I = Prt. = P(1+i) n. A = Pe rt

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "I = Prt. = P(1+i) n. A = Pe rt"

Transcription

1 11

2 Chapte 6 Matheatcs of Fnance We wll look at the atheatcs of fnance. 6.1 Sple and Copound Inteest We wll look at two ways nteest calculated on oney. If pncpal pesent value) aount P nvested at nteest ate pe yea ove te t, sple nteest, I, s and total accuulated aount, A, s I = Pt A = P +I = P +Pt = P1+t). If s nteest peods pe yea, and n = t s total nube of nteest peods, total accuulated aount assung copound nteest s A = P 1+ ) t = P1+) n. If nteest ate copounded contnuously, total accuulated aount afte t yeas whee e = A = Pe t Execse 6.1 Sple and Copound Inteest) 1. Sple Inteest: A = P +Pt. a) If $ s nvested at 11% sple nteest, calculate ts value afte 8 yeas. A = P +Pt = +0.11)8) = 1116 / 1216 /

3 116 Chapte 6. Matheatcs of Fnance LECTURE NOTES 7) b) If $221 s nvested at % sple nteest, ts value afte 2.5 yeas s A = P +Pt = )2.5) = / 76.2 / 86.2 c) If $5 s nvested at 5% sple nteest, ts value afte 13.1 yeas s A = P +Pt = )13.1) = 3.8 / 7.3 / Copound Inteest: A = P 1+ ) t = P1+) n. a) If $321 s nvested at 2.5% nteest copounded quately, calculate ts value afte 7 yeas. A = P ) t ) 7) 1+ = = / / Calculato: /) 7) b) If $113 s nvested at 2.5% nteest copounded onthly, calculate ts value afte 3.7 yeas. A = ) t ) 12) = = / / Calculato: /12) ) c) If $121 s nvested at 3% annual nteest copounded daly assue 365 days pe yea), calculate ts value afte yeas. A = ) t ) 365) 1+ = = / / Calculato: /365) 365 ) d) If $ s nvested at 11% nteest copounded yealy o annually), calculate ts value afte 8 yeas. A = ) t ) 18) 1+ = = / / e) If $ s nvested at 11% nteest copounded onthly, calculate ts value afte 8 yeas. A = ) t ) 12)8 1+ = = / / Copound Inteest Contnuously): A = Pe t a) If $2000 s nvested at 7% nteest copounded contnuously, calculate ts value afte 3 yeas. A = Pe t = 2000e 0.073) = / / Calculato: 2000e ) b) If $00 s nvested at 6.5% nteest copounded contnuously, calculate ts value afte 3.5 yeas. A = Pe t = 00e ) = / / c) If $ s nvested at 11% nteest copounded contnuously, calculate ts value afte 8 yeas. A = Pe t = e 0.118) = / /

4 Secton 1. Sple and Copound Inteest LECTURE NOTES 7) 117 d) An aount $ nvested at 11% sple nteest $1316) s lesse / geate than $ nvested at 11% nteest copounded annually $ ) lesse / geate than $ nvested at 11% nteest copounded onthly $ ) lesse / geate than $ nvested at 11% nteest copounded contnuously $ ) afte 8 yeas.. Related questons. a) Inteest ate,?. If A =, P =, t = 10 yeas, nteest copounded yealy Snce A = P ) t, ) 110) 1+ then = 1+ 1 o 1+) 10 = o takng tenth oot of both sdes, 1+ = ) 1/10 ) 1/10 o = 1 0. / 0.39 / 0.7. Calculato: /) 0.1) 1. If A =, P =, t = 10 yeas, nteest copounded onthly Snce A = P ) t, ) 1210) ) = o = o takng 120th oot of both sdes, 1+ = ) 1/120 ) ) 1/ o = / 0.39 / 0.7. Calculato: 12 /) 1/120) 1) b) Nube of nteest peods, n = t?. If A =, P =, = nteest copounded yealy Snce A = P ) t, ) t 1+ = 1+ 1 o 1+) t = o takng natual logs of both sdes, ln1+) t = ln o tln1+) = ln o n = t = ln ln1.08 Calculato: ln/)/ ln1.08) 8 / 50 / 52.. If A =, P =, = nteest copounded onthly Snce A = P ) t, ) t ) t 1+ = o = o takng natual logs of both sdes, ln ) t = ln o ) 12tln = ln o n = 12t = ln ln1+ Calculato: ln/)/ ln1 + /12) c) Pncpal, P? 563 / 578 / If A =, t = 5 yeas, = nteest copounded yealy Snce A = P ) t, ) ) 1+ = P 1+ 1

