Percentages are something familiar to us all - but they present many pitfalls that need to be avoided.

]]>We explore the idea of borrowing money for a specified rate of interest or earning interest on an investment.

]]>We explore the idea of the `effectiveâ€™ annual interest rate and then on to the Effective Interest Rate/Annual Percentage Rate, the much quoted EIR or APR.

]]>In the first of three chapters covering the way in which interest rate affects cashflow we explore savings - but first we introduce some general ideas that apply equally to annuities and repayment loans.

]]>We move on to annuities in the second of three chapters devoted to exploring the way in which interest rate affects cashflow.

]]>Repayment loans are the subject of the last of three chapters which look at the effects of regular cashflows.

The principles of present and future value apply even if the cash flow is irregular. The calculations are just a matter of breaking down the cash flow calculations into simple steps,

]]>How is it possible to evaluate investments that generate irregular cashflows? We explore how NPV can be used to make investment decisions.

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