Prepared by Johnny Howard 2015 South-Western, a part of Cengage Learning
|
|
- Rodger Cannon
- 5 years ago
- Views:
Transcription
1 Prepared by Johnny Howard
2 23 2
3 T E R M S Annuities Annuity Present value of an annuity Sinking fund Future value of an annuity Ordinary annuity Beginning of the annuity End of the annuity
4 Figure 23.1 Diagram of an Ordinary Annuity 23 4
5 Figure 23.2 Future Value of an Ordinary Annuity 23 5
6 to Compute the Future Value of an Annuity and Total Interest Earned 1. Determine the annuity factor (FVAF) using either a calculator with exponents or Table Multiply the payment amount by the annuity factor (FVAF). The product is the future value of the annuity (FVA), including interest. 3. Multiply the payment amount by the number of payments. The product is the total payments. 4. Subtract the total payments from the future value of the annuity (FVA). The difference is the total interest earned
7 23 7
8 to Find the Size of the Payment in an Annuity, Given Its Future Value 1. Determine the annuity factor (FVAF) using Table 23-1 or a calculator. 2. Divide the future value by the annuity factor. The quotient is the amount of each payment in the annuity
9 23 9
10 23 10
11 Figure 23.3 Present Value of an Ordinary Annuity 23 11
12 23 12
13 to Compute the Present Value of an Annuity and Total Interest Earned 1. Determine the annuity factor (PVAF) using either a calculator with exponents or Table Multiply the payment amount by the annuity factor (PVAF). The product is the present value of the annuity (PVA). 3. Multiply the payment amount by the number of payments. The product is the total of all payments. 4. Subtract the present value of the annuity from the total of all payments. The difference is the total interest earned
14 to Find the Size of the Payment in an Annuity, Given the Present Value 1. Determine the annuity factor (PVAF) using a calculator or Table Divide the present value by the annuity factor (PVAF). The quotient is the amount of the payments in the annuity. As a formula, Step 2 could be written as Pmt = PVA PVAF
15 23 15
16 to Find the Size of the Payment to Amortize a Loan 1. Determine the annuity factor (PVAF) using Table 23-2 or a calculator. 2. Divide the loan amount by the annuity factor (PVAF). The quotient is the amount of the monthly loan payments
17 23 17
18 to Create an Amortization Schedule For each row except the last: 1. Interest payment = Unpaid balance Monthly interest rate 2. Principal payment = Monthly payment Interest payment 3. New unpaid balance = Old unpaid balance Principal payment For the last row: 1. Interest payment = Unpaid balance Monthly interest rate 2. (Then ADD) Monthly payment = Unpaid balance + Interest payment 3. Principal payment = Unpaid balance
19 23 19
20 Chapter Terms for Review annuity future value of an annuity future value of an annuity factor (FVAF) ordinary annuity present value of an annuity present value of an annuity factor (PVAF) sinking fund time line 23 20
21 Assignment 23.1: Annuities Future Value A For each of the following annuities, find the future value or the amount of the periodic payment. Round answers to the nearest cent
22 Assignment 23.1: Annuities Future Value A For each of the following annuities, find the future value or the amount of the periodic payment. Round answers to the nearest cent
23 Assignment 23.1: Annuities Future Value B For each of the following annuities, find the future value, the amount of the periodic payment, or the total amount of interest paid. Round answers to the nearest cent
24 Assignment 23.1: Annuities Future Value B For each of the following annuities, find the future value, the amount of the periodic payment, or the total amount of interest paid. Round answers to the nearest cent
25 Assignment 23.1: Annuities Future Value B For each of the following annuities, find the future value, the amount of the periodic payment, or the total amount of interest paid. Round answers to the nearest cent
26 Assignment 23.1: Annuities Future Value C In each of the following applications, find the future value of the annuity, the amount of the periodic payment, or the total amount of interest earned. Round answers to the nearest cent
27 Assignment 23.1: Annuities Future Value C In each of the following applications, find the future value of the annuity, the amount of the periodic payment, or the total amount of interest earned. Round answers to the nearest cent
28 Assignment 23.1: Annuities Future Value C In each of the following applications, find the future value of the annuity, the amount of the periodic payment, or the total amount of interest earned. Round answers to the nearest cent
29 Assignment 23.1: Annuities Future Value C In each of the following applications, find the future value of the annuity, the amount of the periodic payment, or the total amount of interest earned. Round answers to the nearest cent
30 Assignment 23.1: Annuities Future Value C In each of the following applications, find the future value of the annuity, the amount of the periodic payment, or the total amount of interest earned. Round answers to the nearest cent
31 Assignment 23.2: Annuities Present Value A For each of the following annuities, find the present value or the amount of the periodic payment. Round answers to the nearest cent
