This video explains the fundamental concepts of interest and discounting in financial mathematics. Simple interest is calculated uniformly on the principal amount using the formula SI = (P × R × T) / 100, where P is principal, R is rate, and T is time. Compound interest, however, is calculated on both the principal and accumulated interest, meaning interest earns interest, with the formula CI = A - P where A is the final amount. The video also covers successive discounting, measures of central tendency (mean), and practical applications including work rate problems and average calculations.
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09 Interest & Discounting, Average, Etc. || Mathematical Reasoning & Aptitude By Michael KhamnamAdded:
hello good evening to all of you Rao proportion discoun [Music] discounting simple when we give some house for R we get rent on it [Music] similarly when we l money to a borrower the borrower is to pay an extra amount of money to the lender [Music] this extra amount is known as if the interest on a su borrow for a certain is recor uniformly then it is called simple interest or flat find find the flat principal is the money borrow or L out for a certain the extra amount that the borrower pay for using the lender moneyi simple interest is P RT by 100p fore PR simple compound interest is basically an amount P not only on the principal amount but also on the whatever interest has been PID already interest amount is also added to the original interest amount is also added to the original principal amount and that earns interest on toal investment interest accumulated over one perod is applied to the principle before cating interest for the next mon the for compound interest is given as P compound interest is equal to a minus P where a is the amount to be available at the end of the p simpal princip interest [Music] comp for r comp for 0 20% disc successive discounting disc approximately [Music] 257 X into 0 point into 0.9 % 0 successive discount.9 [Music] maoning [Music] measures of central tendency measures of central tendency [Music] simp group of value is the sum of the divided by the total numberb of [Music] is one of the meas of n observation n observation a sum of observ sum X comb X12 n11 plus N1 plus N2 n number interest discounting if a person a complete a work in X day then the amount of work completed by him in one day will be one by X by [Music] we can say that in one day 1 by 1 by y for examp by X plus one by y number 14 s number 21 number 25 for fore disc interest man borrow 1224 at the interest rate of 50% per but payable half year for 2 years what amount he has to pay back at the end of the loan period if the interest was compound interest cost 50% years compound compounded compounded 1 + r by 100 four half [Music] year for half compound half comp for 25% 25% half 1 plus fore for one4 0.25 0.25 into 1.25 the 125 ID 100 to the power 4 one 2 4 into into by four into by four 1.2 by the five 4 into 5 into 5 into five into five number two the difference between compound interest and the simple interest on R for years ATP 10,000 minus simple interest comp [Music] 1 + r by 100 10,000 1000,000 into R 10 10,000 1 for 1 + 10 by by1 two one 1 2 one 10,000 1.1 1.331 1.3 0.031 10,000 into 0.313 for 10,000 municipal simp faction ratio proportion percent important for theary of the employee is 7,000 7,000 if the average salary of 12 officier is 40,000 and the de of the remaining employees 6,000 then the number of employees 000 4,000 6,000 number employ number we into 40,000 plus 600 6,000 x / p + x equal to can 7,000 and for EMP into 40,000 600 6,000 for 40 40,000 X1 plus N2 x21 N1 X1 plus N2 X2 N1 N2 for EMP 48 6000 equal 84 84 6000 39 39 option number four 4 if the a of 10 number is 40 and the a of six of them is 18 then the Aver of the remaining four number is comp numbers six of them six number six number 6 into plus X1 N1 X1 + n N2 X2 / N1 Plus n21 14 15 16 16 168 plus 4X equal to 400 minus 16 400 16 two uh one 32 32 the uh 8 32 for and number spe math for for ratio proportion 50% 0.5 5% 0.05 [Music] equ for for hell ratio proportion thank you
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