Thinking about the simple interest

Abstract

As a product of discussions on the use of simple interest and its conceptualizing two questions emerged in the class: Why, under the form of simple interest, present, each of the shares fixed constants is not equal to the present of the annuity due? and What, portion of a fee simple interest expired under allocated to interest and capital? To work these questions we started with a case and with the conceptual support of simple interest, series, harmonic series, properties of inequalities of the series and the integral concept the difference between the present of an annuity due and the amount of each installment was verified and proven. Following an equation was determined that could discriminate each share expired, the portion allocated to interest and capital terms. This work enriches and increases group production of “Contextualization of Financial Mathematics” attached to the Caribbean Innovate Group.