32 Assignment 23.2: Annuities Present Value A For each of the following annuities, find the present value or the amount of the periodic payment. Round answers to the nearest cent
33 Assignment 23.2: Annuities Present Value B For each of the following annuities, find the present value, the amount of the periodic payment, or the total amount of interest paid. Round answers to the nearest cent
34 Assignment 23.2: Annuities Present Value B For each of the following annuities, find the present value, the amount of the periodic payment, or the total amount of interest paid. Round answers to the nearest cent
35 Assignment 23.2: Annuities Present Value B For each of the following annuities, find the present value, the amount of the periodic payment, or the total amount of interest paid. Round answers to the nearest cent
36 Assignment 23.2: Annuities Present Value C In each of the following applications, find the present value of the annuity, the amount of the periodic payment, or the total amount of interest earned. Round answers to the nearest cent
37 Assignment 23.2: Annuities Present Value C In each of the following applications, find the present value of the annuity, the amount of the periodic payment, or the total amount of interest earned. Round answers to the nearest cent
38 Assignment 23.2: Annuities Present Value C In each of the following applications, find the present value of the annuity, the amount of the periodic payment, or the total amount of interest earned. Round answers to the nearest cent
39 Assignment 23.2: Annuities Present Value C In each of the following applications, find the present value of the annuity, the amount of the periodic payment, or the total amount of interest earned. Round answers to the nearest cent
40 Assignment 23.2: Annuities Present Value D Gary Robinson purchased some new equipment and furniture for his office. Instead of charging it on a credit card, which had an 18% interest rate, Gary negotiated financing with the office supply dealer. The total purchase amount was $6,450 and it was amortized over 4 months. The interest rate was 6% per year, or 0.5% per month. The first three monthly payments were each $1, Complete the first three lines of the following amortization schedule. Round answers to the nearest cent
SOLUTION METHODS FOR SELECTED BASIC FINANCIAL RELATIONSHIPS
SVEN THOMMESEN FINANCE 2400/3200/3700 Spring 2018 [Updated 8/31/16] SOLUTION METHODS FOR SELECTED BASIC FINANCIAL RELATIONSHIPS VARIABLES USED IN THE FOLLOWING PAGES: N = the number of periods (months,
More informationMath 1324 Finite Mathematics Chapter 4 Finance
Math 1324 Finite Mathematics Chapter 4 Finance Simple Interest: Situation where interest is calculated on the original principal only. A = P(1 + rt) where A is I = Prt Ex: A bank pays simple interest at
More informationSection 5.1 Simple and Compound Interest
Section 5.1 Simple and Compound Interest Question 1 What is simple interest? Question 2 What is compound interest? Question 3 - What is an effective interest rate? Question 4 - What is continuous compound
More information5.3 Amortization and Sinking Funds
5.3 Amortization and Sinking Funds Sinking Funds A sinking fund is an account that is set up for a specific purpose at some future date. Typical examples of this are retirement plans, saving money for
More informationChapter 3 Mathematics of Finance
Chapter 3 Mathematics of Finance Section R Review Important Terms, Symbols, Concepts 3.1 Simple Interest Interest is the fee paid for the use of a sum of money P, called the principal. Simple interest
More informationWorksheet-2 Present Value Math I
What you will learn: Worksheet-2 Present Value Math I How to compute present and future values of single and annuity cash flows How to handle cash flow delays and combinations of cash flow streams How
More informationPrepared by Johnny Howard 2015 South-Western, a part of Cengage Learning
Prepared by Johnny Howard 14 2 T E R M S Converting Interest Rates Rule: To convert an annual rate to a monthly rate, divide the annual rate by 12. Rule: To convert a monthly rate to an annual rate, multiply
More informationChapter 13. Annuities and Sinking Funds McGraw-Hill/Irwin. Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 13 Annuities and Sinking Funds 13-1 McGraw-Hill/Irwin Copyright 2006 by The McGraw-Hill Companies, Inc. All rights reserved. Compounding Interest (Future Value) Annuity - A series of payments--can
More informationบทท 3 ม ลค าของเง นตามเวลา (Time Value of Money)
บทท 3 ม ลค าของเง นตามเวลา (Time Value of Money) Topic Coverage: The Interest Rate Simple Interest Rate Compound Interest Rate Amortizing a Loan Compounding Interest More Than Once per Year The Time Value
More informationSolution Set 1 Foundations of Finance. Problem Set 1 Solution: Time Value of Money and Equity Markets
Problem Set 1 Solution: Time Value of Money Equity Markets I. Present Value with Multiple Cash Flows: 0 1 2 3 A: 40000 40000 B: 30000 20000 20000 APR is 16% compounded quarterly; Periodic Rate (with quarterly
More information2. A loan of $7250 was repaid at the end of 8 months. What size repayment check was written if a 9% annual rate of interest was charged?