5 118 Chapte 6. Matheatcs of Fnance LECTURE NOTES 7) o P = 1+) / / Calculato: ). If A =, t = 5 yeas, = nteest copounded onthly Snce A = P ) t, ) 125) 1+ = P o P = ) / / Calculato: 1+/12) 60) d) Othe. Two hunded dollas $200) s deposted onthly nto account payng 6.25% copounded onthly. Afte 3 yeas, accuulated aount s put nto 2-yea cetfcate whch pays 8% copounded quately. Detene fnal accuulated aount. A = ) t ) 123) 1+ = / Calculato: /12) 36) A = 1+ ) t ) 2) = / Calculato: /) 8) 5. Usng the TI 83 Calculato: Copound Inteest. Detene the futue value of $ whch s nvested at 11% nteest whch s copounded onthly afte 8.3 yeas. Pess APPS ENTER FINANCE ENTER TVM Solve ENTER. Set the TVM Solve paaetes as N = 8.3, I% = 11, PV =, PMT = 0, FV = 0, P/Y = 1, C/Y = 12. Aow back to FV and then pess ALPHA ENTER. The answe FV = appeas. N stands fo nube of yeas. I% s the yealy nteest ate. PV stands fo pesent value and s typed n as a negatve nube because t s consdeed as an outflow of cash. PMT s the payent aount, whch, n ths case, does not apply and so s set to zeo. FV s futue value and s the vaable we ae tyng to detene n ths queston. P/Y s the nube of payent peods pe yea, whch, n ths case, does not apply and so s set to one. C/Y s the nube of copoundng peods pe yea. 6.2 Odnay Annutes We wll look at annutes a sequence of payents ade at egula te ntevals); oe specfcally, odnay annutes annuty whee nteest on payents copounded at sae te payent ade). If pncpal pesent value) aount P nvested at nteest ate pe yea ove te t, s nteest peods pe yea, and n = t s total nube of nteest peods, futue value of an odnay annuty, ) t 1+ [ 1 1+) n ] 1 A = p = p payents to a snkng fund, [ ] ) p = A ) t = A ) n 1

6 Secton 2. Odnay Annutes LECTURE NOTES 7) 119 odnay annuty foula, A = P 1+ ) ) t t +p 1+ 1 pesent value of an odnay annuty, 1 1+ P = p ) t = P1+) n +p = p [ ] 1 1+) n. [ 1+) n ] 1 Execse 6.2 Odnay Annutes) 1. Futue value of an annuty: A = p [ ] 1+ ) t 1 = p [ ] 1+) n 1 a) Futue value of 5 yea te annuty, $100 pad each quate, eanng nteest [ at 8.5% annually, ] copounded [ quately, ] s 1+ A = p ) t ) 1 = / Calculato: /) 20) 1)/5/) b) Futue value of 3 yea te annuty, $120 pad each onth, eanng nteest at 9.5% [ annually, ] copounded [ onthly, ] s 1+ A = p ) t ) 1 = / Calculato: /12) 36) 1)/0.095/12) c) Futue value of 3.2 yea te annuty, $105 pad each day, eanng nteest at 6.5% [ annually, ] copounded [ daly 365 days), ] s 1+ A = p ) t ) ) 1 = ,313.0 / 136, Calculato: /365) ) 1)/0.065/365) 2. Payents to snkng fund: p = A [ ) 1+ ) t 1 ] = A [ ] 1+) n 1 a) Lab of coputes eplaced n 3 yeas te fo antcpated futue) cost of $25,000 whee $25,000 accuulated ove 3 yea peod though equal nstallents ade at end of each onth. If yealy nteest ate s 8.5%, sze of[ each nstallent ] s [ ] p = A ) = / / ) t ) 1 Calculato: /12)/1 + 5/12) 36) 1)

