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SUBJECT:
ECONOMIC ENGINEERING
UNIT:
2. ECONOMIC CONCEPTS AND CRITERIA OF THE VALUE OF MONEY OVER
TIME
TOPIC:
COMPOUND INTEREST
STUDENT NAME:
Kevin Jesus Tadeo Reyes Mendez
TEACHER NAME:
ING. MARCO ANTONIO SOSA EHUAN
1. INTRODUCTION
Compound interest is the interest calculated on initial amount (Principal) and on the
interest of previous period of a deposit or loan.
It is also called 'Interest on Interest.
To calculate the compound interest by simple interest method, we calculate the
interest of every year independently using simple interest formula.
When we add first year interest to the principal then it would be the principal for the
next year and so on.
UNIVERSIDAD TECNOLÓGICA DE CAMPECHE
INGENIERÍA EN METAL MECÁNICA
3. DESARROLLO DE LA ACTIVIDAD
6° Cuanto debe invertirse al 4.5% trimestral capitalizable por trimestre para tener
$50,000 en 9 meses?
UNIVERSIDAD TECNOLÓGICA DE CAMPECHE
INGENIERÍA EN METAL MECÁNICA
4. CONCLUSIONES
With the help of compound interest one can trick others. Compound interest can
give very high return after longer periods essential factor in generating favorable
returns. In case of maximum returns compound interest is the best option.
The difference in the total amounts repaid can be explained by the time value of
money by simple or compound interest and by the partial repayment of principal
pior to year
So the idea of compound interest is that it builds on itself at the end of the year
each year as long as you don´t change the amount at the start then you can use
the formula to figure out how much money you will have at the end of any time
UNIVERSIDAD TECNOLÓGICA DE CAMPECHE
INGENIERÍA EN METAL MECÁNICA
5. FUENTES DE INFORMACIÓN
W. A. Davis
Guy E. Churchill
UNIVERSIDAD TECNOLÓGICA DE CAMPECHE
INGENIERÍA EN METAL MECÁNICA