Simple Interest Financial Mathematics | Playlist Mini-course Lesson 03
Simple Interest in Financial Mathematics
Are Simple Interests still important? The answer is definitely yes! Although simple interest is somewhat forgotten here in Brazil, in the United States, American bonds are still calculated from the perspective of simple interest.
If you've been following this mini-course, you should remember that we already talked about simple interest in our first lesson, but in this one I will delve deeper into the subject. Also, in case you're unaware, this video is part of my FREE mini-course on Financial Mathematics for Investors.
But, what exactly are simple interest rates? They are pre-defined rates that apply only to the initial value. In other words, there is no compound interest in this case.
When learning about simple interest, we also cover the concepts of initial capital (and no, it's not the band 😂), interest rate and investment time, as well as face value, discount rate and days until maturity, in the case of simple discount calculations. To show you all this in practice using the HP12C calculator, I've brought an example and an exercise for us to do together so you don't get confused.
In addition to contextualizing simple interest, I'll also show you how to apply simple interest to US Treasury bonds. After all, in this case, financial mathematics gets a little more complicated, but nothing you won't be able to do after watching this lesson.
00:52 Simple Interest
03:11 Examples - Simple Discount
05:04 Exercise - Calculation of Simple Interest
#financialmarket #financialmathematics #cashflow #topinvest #freecourse #mathematics #masteringmathematics #finance
👉🏻 Playlist of the mini-course: • Minicurso | Matemática Financeira para Inv...
📸 Follow me on Instagram to stay up-to-date on all the news: / kleber.stumpf
If you liked this video, like and share it with your friends. Let's learn about investments together and achieve financial freedom?