Math 1630 Practice Test Name Chapter 5 Date For each problem, indicate which formula you are using, (B) substitute the given values into the appropriate places, and (C) solve the formula for the unknown
More informationLearning Plan 3 Chapter 3
Learning Plan 3 Chapter 3 Questions 1 and 2 (page 82) To convert a decimal into a percent, you must move the decimal point two places to the right. 0.72 = 72% 5.46 = 546% 3.0842 = 308.42% Question 3 Write
More informationFinance Notes AMORTIZED LOANS
Amortized Loans Page 1 of 10 AMORTIZED LOANS Objectives: After completing this section, you should be able to do the following: Calculate the monthly payment for a simple interest amortized loan. Calculate
More informationAlgebra 2: Lesson 11-9 Calculating Monthly Payments. Learning Goal: 1) How do we determine a monthly payment for a loan using any given formula?
NAME: DATE: Algebra 2: Lesson 11-9 Calculating Monthly Payments Learning Goal: 1) How do we determine a monthly payment for a loan using any given formula? Warm Up: Ready? Scenerio. You are 25 years old
More informationFin 5413: Chapter 04 - Fixed Interest Rate Mortgage Loans Page 1 Solutions to Problems - Chapter 4 Fixed Interest Rate Mortgage Loans
Fin 5413: Chapter 04 - Fixed Interest Rate Mortgage Loans Page 1 Solutions to Problems - Chapter 4 Fixed Interest Rate Mortgage Loans Problem 4-1 A borrower makes a fully amortizing CPM mortgage loan.
More informationPart 2. Finite Mathematics. Chapter 3 Mathematics of Finance Chapter 4 System of Linear Equations; Matrices
Part 2 Finite Mathematics Chapter 3 Mathematics of Finance Chapter 4 System of Linear Equations; Matrices Chapter 3 Mathematics of Finance Section 1 Simple Interest Section 2 Compound and Continuous Compound
More informationPrinciples of Corporate Finance
Principles of Corporate Finance Professor James J. Barkocy Time is money really McGraw-Hill/Irwin Copyright 2015 by The McGraw-Hill Companies, Inc. All rights reserved. Time Value of Money Money has a
More information3.1 Simple Interest. Definition: I = Prt I = interest earned P = principal ( amount invested) r = interest rate (as a decimal) t = time
3.1 Simple Interest Definition: I = Prt I = interest earned P = principal ( amount invested) r = interest rate (as a decimal) t = time An example: Find the interest on a boat loan of $5,000 at 16% for
More informationTime Value of Money, Part 5 Present Value aueof An Annuity. Learning Outcomes. Present Value
Time Value of Money, Part 5 Present Value aueof An Annuity Intermediate Accounting I Dr. Chula King 1 Learning Outcomes The concept of present value Present value of an annuity Ordinary annuity versus
More informationSection 5.1 Compound Interest
Section 5.1 Compound Interest Simple Interest Formulas: Interest: Accumulated amount: I = P rt A = P (1 + rt) Here P is the principal (money you start out with), r is the interest rate (as a decimal),
More informationSection 8.3 Compound Interest
Section 8.3 Compound Interest Objectives 1. Use the compound interest formulas. 2. Calculate present value. 3. Understand and compute effective annual yield. 4/24/2013 Section 8.3 1 Compound interest is
More informationCHAPTER 4 DISCOUNTED CASH FLOW VALUATION
CHAPTER 4 DISCOUNTED CASH FLOW VALUATION Answers to Concept Questions 1. Assuming positive cash flows and interest rates, the future value increases and the present value decreases. 2. Assuming positive
More informationCHAPTER 4 DISCOUNTED CASH FLOW VALUATION
CHAPTER 4 DISCOUNTED CASH FLOW VALUATION Answers to Concepts Review and Critical Thinking Questions 1. Assuming positive cash flows and interest rates, the future value increases and the present value
More informationExercise Maturity Interest paid Stated rate Effective (market) rate 10 years annually 10% 12%
Exercise 14-2 1. Maturity Interest paid Stated rate Effective (market) rate 10 years annually 10% 12% Interest $100,000 x 5.65022 * = $565,022 Principal $1,000,000 x 0.32197 ** = 321,970 Present value
More informationLectures 2-3 Foundations of Finance
Lecture 2-3: Time Value of Money I. Reading II. Time Line III. Interest Rate: Discrete Compounding IV. Single Sums: Multiple Periods and Future Values V. Single Sums: Multiple Periods and Present Values
More informationCHAPTER 4 DISCOUNTED CASH FLOW VALUATION
CHAPTER 4 DISCOUNTED CASH FLOW VALUATION Answers to Concept Questions 1. Assuming positive cash flows and interest rates, the future value increases and the present value decreases. 2. Assuming positive
More informationLectures 1-2 Foundations of Finance
Lectures 1-2: Time Value of Money I. Reading A. RWJ Chapter 5. II. Time Line A. $1 received today is not the same as a $1 received in one period's time; the timing of a cash flow affects its value. B.
