Chapter 1

Formula used to calculate simple interest: i = prt. i = amount of interest. p = principal. r = rate of interest. t = time in terms of years. If computing interest for 5 years, then t = 5. If computing interest for 21 months, then t = 1.75. See example 7.17 p. 378-9. Compound interest. interest is paid on the principal and any amount of interest ... ................
................