7 120 Chapte 6. Matheatcs of Fnance LECTURE NOTES 7) b) Quately annuty equed futue) snkng fund of $30,000, needed afte 5 yeas, [ f yealy nteest ] ate [ s 7.5%, s ] p = A ) = / ) t ) 1 Calculato: /)/ /) 20) 1) 3. Odnay annuty foula: A = P 1+ ) t +p [ 1+ ) t 1 a) If $ s nvested now at 11% nteest copounded quately and also $120 s added each quate, calculate value of nvestent afte 8 yeas. A = [ ] ) t p ) t 1 = [ ] ) 8) ) / Calculato: /) 32) /) 32) 1)/0.11/) b) If $600 s nvested now at 1% nteest copounded seannually and also $100 s added evey sx onths, calculate value of nvestent afte 5 yeas. A = [ ] ) t p ) t 1 = 600 [ ] ) 25) ) 23) / Calculato: /2) 10) /2) 10) 1)/0.01/2) [ ] 1 1+ ) t. Pesent value of an annuty: P = p ] = p [ ] 1 1+) n a) Pesent value of 5 yea te annuty, $100 pad each quate, eanng 8.5% yealy[ nteest, copounded ] [ quately, s ] 1 1+ P = p ) t 1 1+ = ) / Calculato: /) 20))/5/) b) Pesent value of 3 yea te annuty, $120 pad onthly, eanng 9.5% yealy[ nteest, copounded ] [ onthly, s ] 1 1+ P = p ) t 1 1+ = ) / Calculato: /12) 36))/0.095/12) c) Pesent value of 7 yea te annuty, $97 pad onthly, eanng 9.5% yealy nteest, [ copounded ] daly [ 365 days), s ] 1 1+ P = p ) t 1 1+ = ) 3657) ,006 / 181, Calculato: /365) 365 7))/0.095/365)

8 Secton 3. Consue Loans and APR LECTURE NOTES 7) Consue Loans and APR Annual pecentage ate APR) o effectve nteest ate allows consues to copae dffeent nteest ates. Assung pncpal pesent value) aount s P, nteest ate s pe yea, s nteest peods pe yea, APR s APR = 1+ ) 1 = 1+) 1 aotzaton, aount of payents to ete a load, [ ] ) p = P 1 ) t = P ) n aotzaton, nube of payents to ete a load, ) p ) ln p P n = ) ln ) = ln p p P 1+ ln1+) Aotzaton table o aotzaton schedule s also dscussed. Execse 6.3 Consue Loans and APR) 1. APR = 1+ ) 1 = 1+) 1. Whch s lage: 10% copounded onthly o 10.2% copounded quately? a) Afte 1 yea, $1 nvested 10% copounded onthly, A = P ) t ) 121) 1+ = / / Calculato: /12) 12) so nteest eaned n one yea s ths aount subtact $1, APR = 1+ ) / / o 10.7% Calculato: /12) 12) 1 b) Afte 1 yea, $1 nvested 10.2% copounded quately, A = P ) t ) 1) 1+ = / / Calculato: /) ) so nteest eaned n one yea, APR = 1+ ) 1 = / / o 10.60% Calculato: /) ) 1 c) Consequently, 10% copounded onthly APR: 10.7%) s less / oe than 10.2% copounded quately APR: 10.60%). [ ] 2. Aotzaton, aount of payents to ete a loan: p = P ) 1 1+ ) t

9 122 Chapte 6. Matheatcs of Fnance LECTURE NOTES 7) a) Ca loan of $25,000 epad onthly ove 3 yea peod, yealy nteest 8.5%. [ Aount of each ] nstallent [ ] p = P ) = ) t / )3 Calculato: /12)/ /12) 36)) b) House loan of $125,000 epad quately ove 20 yea peod, yealy nteest 7.5%. [ Aount of each ] nstallent [ ] p = P ) = ) t / )20 Calculato: /)/ /) 80)) c) Aotzaton table. Loan of $5,000 epad quately ove 1.5 yea peod, yealy nteest 8.5%. Aount [ of each nstallent ] [ ] p = P ) 1 1+ ) t = )1.5 Calculato: /)/ /) 6)) / payent aount nteest pncpal balance To begn, nteest = = , then pncpal = = 790., and balance = = , then nteest = and so on. d) Tue / False. Aotzaton detenes sequence of payents annuty) equvalent to pesent lup su, wheeas snkng fund detenes annuty equvalent to futue lup su. 3. Aotzaton, nube of payents to ete a loan: n = ln ) p p P ) ln1+ ) = ln p P) ln1+) a) Nube of quately $1000 payents ) to epay ca loan of $25,000, 8.5%: ) n = ln 1000 p ln p P ) = / o 37 payents ln1+ ) ln1+ 5 Calculato: ln1000/ /))/ ln1 + 5/) b) Nube of onthly $1000 payents ) to epay house loan of $125,000, 7%: ) n = ln 1000 p ln p P ) = / o 225 payents ln1+ ) ln Calculato: ln1000/ /12))/ ln /12)

9.5 Amortization. Objectives

9.5 Amortization. Objectives 9.5 Aotization Objectives 1. Calculate the payent to pay off an aotized loan. 2. Constuct an aotization schedule. 3. Find the pesent value of an annuity. 4. Calculate the unpaid balance on a loan. Congatulations!

