Apply the formula $I = \frac{PRT}{100}$ to find simple interest and the total amount $A = P + I$, rearrange it to find the principal, rate, or time, and convert a time given in months into years before substituting.
Explain why compound interest outgrows simple interest, apply $A = P\left(1 + \frac{R}{100}\right)^T$ and its $n$-period form to find the compound amount and interest, and rearrange to find the principal or rate.
Distinguish reducing-balance from straight-line depreciation, apply $V = P\left(1 - \frac{R}{100}\right)^T$ and $V = P\left(1 - \frac{RT}{100}\right)$ to find book value, and find the depreciation rate from the initial and final values.
Identify the parts of a hire purchase agreement, calculate the total HP cost and excess cost, find the monthly installment from the cash price, deposit, rate, and term, and apply simple interest to the outstanding balance rather than the full cash price.
Apply the ordinary annuity formula $FV = R\,\frac{(1+i)^n - 1}{i}$, adjust for an annuity-due by multiplying by $(1+i)$, rearrange to find the regular deposit in a sinking fund, and find bond maturity values and flat-rate loan repayments.
Unit code SSNP9
SSNP9
Calculate simple interest, compound interest, depreciation, annuities, and hire purchase.
