Module 7: Simple Interest I=PrtS=P(1+rt)P=1+rtsI=SP I=PrtS=P(1+rt)P=1+rtSI=SP P=1+rtS1=SP 1: Amount of Interest (\$) S: Future Value (\$) P. Present Value (\$) r. Nominal rate of interest (\%) t. Time Module 8: Compound Interest FV=PV(1+i)n PV=FV(1+i)norPV=(1+i)nFV i=mj n=mtCI=FVPV FV: Future Value (\$) PV: Present Value (\$) j : Nominal interest rate (\%) m : Frequency of compounding periods per year i : Periodic interest rate (\%) t: Time (years) n :Total number of compounding period in the term CI: Compound Interest amount (\$) Ilinois Furnishings Inc. borrows $90,900 from a bank at 2.68% compounded monthly for 10 years and 7 months. a) How much will the accumulated value of the loan be at the end of the term? S b) How much interest will be charged on the loan? $