More information

9.4 Annuities. Objectives. 1. Calculate the future value of an ordinary annuity. 2. Perform calculations regarding sinking funds.

9.4 Annuities. Objectives. 1. Calculate the future value of an ordinary annuity. 2. Perform calculations regarding sinking funds. 9.4 Annuities Objectives 1. Calculate the futue value of an odinay annuity. 2. Pefo calculations egading sinking funds. Soewhee ove the ainbow... skies ae blue,... and the deas that you dae to dea...eally

More information

AMB111F Financial Maths Notes

AMB111F Financial Maths Notes AMB111F Financial Maths Notes Compound Inteest and Depeciation Compound Inteest: Inteest computed on the cuent amount that inceases at egula intevals. Simple inteest: Inteest computed on the oiginal fixed

More information

Time Value of Money. Types of Interest. Compounding and Discounting Single Sums. Page 1. Ch. 6 - The Time Value of Money. The Time Value of Money

Time Value of Money. Types of Interest. Compounding and Discounting Single Sums. Page 1. Ch. 6 - The Time Value of Money. The Time Value of Money Ch. 6 - The Tme Value of Money Tme Value of Money The Interest Rate Smple Interest Compound Interest Amortzng a Loan FIN21- Ahmed Y, Dasht TIME VALUE OF MONEY OR DISCOUNTED CASH FLOW ANALYSIS Very Important

More information

7.5. Present Value of an Annuity. Investigate

7.5. Present Value of an Annuity. Investigate 7.5 Present Value of an Annuty Owen and Anna are approachng retrement and are puttng ther fnances n order. They have worked hard and nvested ther earnngs so that they now have a large amount of money on

More information

FI3300 Corporate Finance

FI3300 Corporate Finance Leaning Objectives FI00 Copoate Finance Sping Semeste 2010 D. Isabel Tkatch Assistant Pofesso of Finance Calculate the PV and FV in multi-peiod multi-cf time-value-of-money poblems: Geneal case Pepetuity

More information

Section 2.2 Future Value of an Annuity

Section 2.2 Future Value of an Annuity Secton 2.2 Future Value of an Annuty Annuty s any sequence of equal perodc payments. Depost s equal payment each nterval There are two basc types of annutes. An annuty due requres that the frst payment

More information

Lecture 3: Force of Interest, Real Interest Rate, Annuity

Lecture 3: Force of Interest, Real Interest Rate, Annuity Lecture 3: Force of Interest, Real Interest Rate, Annuty Goals: Study contnuous compoundng and force of nterest Dscuss real nterest rate Learn annuty-mmedate, and ts present value Study annuty-due, and

More information

CONCEPT OF TIME AND VALUE OFMONEY. Simple and Compound interest

CONCEPT OF TIME AND VALUE OFMONEY. Simple and Compound interest CONCEPT OF TIME AND VALUE OFMONEY Simple and Compound inteest What is the futue value of shs 10,000 invested today to ean an inteest of 12% pe annum inteest payable fo 10 yeas and is compounded; a. Annually

More information

10.2 Future Value and Present Value of an Ordinary Simple Annuity

10.2 Future Value and Present Value of an Ordinary Simple Annuity 348 Chapter 10 Annutes 10.2 Future Value and Present Value of an Ordnary Smple Annuty In compound nterest, 'n' s the number of compoundng perods durng the term. In an ordnary smple annuty, payments are

More information

Section 2.3 Present Value of an Annuity; Amortization

Section 2.3 Present Value of an Annuity; Amortization Secton 2.3 Present Value of an Annuty; Amortzaton Prncpal Intal Value PV s the present value or present sum of the payments. PMT s the perodc payments. Gven r = 6% semannually, n order to wthdraw $1,000.00

More information

Lecture 3: Annuity. Study annuities whose payments form a geometric progression or a arithmetic progression.

