BUS101 Compound Interest chapter 10

📈 BUS101 – Business Mathematics | Chapter 10: Compound Interest Welcome to Chapter 10 of BUS101: Business Mathematics. In this lecture, we explore the powerful concept of compound interest, one of the most important topics in business, finance, banking, and investment analysis. Students will learn how money grows over time when interest is earned not only on the original principal but also on previously accumulated interest. Topics Covered ✅ Simple Interest vs. Compound Interest ✅ Calculating Compound Interest Using the Simple Interest Method ✅ Effective Interest Rate ✅ Compounding Periods and Compounding Frequency ✅ Interest Rate per Compounding Period ✅ Number of Compounding Periods ✅ Using Compound Interest Tables ✅ Calculating Future (Compound) Value ✅ Present Value Calculations ✅ Business and Investment Applications Learning Outcomes By the end of this lecture, students will be able to: Distinguish between simple interest and compound interest. Calculate compound amounts and compound interest earned. Determine the effective annual interest rate. Identify compounding periods and periodic interest rates. Calculate future value and present value using compound interest tables. Apply compound interest concepts to savings, investments, loans, and business decisions. This chapter provides essential financial mathematics skills used in banking, investment planning, business valuation, retirement planning, and personal finance. 👨‍🏫 Presented by: Dr. Gamal Rashid Elkahlout 🏛️ Arab Open University #BUS101 #BusinessMathematics #CompoundInterest #FutureValue #PresentValue #Finance #Investments #Banking #FinancialMathematics #BusinessFinance #ArabOpenUniversity #AOU #DrGamalElkahlout