{"id":44,"date":"2020-04-17T15:13:23","date_gmt":"2020-04-17T19:13:23","guid":{"rendered":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/?post_type=part&#038;p=44"},"modified":"2021-06-24T16:31:50","modified_gmt":"2021-06-24T20:31:50","slug":"chapter-4-compound-interest","status":"publish","type":"part","link":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/part\/chapter-4-compound-interest\/","title":{"raw":"Chapter 4: Compound Interest","rendered":"Chapter 4: Compound Interest"},"content":{"raw":"In the previous chapter, you saw that, in <em>simple interest <\/em>calculations, the amount of interest earned is the <em>same <\/em>for every time period - for example, the amount earned during the first 30-day period is the same as the amount earned in the second 30-day period.\r\n\r\nIn long-term loans, an increase in the amount of interest paid should follow an increase in the loan's value.\r\n\r\nIn long-term loans, it is felt that, since the value of the loan increases with time (because of interest), the amount of <em>interest should increase <\/em>in later time periods. This increase is accomplished by calculating the interest as compound interest.\r\n\r\n&nbsp;\r\n\r\n&nbsp;","rendered":"<p>In the previous chapter, you saw that, in <em>simple interest <\/em>calculations, the amount of interest earned is the <em>same <\/em>for every time period &#8211; for example, the amount earned during the first 30-day period is the same as the amount earned in the second 30-day period.<\/p>\n<p>In long-term loans, an increase in the amount of interest paid should follow an increase in the loan&#8217;s value.<\/p>\n<p>In long-term loans, it is felt that, since the value of the loan increases with time (because of interest), the amount of <em>interest should increase <\/em>in later time periods. This increase is accomplished by calculating the interest as compound interest.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"parent":0,"menu_order":4,"template":"","meta":{"pb_part_invisible":false,"pb_part_invisible_string":""},"contributor":[],"license":[],"class_list":["post-44","part","type-part","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/pressbooks\/v2\/parts\/44","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/pressbooks\/v2\/parts"}],"about":[{"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/wp\/v2\/types\/part"}],"version-history":[{"count":6,"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/pressbooks\/v2\/parts\/44\/revisions"}],"predecessor-version":[{"id":3076,"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/pressbooks\/v2\/parts\/44\/revisions\/3076"}],"wp:attachment":[{"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/wp\/v2\/media?parent=44"}],"wp:term":[{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/wp\/v2\/contributor?post=44"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/wp\/v2\/license?post=44"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}