Lecture 3: Annuity. Study annuities whose payments form a geometric progression or a arithmetic progression. Lecture 3: Annuty Goals: Learn contnuous annuty and perpetuty. Study annutes whose payments form a geometrc progresson or a arthmetc progresson. Dscuss yeld rates. Introduce Amortzaton Suggested Textbook

More information

EXAMPLE PROBLEMS SOLVED USING THE SHARP EL-733A CALCULATOR

EXAMPLE PROBLEMS SOLVED USING THE SHARP EL-733A CALCULATOR EXAMPLE PROBLEMS SOLVED USING THE SHARP EL-733A CALCULATOR 8S CHAPTER 8 EXAMPLES EXAMPLE 8.4A THE INVESTMENT NEEDED TO REACH A PARTICULAR FUTURE VALUE What amount must you nvest now at 4% compoune monthly

More information

est using the formula I = Prt, where I is the interest earned, P is the principal, r is the interest rate, and t is the time in years.

est using the formula I = Prt, where I is the interest earned, P is the principal, r is the interest rate, and t is the time in years. 9.2 Inteest Objectives 1. Undestand the simple inteest fomula. 2. Use the compound inteest fomula to find futue value. 3. Solve the compound inteest fomula fo diffeent unknowns, such as the pesent value,

More information

Simple Interest Loans (Section 5.1) :

Simple Interest Loans (Section 5.1) : Chapter 5 Fnance The frst part of ths revew wll explan the dfferent nterest and nvestment equatons you learned n secton 5.1 through 5.4 of your textbook and go through several examples. The second part

More information

Solution: Let i = 10% and d = 5%. By definition, the respective forces of interest on funds A and B are. i 1 + it. S A (t) = d (1 dt) 2 1. = d 1 dt.

Solution: Let i = 10% and d = 5%. By definition, the respective forces of interest on funds A and B are. i 1 + it. S A (t) = d (1 dt) 2 1. = d 1 dt. Chapter 9 Revew problems 9.1 Interest rate measurement Example 9.1. Fund A accumulates at a smple nterest rate of 10%. Fund B accumulates at a smple dscount rate of 5%. Fnd the pont n tme at whch the forces

More information

Products of the Second Pillar Pension

Products of the Second Pillar Pension Óbuda Univesity e-bulletin Vol. 4, No. 1, 2014 Poducts of the Second Pilla Pension Jana Špiková Depatent of Quantitative Methods and Infoation Systes, Faculty of Econoics, Matej Bel Univesity Tajovského

More information

Section 5.3 Annuities, Future Value, and Sinking Funds

Section 5.3 Annuities, Future Value, and Sinking Funds Secton 5.3 Annutes, Future Value, and Snkng Funds Ordnary Annutes A sequence of equal payments made at equal perods of tme s called an annuty. The tme between payments s the payment perod, and the tme

More information

Manual for SOA Exam FM/CAS Exam 2.

Manual for SOA Exam FM/CAS Exam 2. Manual for SOA Exa FM/CAS Exa 2. Chapter 1. Basic Interest Theory. c 2008. Miguel A. Arcones. All rights reserved. Extract fro: Arcones Manual for the SOA Exa FM/CAS Exa 2, Financial Matheatics. Spring

More information

In our example i = r/12 =.0825/12 At the end of the first month after your payment is received your amount owed is. P (1 + i) A

In our example i = r/12 =.0825/12 At the end of the first month after your payment is received your amount owed is. P (1 + i) A Amortzed loans: Suppose you borrow P dollars, e.g., P = 100, 000 for a house wth a 30 year mortgage wth an nterest rate of 8.25% (compounded monthly). In ths type of loan you make equal payments of A dollars

More information

TIME VALUE OF MONEY PROBLEMS CHAPTERS THREE TO TEN

TIME VALUE OF MONEY PROBLEMS CHAPTERS THREE TO TEN TIME VLUE OF MONEY PROBLEMS CHPTERS THREE TO TEN Probles In how any years $ will becoe $265 if = %? 265 ln n 933844 9 34 years ln( 2 In how any years will an aount double if = 76%? ln 2 n 9 46 years ln76

More information

1. Math 210 Finite Mathematics

1. Math 210 Finite Mathematics 1. ath 210 Fnte athematcs Chapter 5.2 and 5.3 Annutes ortgages Amortzaton Professor Rchard Blecksmth Dept. of athematcal Scences Northern Illnos Unversty ath 210 Webste: http://math.nu.edu/courses/math210

More information

Thursday, December 10, 2009 Noon - 1:50 pm Faraday 143

Thursday, December 10, 2009 Noon - 1:50 pm Faraday 143 1. ath 210 Fnte athematcs Chapter 5.2 and 4.3 Annutes ortgages Amortzaton Professor Rchard Blecksmth Dept. of athematcal Scences Northern Illnos Unversty ath 210 Webste: http://math.nu.edu/courses/math210

