I will teach you mathematics of finance for $5

CREATED THURSDAY APRIL 28 2016, IN BUSINESS

If a sum of money is loaned to a person, compensation has to be paid for using such money. This compensation paid is called interest, I. Interest therefore is the money paid for the use of money. The sum borrowed, whether by an individual from a bank in the form of loan or by a bank from an individual in the form of savings account, is called the principal, P. The money paid back must be made together with the interest.

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