Techniques of Integration: An Alternative Tool for Solving Problems of Financial Transactions Concerning Simple Interest

Abstract

Money has time value. The value of Tk today is more worthy than the value of Tk 1 tomorrow as today’s money can be invested to earn positive returns in future. This economic principle recognizes that the value of money is affected with the passage of time. Problems of financial transactions concerning simple interest are usually solved by algebraic formula. This paper attempts to solve such problems using techniques of integration and makes a comparison with the results obtained by the classical algebraic method and finds no error. The proposed techniques could be implemented in the practical field as it provides error-free result.