More informationBefore How can lines on a graph show the effect of interest rates on savings accounts?
Compound Interest LAUNCH (7 MIN) Before How can lines on a graph show the effect of interest rates on savings accounts? During How can you tell what the graph of simple interest looks like? After What
More informationCHAPTER 8. Personal Finance. Copyright 2015, 2011, 2007 Pearson Education, Inc. Section 8.4, Slide 1
CHAPTER 8 Personal Finance Copyright 2015, 2011, 2007 Pearson Education, Inc. Section 8.4, Slide 1 8.4 Compound Interest Copyright 2015, 2011, 2007 Pearson Education, Inc. Section 8.4, Slide 2 Objectives
More informationChapter 2 Applying Time Value Concepts
Chapter 2 Applying Time Value Concepts Chapter Overview Albert Einstein, the renowned physicist whose theories of relativity formed the theoretical base for the utilization of atomic energy, called the
More informationFinance Lecture Notes for the Spring semester V.71 of. Bite-size Lectures. the Time Value of Money (TVM) and
Finance 2400 Lecture Notes for the Spring semester 2018 V.71 of Bite-size Lectures on the Time Value of Money (TVM) and the discounting of future cash flows. Sven Thommesen 2018 Last updated: 2011-09-05
More informationMATH COLLEGE ALGEBRA/BUSN - PRACTICE EXAM #3 - FALL DR. DAVID BRIDGE
MATH 15 - COLLEGE ALGEBRA/BUSN - PRACTICE EXAM # - FALL 2007 - DR. DAVID BRIDGE MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Find the simple interest.
More informationHOME EQUITY CONVERSION MORTGAGE Using an HP12C to Calculate Payments to Borrowers
4235.1 REV-1 HOME EQUITY CONVERSION MORTGAGE Using an HP12C to Calculate Payments to Borrowers This appendix illustrates use of an HP12C for calculating payments to borrowers under the Home Equity Conversion
More informationMAT 121: Mathematics for Business and Information Science OPTIONAL Take-Home "Quest" on Chapter 5: Mathematics of Finance 70 Points Total.
Name: Section: Date: MAT 121: Mathematics for Business and Information Science OPTIONAL Take-Home "Quest" on Chapter 5: Mathematics of Finance 70 Points Total Guidelines 1. Each student must produce his
More informationAnnuities: Present Value
8.5 nnuities: Present Value GOL Determine the present value of an annuity earning compound interest. INVESTIGTE the Math Kew wants to invest some money at 5.5%/a compounded annually. He would like the
More informationThe Time Value. The importance of money flows from it being a link between the present and the future. John Maynard Keynes
The Time Value of Money The importance of money flows from it being a link between the present and the future. John Maynard Keynes Get a Free $,000 Bond with Every Car Bought This Week! There is a car
More informationTIME VALUE OF MONEY (TVM) IEG2H2-w2 1
TIME VALUE OF MONEY (TVM) IEG2H2-w2 1 After studying TVM, you should be able to: 1. Understand what is meant by "the time value of money." 2. Understand the relationship between present and future value.
