Notation

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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.