More information

Using Series to Analyze Financial Situations: Present Value

Using Series to Analyze Financial Situations: Present Value 2.8 Usng Seres to Analyze Fnancal Stuatons: Present Value In the prevous secton, you learned how to calculate the amount, or future value, of an ordnary smple annuty. The amount s the sum of the accumulated

More information

Section 5.4 Annuities, Present Value, and Amortization

Section 5.4 Annuities, Present Value, and Amortization Secton 5.4 Annutes, Present Value, and Amortzaton Present Value In Secton 5.2, we saw that the present value of A dollars at nterest rate per perod for n perods s the amount that must be deposted today

More information

Basic Financial Mathematics

Basic Financial Mathematics Financial Engineeing and Computations Basic Financial Mathematics Dai, Tian-Shy Outline Time Value of Money Annuities Amotization Yields Bonds Time Value of Money PV + n = FV (1 + FV: futue value = PV

More information

8.4. Annuities: Future Value. INVESTIGATE the Math. 504 8.4 Annuities: Future Value

8.4. Annuities: Future Value. INVESTIGATE the Math. 504 8.4 Annuities: Future Value 8. Annutes: Future Value YOU WILL NEED graphng calculator spreadsheet software GOAL Determne the future value of an annuty earnng compound nterest. INVESTIGATE the Math Chrstne decdes to nvest $000 at

More information

Mathematics of Finance

Mathematics of Finance 5 Mathematcs of Fnance 5.1 Smple and Compound Interest 5.2 Future Value of an Annuty 5.3 Present Value of an Annuty;Amortzaton Chapter 5 Revew Extended Applcaton:Tme, Money, and Polynomals Buyng a car

More information

A Master Time Value of Money Formula. Floyd Vest

A Master Time Value of Money Formula. Floyd Vest A Master Tme Value of Money Formula Floyd Vest For Fnancal Functons on a calculator or computer, Master Tme Value of Money (TVM) Formulas are usually used for the Compound Interest Formula and for Annutes.

More information

Finite Math Chapter 10: Study Guide and Solution to Problems

Finite Math Chapter 10: Study Guide and Solution to Problems Fnte Math Chapter 10: Study Gude and Soluton to Problems Basc Formulas and Concepts 10.1 Interest Basc Concepts Interest A fee a bank pays you for money you depost nto a savngs account. Prncpal P The amount

More information

In our example i = r/12 =.0825/12 At the end of the first month after your payment is received your amount in the account, the balance, is

In our example i = r/12 =.0825/12 At the end of the first month after your payment is received your amount in the account, the balance, is Payout annutes: Start wth P dollars, e.g., P = 100, 000. Over a 30 year perod you receve equal payments of A dollars at the end of each month. The amount of money left n the account, the balance, earns

More information

10. (# 45, May 2001). At time t = 0, 1 is deposited into each of Fund X and Fund Y. Fund X accumulates at a force of interest

10. (# 45, May 2001). At time t = 0, 1 is deposited into each of Fund X and Fund Y. Fund X accumulates at a force of interest 1 Exam FM questons 1. (# 12, May 2001). Bruce and Robbe each open up new bank accounts at tme 0. Bruce deposts 100 nto hs bank account, and Robbe deposts 50 nto hs. Each account earns an annual e ectve

More information

Understanding Financial Management: A Practical Guide Guideline Answers to the Concept Check Questions

Understanding Financial Management: A Practical Guide Guideline Answers to the Concept Check Questions Udestadig Fiacial Maagemet: A Pactical Guide Guidelie Aswes to the Cocept Check Questios Chapte 4 The Time Value of Moey Cocept Check 4.. What is the meaig of the tems isk-etu tadeoff ad time value of

More information

FINANCIAL MATHEMATICS. A Practical Guide for Actuaries. and other Business Professionals

FINANCIAL MATHEMATICS. A Practical Guide for Actuaries. and other Business Professionals FINANCIAL MATHEMATICS A Practcal Gude for Actuares and other Busness Professonals Second Edton CHRIS RUCKMAN, FSA, MAAA JOE FRANCIS, FSA, MAAA, CFA Study Notes Prepared by Kevn Shand, FSA, FCIA Assstant

More information

The Time Value of Money

The Time Value of Money he ime Value of Money Inteest Rates and Futue Value Inteest ates ae a facto in the valuation of vitually all financial instuments. While all money maket ates () ae quoted on an annual basis (PR nnual Pecentage

More information

0.02t if 0 t 3 δ t = 0.045 if 3 < t

0.02t if 0 t 3 δ t = 0.045 if 3 < t 1 Exam FM questons 1. (# 12, May 2001). Bruce and Robbe each open up new bank accounts at tme 0. Bruce deposts 100 nto hs bank account, and Robbe deposts 50 nto hs. Each account earns an annual effectve

