7

Simple Interest, Average Due Dates and Rebate on Bills Discounted

LEARNING OBJECTIVES

After studying this chapter, you will be able to understand:

  • The basic concept of simple interest and its terminology
  • How to calculate simple interest by using daily product method
  • Meaning of average due date and its application to obtain rebate or to calculate simple interest
INTRODUCTION

At various stages of life, a need of additional money may arise. Money may be borrowed from a money lender or from some financial institution and will be returned after a fixed period of time. Due to variety of reasons the money lender charges some additional amount to the borrower for the use of his money. Some of the reasons are:

  1. Money value changes from time to ...

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