More informationeee Quantitative Methods I
eee Quantitative Methods I THE TIME VALUE OF MONEY Level I 2 Learning Objectives Understand the importance of the time value of money Understand the difference between simple interest and compound interest
More informationWork4Me Accounting Simulations. Problem Fifteen
Work4Me Accounting Simulations 3 rd Web-Based Edition Problem Fifteen Long Term Notes and Bonds Page 1 Introduction Bus-Way, Incorporated, is a small telecommunications firm specializing in telecommunications
More informationFormat: True/False. Learning Objective: LO 3
Parrino/Fundamentals of Corporate Finance, Test Bank, Chapter 6 1.Calculating the present and future values of multiple cash flows is relevant only for individual investors. 2.Calculating the present and
More informationLecture 3. Chapter 4: Allocating Resources Over Time
Lecture 3 Chapter 4: Allocating Resources Over Time 1 Introduction: Time Value of Money (TVM) $20 today is worth more than the expectation of $20 tomorrow because: a bank would pay interest on the $20
More informationChapter 9: Consumer Mathematics. To convert a percent to a fraction, drop %, use percent as numerator and 100 as denominator.
Chapter 9: Consumer Mathematics Definition: Percent To convert a percent to a decimal, drop % and move the decimal two places left. Examples: To convert a percent to a fraction, drop %, use percent as
More information1. Reasons why it is necessary to issue stock acquisition rights under especially favorable conditions
May 12, 2006 JSAT Corporation Delegation of Authority to the Board of Directors to Set Terms for the Issuance of Stock Acquisition Rights as Stock Options (Issuance of Stock Acquisition Rights (Stock Options)
More informationPercents and Ratios If a discount of 25% off the retail price of a desk saves Mark $45, how much did he pay for the desk?
Percents and Ratios 1. If a discount of 25% off the retail price of a desk saves Mark $45, how much did he pay for the desk? $135 $160 $180 $210 $215 2. A customer pays $1,100 in state taxes on a newly
More informationCHAPTER 4 TIME VALUE OF MONEY
CHAPTER 4 TIME VALUE OF MONEY 1 Learning Outcomes LO.1 Identify various types of cash flow patterns (streams) seen in business. LO.2 Compute the future value of different cash flow streams. Explain the
More informationPRINCIPLES OF FINANCIAL AND MANAGERIAL ACCOUNTING II. Long-Term Liabilities. 1. Determine and record the selling price of bonds payable.
Objectives: PRINCIPLES OF FINANCIAL AND MANAGERIAL ACCOUNTING II Long-Term Liabilities 1. Determine and record the selling price of bonds payable. 2. Determine and record amortization of premium and discount
More informationChapter 2 Applying Time Value Concepts
Chapter 2 Applying Time Value Concepts Chapter Overview Albert Einstein, the renowned physicist whose theories of relativity formed the theoretical base for the utilization of atomic energy, called the
More information3) Money accumulates when it is invested and earns interest, because of the time value of money. Answer: TRUE
Personal Finance, 2Ce (Madura/Gill) Chapter 2 Applying Time Value Concepts 2.1 True/False 1) Time value of money is based on the belief that a dollar that will be received at some future date is worth
More informationREVIEW MATERIALS FOR REAL ESTATE FUNDAMENTALS
REVIEW MATERIALS FOR REAL ESTATE FUNDAMENTALS 1997, Roy T. Black J. Andrew Hansz, Ph.D., CFA REAE 3325, Fall 2005 University of Texas, Arlington Department of Finance and Real Estate CONTENTS ITEM ANNUAL
More informationSimple Interest: Interest earned on the original investment amount only
c Kathryn Bollinger, November 30, 2005 1 Chapter 5 - Finance 5.1 - Compound Interest Simple Interest: Interest earned on the original investment amount only = I = Prt I = the interest earned, P = the amount
More informationSimple Interest: Interest earned on the original investment amount only. I = Prt
c Kathryn Bollinger, June 28, 2011 1 Chapter 5 - Finance 5.1 - Compound Interest Simple Interest: Interest earned on the original investment amount only If P dollars (called the principal or present value)
More information3. Time value of money. We will review some tools for discounting cash flows.
