The Origins of Compound Interest
Chris Lewin from the Institute and Faculty of Actuaries has written a fascinating article on the origins and history of compound interest. This branch of mathematics contributes massively to finance and investment and actuarial science. Some highlights of Chris’ article are:-
# In ancient Rome, Cicero wrote “ ... they should pay with interest for six years at the rate of 12%, and added yearly to the capital sum.”
# In 13th century England, there was social concern for the plight of borrowers. Money lenders were prohibited from compounding interest in 1233 and banned from charging any interest at all in 1275. It wasn’t long, however, before legal loopholes were found and exploited.
# The first printed compound interest tables were published in 1588 by Jean Trenchant of Lyon.
You’ll find the article here https://www.theactuary.com/features/2020/05/07/turning-tables?utm_source=Adestra&utm_medium=email&utm_term=
(29/05/2020)