More information

Section 5.1 - Compound Interest

Section 5.1 - Compound Interest Section 5.1 - 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 have: Interest: Accumulated

More information

GESTÃO FINANCEIRA II PROBLEM SET 1 - SOLUTIONS

GESTÃO FINANCEIRA II PROBLEM SET 1 - SOLUTIONS GESTÃO FINANCEIRA II PROBLEM SET 1 - SOLUTIONS (FROM BERK AND DEMARZO S CORPORATE FINANCE ) LICENCIATURA UNDERGRADUATE COURSE 1 ST SEMESTER 2010-2011 Chapte 1 The Copoation 1-13. What is the diffeence

More information

AS 2553a Mathematics of finance

AS 2553a Mathematics of finance AS 2553a Mathematcs of fnance Formula sheet November 29, 2010 Ths ocument contans some of the most frequently use formulae that are scusse n the course As a general rule, stuents are responsble for all

More information

Main TVM functions of a BAII Plus Financial Calculator

Main TVM functions of a BAII Plus Financial Calculator Main TVM functions of a BAII Plus Financial Calculator The BAII Plus calculator can be used to perform calculations for problems involving compound interest and different types of annuities. (Note: there

More information

first complete "prior knowlegde" -- to refresh knowledge of Simple and Compound Interest.

first complete prior knowlegde -- to refresh knowledge of Simple and Compound Interest. ORDINARY SIMPLE ANNUITIES first complete "prior knowlegde" -- to refresh knowledge of Simple and Compound Interest. LESSON OBJECTIVES: students will learn how to determine the Accumulated Value of Regular

More information

Continuous Compounding and Annualization

Continuous Compounding and Annualization Continuous Compounding and Annualization Philip A. Viton Januay 11, 2006 Contents 1 Intoduction 1 2 Continuous Compounding 2 3 Pesent Value with Continuous Compounding 4 4 Annualization 5 5 A Special Poblem

More information

A New replenishment Policy in a Two-echelon Inventory System with Stochastic Demand

A New replenishment Policy in a Two-echelon Inventory System with Stochastic Demand A ew eplenshment Polcy n a wo-echelon Inventoy System wth Stochastc Demand Rasoul Haj, Mohammadal Payesh eghab 2, Amand Babol 3,2 Industal Engneeng Dept, Shaf Unvesty of echnology, ehan, Ian (haj@shaf.edu,

More information

STUDENT RESPONSE TO ANNUITY FORMULA DERIVATION

STUDENT RESPONSE TO ANNUITY FORMULA DERIVATION Page 1 STUDENT RESPONSE TO ANNUITY FORMULA DERIVATION C. Alan Blaylock, Hendeson State Univesity ABSTRACT This pape pesents an intuitive appoach to deiving annuity fomulas fo classoom use and attempts

More information

TIME VALUE OF MONEY PROBLEM #4: PRESENT VALUE OF AN ANNUITY

TIME VALUE OF MONEY PROBLEM #4: PRESENT VALUE OF AN ANNUITY TIME VALUE OF MONEY PROBLEM #4: PRESENT VALUE OF AN ANNUITY Professor Peter Harris Mathematics by Dr. Sharon Petrushka Introduction In this assignment we will discuss how to calculate the Present Value

More information

THE VALUE OF MONEY PROBLEM #3: ANNUITY. Professor Peter Harris Mathematics by Dr. Sharon Petrushka. Introduction

THE VALUE OF MONEY PROBLEM #3: ANNUITY. Professor Peter Harris Mathematics by Dr. Sharon Petrushka. Introduction THE VALUE OF MONEY PROBLEM #3: ANNUITY Professor Peter Harris Mathematics by Dr. Sharon Petrushka Introduction Earlier, we explained how to calculate the future value of a single sum placed on deposit

More information

Research on Cloud Computing Load Balancing Based on Virtual Machine Migration

Research on Cloud Computing Load Balancing Based on Virtual Machine Migration Send Odes fo Repnts to epnts@benthascence.ae 334 The Open Cybenetcs & Systecs Jounal, 205, 9, 334-340 Open Access Reseach on Cloud Coputng Load Balancng Based on Vtual Machne Mgaton Lu Kun,*, Xu Gaochao

More information

How Much Should a Firm Borrow. Effect of tax shields. Capital Structure Theory. Capital Structure & Corporate Taxes