1 3. Time value of money We will review some tools for discounting cash flows. Simple interest 2 With simple interest, the amount earned each period is always the same: i = rp o where i = interest earned
More informationIntroduction to the Hewlett-Packard (HP) 10B Calculator and Review of Mortgage Finance Calculations
Introduction to the Hewlett-Packard (HP) 0B Calculator and Review of Mortgage Finance Calculations Real Estate Division Faculty of Commerce and Business Administration University of British Columbia Introduction
More information3. Time value of money
1 Simple interest 2 3. Time value of money With simple interest, the amount earned each period is always the same: i = rp o We will review some tools for discounting cash flows. where i = interest earned
More informationCanadian Investments Funds Course
Course Information Welcome to the Canadian Investment Funds course. Since this course was first offered in 1966, this course has served as the foundation for thousands of careers in the mutual fund industry.
More informationMATH 1012 Section 6.6 Solving Application Problems with Percent Bland
MATH 1012 Section 6.6 Solving Application Problems with Percent Bland Office Max sells a flat panel computer monitor for $299. If the sales tax rate is 5%, how much tax is paid? What is the total cost
More informationMathematics 7 Fractions, Decimals and Percentages
Mathematics 7 Fractions, Decimals and Percentages FRACTIONS: 50 Numerator (top number) 100 Denominator (bottom number) * means 50 100 There are three types of fractions: 1.) Proper Fraction 13 The denominator
More informationDiscrete Math Chapter 8 - Pretest. SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
Discrete Math Name Chapter 8 - Pretest Date SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. The principal P is borrowed at simple interest rate r for
More informationCopyright 2015 Pearson Education, Inc. All rights reserved.
Chapter 4 Mathematics of Finance Section 4.1 Simple Interest and Discount A fee that is charged by a lender to a borrower for the right to use the borrowed funds. The funds can be used to purchase a house,
More information5.06 Rationalizing Denominators
.0 Rationalizing Denominators There is a tradition in mathematics of eliminating the radicals from the denominators (or numerators) of fractions. The process is called rationalizing the denominator (or
More informationSections F.1 and F.2- Simple and Compound Interest
Sections F.1 and F.2- Simple and Compound Interest Simple Interest Formulas If I denotes the interest on a principal P (in dollars) at an interest rate of r (as a decimal) per year for t years, then we
More informationMoney and Banking. Semester 1/2016
Money and Banking Semester 1/2016 Score Allocation Quizzes 10% Mid-Term Exam 30% Final Exam 30% Individual and Group Reports 20% Class Participation 10% >>> Total 100% Classroom Disciplines I expect regular
More informationAs Introduced. 131st General Assembly Regular Session H. B. No
131st General Assembly Regular Session H. B. No. 600 2015-2016 Representative Amstutz A B I L L To amend section 5726.04 of the Revised Code to make a technical correction to the financial institutions
More informationCopyright 2016 by the UBC Real Estate Division
DISCLAIMER: This publication is intended for EDUCATIONAL purposes only. The information contained herein is subject to change with no notice, and while a great deal of care has been taken to provide accurate
More informationChapter 9, Mathematics of Finance from Applied Finite Mathematics by Rupinder Sekhon was developed by OpenStax College, licensed by Rice University,
Chapter 9, Mathematics of Finance from Applied Finite Mathematics by Rupinder Sekhon was developed by OpenStax College, licensed by Rice University, and is available on the Connexions website. It is used
More informationCaution: This revised version of the 2017 Schedule OS was placed on the internet on March 20, Line 31 says see instructions.
Caution: This revised version of the 2017 Schedule OS was placed on the internet on March 20, 2018. Line 31 says see instructions. The 2017 Schedule OS instructions have also been revised to add instructions
More information13.3. Annual Percentage Rate (APR) and the Rule of 78
13.3. Annual Percentage Rate (APR) and the Rule of 78 Objectives A. Find the APR of a loan. B. Use the rule of 78 to find the refund and payoff of a loan. C. Find the monthly payment for a loan using an
More informationChapter 5 - Level 3 - Course FM Solutions
ONLY CERTAIN PROBLEMS HAVE SOLUTIONS. THE REMAINING WILL BE ADDED OVER TIME. 1. Kathy can take out a loan of 50,000 with Bank A or Bank B. With Bank A, she must repay the loan with 60 monthly payments
More informationTime value of money-concepts and Calculations Prof. Bikash Mohanty Department of Chemical Engineering Indian Institute of Technology, Roorkee
Time value of money-concepts and Calculations Prof. Bikash Mohanty Department of Chemical Engineering Indian Institute of Technology, Roorkee Lecture - 13 Multiple Cash Flow-1 and 2 Welcome to the lecture
More informationHIGH-LOW METHOD. Key Topics to Know
HIGH-LOW METHOD Key Topics to Know One of several methods of separating mixed costs into their variable and fixed components. Uses only the data points with the highest and lowest activity levels and the
More informationChapter 2 Time Value of Money ANSWERS TO END-OF-CHAPTER QUESTIONS
Chapter 2 Time Value of Money ANSWERS TO END-OF-CHAPTER QUESTIONS 2-1 a. PV (present value) is the value today of a future payment, or stream of payments, discounted at the appropriate rate of interest.
