Section 1.2 Notation
For the purposes of these notes, we will use the following notations:
- Original Amount Borrowed = Principle = \(P\)
- Future Amount to be Repaid = Future Value = \(A\)
- Amount Earned = Interest = \(I\)
- Time of investment in years = \(t\)
- Interest Rate per year = \(i\)
- Interest Rate per compounding period = \(r\)
- Number of compounding periods per year = \(m\)
- Total Number of compounding periods = \(n\)
- Payout per compounding period = \(R\)
- Maturity Value = \(MV\)
These terms will be described in detail and utilized throughout this text.