This guide provides useful resources for a wide variety of math topics. It is targeted at students enrolled in a math course or any other Centennial course that requires math knowledge and skills.

- Welcome
- Learning Math Strategies (Online)Toggle Dropdown
- Study Skills for MathToggle Dropdown
- Business Math
- Place Value in Decimal Number Systems
- Arithmetic Operations
- Basic Laws
- Operations on Signed numbers
- Order of Operations
- Some Useful Basic Numeracy
- Decimals
- Fractions
- Percents
- Ratios and Proportions
- Exponents
- Statistics
- Factoring
- Rearranging Formulas
- Solving Linear Equations
- Solving Systems of Linear Equations
- Trade and Cash Discounts
- Multiple Rates of Discount
- Payment Terms and Cash Discounts
- Markup
- Markdown
- Simple Interest
- Equivalent Values
- Compound Interest
- Equivalent Values in Compound Interest
- Nominal and Effective Interest Rates
- Annuities

- Hospitality MathToggle Dropdown
- Place Value in Decimal Number Systems
- Arithmetic Operations
- Order of Operations
- Basic Laws
- Prime Factorisation and Least Common Multiple
- Fractions
- Decimals
- Percents
- Exponents
- Units of Measures
- Fluid Ounces and Ounces
- Metric Measures
- Yield Percent
- Recipe Size Conversion
- Ingredient Ratios
- Food-Service Industry Costs

- Engineering MathToggle Dropdown
- Basic Laws
- Operations with Numbers
- Prime Factorisation and Least Common Multiple
- Fractions
- Exponents
- Reducing Radicals
- Factoring
- Rearranging Formulas
- Solving Linear Equations
- Areas and Volumes of Figures
- Congruence and Similarity
- Functions
- Domain and Range of Functions
- Basics of Graphing
- Transformations
- Graphing Linear Functions
- Graphing Quadratic Functions
- Solving Systems of Linear Equations
- Solving Quadratic Equations
- Solving Higher Degree Equations
- Trigonometry
- Graphing Trigonometric Functions
- Graphing Circles and Ellipses
- Exponential and Logarithmic Functions
- Complex Numbers
- Number Bases in Computer Arithmetic
- Linear Algebra
- Calculus
- Set Theory
- Modular Numbers and Cryptography
- Statistics
- Problem Solving Strategies

- Upgrading / Pre-HealthToggle Dropdown
- Basic Laws
- Place Value in Decimal Number Systems
- Decimals
- Significant Digits
- Prime Factorisation and Least Common Multiple
- Fractions
- Percents
- Ratios and Proportions
- Exponents
- Reducing Radicals
- Metric Conversions
- Factoring
- Solving Linear Equations1
- Solving Quadratic Equations
- Polynomial Long Division
- Exponential and Logarithmic Functions
- Statistics

- Nursing MathToggle Dropdown
- Arithmetic Operations
- Order of Operations
- Place Value in Decimal Number Systems
- Decimals
- Fractions
- Percents
- Ratios and Proportions
- Interpreting Drug Orders
- Oral Dosages
- Dosage Based on Size of the Patient
- Parenteral Dosages
- Intravenous (IV) Administration
- Infusion Rates for Intravenous Piggyback (IVPB) Bag
- General Dosage Rounding Rules

- Transportation MathToggle Dropdown
- PhysicsToggle Dropdown

Money subject to a rate of interest will grow over time. Thus, the value of the amount of money changes over time. This change is known as the time value of money. For example, if $1000 is invested today at 1% p.a. compounded annually. In one year, this value is $1010, $1020.10 in two years, and $1030.30 in three years.

The values are called **equivalent values** as they represent the same investment with the same interest rate at different times.

This is important because in order to compare choices, we must make a rational choice on a specific date called the **focal date**. The **focal date** can be set on any date.

The choice of calculating the **Present Value**, **P**, compared to the **Future Value**, **S**, depends on the relation of the due date/payment date in comparison to the **focal date**.

1. If the ** due date falls before the focal date**, calculate the future value, S.This means with a positive interest rate, you should get a larger value after calculation. For simple interest, you will be calculating S from \(S=P(1+i)^n\).

2. If the *due date falls after the focal date*, calculate the present value, P.This means with a positive interest rate, you should get a smaller value after calculation. For simple interest, you will be calculating P from \(P=S\left(1+i\right)^{-n}\).

A payment of $500 is due in six months with interest at 12% compounded quarterly. A second payment of $800 is due in 18 months with interest at 10% compounded semi-annually. These two payments are to be replaced by a single payment nine months from now. Determine the size of the replacement payment if interest is 9% compounded monthly and the focal date is nine months from now.

Watch the video below for the solution!

Designed by Matthew Cheung. This work is licensed under a Creative Commons Attribution 4.0 International License.

- Last Updated: Mar 27, 2023 5:08 PM
- URL: https://libraryguides.centennialcollege.ca/mathhelp
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