More informationChapter 2 Applying Time Value Concepts
Chapter 2 Applying Time Value Concepts Chapter Overview Albert Einstein, the renowned physicist whose theories of relativity formed the theoretical base for the utilization of atomic energy, called the
More informationF.3 - Annuities and Sinking Funds
F.3 - Annuities and Sinking Funds Math 166-502 Blake Boudreaux Department of Mathematics Texas A&M University March 22, 2018 Blake Boudreaux (TAMU) F.3 - Annuities March 22, 2018 1 / 12 Objectives Know
More informationSection 8.1. I. Percent per hundred
1 Section 8.1 I. Percent per hundred a. Fractions to Percents: 1. Write the fraction as an improper fraction 2. Divide the numerator by the denominator 3. Multiply by 100 (Move the decimal two times Right)
More informationFINANCE FOR EVERYONE SPREADSHEETS
FINANCE FOR EVERYONE SPREADSHEETS Some Important Stuff Make sure there are at least two decimals allowed in each cell. Otherwise rounding off may create problems in a multi-step problem Always enter the
More informationThe Advanced Arithmetic and Theorems of Mutual Fund Statements. Floyd Vest
The Advanced Arithmetic and Theorems of Mutual Fund Statements Floyd Vest Millions and millions of Americans have investments in mutual funds This gives them professional management of their money invested
More informationSolutions to Questions - Chapter 3 Mortgage Loan Foundations: The Time Value of Money
Solutions to Questions - Chapter 3 Mortgage Loan Foundations: The Time Value of Money Question 3-1 What is the essential concept in understanding compound interest? The concept of earning interest on interest
More informationSTATUS [ ] For office use only
CITY OF CHICAGO DEPARTMENT OF REVENUE USE TAX RETURN - 8400 FOR TITLED PERSONAL PROPERTY STATUS [ ] For office use only ACCOUNT NUMBER DUE DATE CHECK IF RETURN IS: Mail Payment and Return to: Amended BEGINNING
More information6.1 Simple and Compound Interest
6.1 Simple and Compound Interest If P dollars (called the principal or present value) earns interest at a simple interest rate of r per year (as a decimal) for t years, then Interest: I = P rt Accumulated
More informationACCOUNTING FOR BONDS
ACCOUNTING FOR BONDS Key Terms and Concepts to Know Bonds are a medium to long-term financing alternative to issuing stock. Bonds are issued or sold face amount or par, at a discount if they pay less than
More informationExamples of Strategies
Examples of Strategies Grade Essential Mathematics (40S) S Begin adding from the left When you do additions using paper and pencil, you usually start from the right and work toward the left. To do additions
More informationMath 1090 Mortgage Project Name(s) Mason Howe Due date: 4/10/2015
Math 1090 Mortgage Project Name(s) Mason Howe Due date: 4/10/2015 In this project we will examine a home loan or mortgage. Assume that you have found a home for sale and have agreed to a purchase price
More informationFind each percent of change. Round answers to the nearest tenth of a percent, if necessary. A. 65 is decreased to 38.
LESSON 6-6 Percent of Change Lesson Objectives Solve problems involving percent of change Vocabulary percent of change (p. 352) percent of increase (p. 352) percent of decrease (p. 352) Additional Examples
More informationNumber.notebook. January 20, Add ins
Add ins We have LOADS of things we need to know for the IGCSE that you haven't learnt as part of the Bavarian Curriculum. We are now going to shoehorn in some of those topics and ideas. Number Add ins
More information6-3 Dividing Polynomials
Polynomials can be divided using long division just like you learned with numbers. Divide) 24 6 5 6 24-8 4-0 4 Remainder 24 6 = 5 4 6 Example : Using Long Division to Divide a Polynomial Divide using
More informationFull file at https://fratstock.eu
Chapter 2 Time Value of Money ANSWERS TO END-OF-CHAPTER QUESTIONS 2-1 a. PV (present value) is the value today of a future payment, or stream of payments, discounted at the appropriate rate of interest.
