2.2 UNKNOWN RATE OF INTEREST We need to find the rate of interest i Set up equation of value and solve it for i Very often the resulting equation is a polynomial equation in i of degree higher than 2 In general, there is no formula for solutions of equation of degree ≥ 5 (and the formulas for degrees 3 or 4 are very complicated) Use approximations (numerical methods)
{"Image DocumentName": "1.1 ACCUMULATION FUNCTION", "Image ImageDescription": "Definitions. The amount of money initially invested is called the principal. The amount of money principal has grown to after the time period is called the accumulated value and is denoted by A(t) \u2013 amount function. t \u22650 is measured in years (for the moment) Define Accumulation function a(t)=A(t)/A(0) A(0)=principal. a(0)=1. A(t)=A(0)\u2219a(t)", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}