Analysing Investment and Loan Options (Grade 12 NSC Matric Mathematics): Flashcards

Higher monthly payments, lower total interest

$x = \frac{P \times i}{1 - (1 + i)^{-n}}$

Principal loan amount

Monthly interest rate (annual ÷ 12)

Total number of payments (years × 12)

$F = x \cdot \frac{(1 + i)^n - 1}{i}$

Estimate of ability to fulfil financial commitments

Illegal scams promising high returns with no risk

Quick returns, require recruiting, focus on recruitment

Total amount paid - Principal amount