9.5 Summary
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9.5 Summary (EMBJN)
- Simple interest: \(A = P(1 + in)\)
- Compound interest: \(A = P(1 + i)^n\)
- Simple depreciation: \(A = P(1 - in)\)
- Compound depreciation: \(A = P(1 - i)^n\)
- Nominal and effective annual interest rates: \(1 + i = \left( 1 + \frac{i^{(m)}}{m} \right)^m\)
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9.4 Nominal and effective interest rates
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End of chapter exercises
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