P.

Assoc. Prof. Nguyen Dinh Dr. Nguyen Ngoc Hai

CALCULUS 2 (BA)

Simple and compound interest The rate of interest r is the amount charged for the use of the principal for a given length of time, usually on a yearly (or per annum, abbreviated p.a.) basis, given either as a percentage (p per cent) or as a decimal r , i.e. r= p . 100

The total amount received after (investing) a period of time is called accumulated value. The accumulated value after t year is A(t).
Assoc. Prof. Nguyen Dinh Dr. Nguyen Ngoc Hai CALCULUS 2 (BA)

Simple and compound interest Simple interest. Simple interest is interest computed on the principal for the entire period it is borrowed (or invested). It is assumed that

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