Mathematics: Applications and Interpretation HL
Finance, inference, and network extensions
Net present value, amortisation detail, proportions, chi-square reasoning, and network decision methods for AI HL.
Calculate net present value
Discount future cash flows and subtract the initial investment.
Find outstanding loan balance
Use the outstanding-balance formula after a fixed number of repayments.
Use annuity present value
Calculate the present value of a regular payment stream.
Split loan repayment into interest and principal
Separate one repayment into interest and principal reduction.