AFM: Concepts and Practice · Part C: Financial Management

Chapter 15: Interest and annuities

How money grows and is discounted, and how a bank prices a deposit, an RD, a pension annuity and an EMI, step by step.

Open Chapter 15 in the e-book The book and its prices

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In this chapter

15.1Simple and compound interestp. 199
15.2Compounding more often; term depositsp. 200
15.3Annuities at the end: RDs and sinking fundsp. 201
15.4Annuities today; perpetuitiesp. 202
15.5EMIs and amortisationp. 203
Exam traps and quick checksp. 204
Practice: 16 questions in three roundsp. 205
Answers, with every wrong option explainedp. 207
Make it stickp. 209
Chapter 15 on one pagep. 210

Corrections and updates

None for this chapter so far. Every correction to the book, and any rule that changes after its date, is listed on the errata page.