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Ma2 Managing Costs and Finance PDF Form

Ma2 Managing Costs and Finance PDF Form

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candidates for this paper need to make sure that they are comfortable with principles of discounted cash flow um let's start with the uh distinction between simple and uh compound interest be sure that um one can make the uh calculations necessary to apply simple interest to a of money simple interest would be for example if we had $100 um on deposit and we would earn $5 per anom on that $100 the compound interest would be if the $5 of of interest is added to the principal amount and the new interest calculation is done on the increased amount in this case if interest were payable semi annually for example then we would be saying that the $100 would attract 5% interest up until the middle of the year and then for the second half of the year the interest would be based on a larger sum of money and would accumulate to an total interest amount of $5 [Music] and6 a little bit more than 6 cents uh which would be calculated as one can see here okay so that's that's pr

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