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THE THEORY OF INTEREST - Sites at Penn State - WordPress

TTTHHHEEE TTTHHHEEEOOORRRYYY OOOFFF IIINNNTTTEEERRREEESSSTTT SSSEEECCCOOONNNDDD EEEDDDIIITTTIIIOOONNN SSSTTTEEEPPPHHHEEENNN KKKEEELLLLLLIIISSSOOONNN RRREEEAAADDDIIINNNGGG NNNOOOTTTEEESSS WWWEEEDDDNNNEEESSSDDDAAAYYY,,, SSSEEEPPPTTTEEEMMMBBBEEERRR 222777,,, 222000000666 KKEELLLLIISSOONN SS RREEAADDIINNGG NNOOTTEESS TTAABBLLEE OOFF CCOONNTTEENNTTSS Chapter 1 The Measurement of The Accumulation and Amount Functions ..4 The Effective Rate of INTEREST ..4 Simple INTEREST ..4 Compound Present Value.

- 6 - 1.7 – The Effective Rate of Discount. The effective rate of discount is a measure of interest paid at the beginning of the period. It is the

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