More informationTest 1 Review. When we use scientific notation, we write these two numbers as:
Test 1 Review Test 1: 15 questions total 13 multiple choice worth 6 points each 2 free response questions (worth 10 or 12 points) Scientific Notation: Scientific Notation is a shorter way of writing very
More informationConnecticut Commercial Auto Profit-Sharing Plan
Connecticut Commercial Auto Profit-Sharing Plan 2017 Key Elements Seven Key Elements 1 This is a one-year profit-sharing plan. 2 Only paid losses, not loss reserves, are used in the calculations. 3 There
More informationSocial Security Amendment Retirement Contributions. Reduction Formulas. Examples. Social Security Earnings Limitation
Civil Service Offset Benefits Social Security Amendment 1983 Retirement Contributions Reduction Formulas Eamples Social Security Earnings Limitation Windfall Benefits Elimination Provision Government Pension
More informationProf Albrecht s Notes Accounting for Bonds Intermediate Accounting 2
Prof Albrecht s Notes Accounting for Bonds Intermediate Accounting 2 Companies need capital to fund the acquisition of various resources for use in business operations. They get this capital from owners
More information1) Cash Flow Pattern Diagram for Future Value and Present Value of Irregular Cash Flows
Topics Excel & Business Math Video/Class Project #45 Cash Flow Analysis for Annuities: Savings Plans, Asset Valuation, Retirement Plans and Mortgage Loan. FV, PV and PMT. 1) Cash Flow Pattern Diagram for
More informationAdditional details for responses to Form 8937, Part II, line 14
Additional details for responses to Form 8937, Part II, line 14 All capitalized terms used below but not defined herein shall have the same definition given to them in the AGREEMENT AND PLAN OF MERGER
More informationMATH COLLEGE ALGEBRA/BUSN - PRACTICE EXAM #3 - FALL DR. DAVID BRIDGE
MATH 45 - COLLEGE ALGEBRA/BUSN - PRACTICE EXAM # - FALL 00 - DR. DAVID BRIDGE MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Find the simple interest.
More informationD This process could be written backwards and still be a true equation. = A D + B D C D
Section 4 2: Dividing Polynomials Dividing Polynomials if the denominator is a monomial. We add and subtract fractions with a common denominator using the following rule. If there is a common denominator
More informationBooklet IL-700-T. Illinois Withholding. Tax Tables. Effective January 1, Tax rate 3.75%* *This rate has not changed from tax year 2016.
Illinois Department of Revenue Tax rate 3.75%* Booklet IL-700-T Illinois Withholding Tax Tables Effective January 1, 2017 *This rate has not changed from tax year 2016. Table of Contents General Information
More informationUNIVERSITY OF KWAZULU-NATAL
UNIVERSITY OF KWAZULU-NATAL EXAMINATIONS: June 006 Subject, course and code: Mathematics 34 (MATH34P Duration: 3 hours Total Marks: 00 INTERNAL EXAMINERS: Mrs. A. Campbell, Mr. P. Horton, Dr. M. Banda
More informationFINANCIAL DECISION RULES FOR PROJECT EVALUATION SPREADSHEETS
FINANCIAL DECISION RULES FOR PROJECT EVALUATION SPREADSHEETS This note is some basic information that should help you get started and do most calculations if you have access to spreadsheets. You could
More informationMathematics for Economists
Department of Economics Mathematics for Economists Chapter 4 Mathematics of Finance Econ 506 Dr. Mohammad Zainal 4 Mathematics of Finance Compound Interest Annuities Amortization and Sinking Funds Arithmetic
More informationAPPENDIX E. Time Value of Money SOLUTIONS TO BRIEF EXERCISES. Accumulated amount = $9,000 + $5,400 = $14,400
APPENDIX E Time Value of Money SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE E-1 (a) Interest = p X i X n I = $9,000 X.05 X 12 years I = $5,400 Accumulated amount = $9,000 + $5,400 = $14,400 (b) Future value
More informationMENTAL CALCULATION. 1. RE-ARRANGING When trying to add a row of numbers, we should look for pairs that add up to make a multiple of 10 or 100
MENTAL CALCULATION 1. RE-ARRANGING When trying to add a row of numbers, we should look for pairs that add up to make a multiple of 10 or 100 e.e. 13 + 8 + 7 + 6 + 2 13 + 8 + 7 + 6 + 2 20 10 2. UNITS, 20
More information