How Much Should a Firm Borrow. Effect of tax shields. Capital Structure Theory. Capital Structure & Corporate Taxes How Much Should a Fim Boow Chapte 19 Capital Stuctue & Copoate Taxes Financial Risk - Risk to shaeholdes esulting fom the use of debt. Financial Leveage - Incease in the vaiability of shaeholde etuns that

More information

CALCULATOR HINTS ANNUITIES

CALCULATOR HINTS ANNUITIES CALCULATOR HINTS ANNUITIES CALCULATING ANNUITIES WITH THE FINANCE APP: Select APPS and then press ENTER to open the Finance application. SELECT 1: TVM Solver The TVM Solver displays the time-value-of-money

More information

Simultaneous Detection and Estimation, False Alarm Prediction for a Continuous Family of Signals in Gaussian Noise

Simultaneous Detection and Estimation, False Alarm Prediction for a Continuous Family of Signals in Gaussian Noise Sultaneous Detecton and Estaton, False Ala Pedcton fo a Contnuous Faly of Sgnals n Gaussan Nose D Mchael Mlde, Robet G Lndgen, and Mos M Bean Abstact New pobles ase when the standad theoy of jont detecton

More information

Classic Problems at a Glance using the TVM Solver

Classic Problems at a Glance using the TVM Solver C H A P T E R 2 Classc Problems at a Glace usg the TVM Solver The table below llustrates the most commo types of classc face problems. The formulas are gve for each calculato. A bref troducto to usg the

More information

Level Annuities with Payments Less Frequent than Each Interest Period

Level Annuities with Payments Less Frequent than Each Interest Period Level Annutes wth Payments Less Frequent than Each Interest Perod 1 Annuty-mmedate 2 Annuty-due Level Annutes wth Payments Less Frequent than Each Interest Perod 1 Annuty-mmedate 2 Annuty-due Symoblc approach

More information

FINANCIAL MATHEMATICS

FINANCIAL MATHEMATICS 3 LESSON FINANCIAL MATHEMATICS Annutes What s an annuty? The term annuty s used n fnancal mathematcs to refer to any termnatng sequence of regular fxed payments over a specfed perod of tme. Loans are usually

More information

A) 3.1 B) 3.3 C) 3.5 D) 3.7 E) 3.9 Solution.

A) 3.1 B) 3.3 C) 3.5 D) 3.7 E) 3.9 Solution. ACTS 408 Instructor: Natala A. Humphreys SOLUTION TO HOMEWOR 4 Secton 7: Annutes whose payments follow a geometrc progresson. Secton 8: Annutes whose payments follow an arthmetc progresson. Problem Suppose

More information

Transformations and conservation laws

Transformations and conservation laws Tansfoatons an conseaton laws Gallean tansfoaton We anly use netal faes n whch a fee boy (no foces ale) oes wth a constant elocty. A fae ong wth a constant elocty wth esect to an netal fae s netal, too.

More information

4a 4ab b 4 2 4 2 5 5 16 40 25. 5.6 10 6 (count number of places from first non-zero digit to

4a 4ab b 4 2 4 2 5 5 16 40 25. 5.6 10 6 (count number of places from first non-zero digit to . Simplify: 0 4 ( 8) 0 64 ( 8) 0 ( 8) = (Ode of opeations fom left to ight: Paenthesis, Exponents, Multiplication, Division, Addition Subtaction). Simplify: (a 4) + (a ) (a+) = a 4 + a 0 a = a 7. Evaluate

More information

Gravitation. Definition of Weight Revisited. Newton s Law of Universal Gravitation. Newton s Law of Universal Gravitation. Gravitational Field

Gravitation. Definition of Weight Revisited. Newton s Law of Universal Gravitation. Newton s Law of Universal Gravitation. Gravitational Field Defnton of Weght evsted Gavtaton The weght of an object on o above the eath s the gavtatonal foce that the eath exets on the object. The weght always ponts towad the cente of mass of the eath. On o above

More information

GRADE 5 TEXAS. Multiplication and Division WORKSHEETS

GRADE 5 TEXAS. Multiplication and Division WORKSHEETS GRADE 5 TEXAS Multiplication and Division WORKSHEETS Multi-digit multiplication Multiplying lage numbes is a pocess of multiple steps. Fist, you multiply: 542 6 =,252 2 You have now used up all you ones.

More information

The values in the TVM Solver are quantities involved in compound interest and annuities.

The values in the TVM Solver are quantities involved in compound interest and annuities. Texas Instruments Graphing Calculators have a built in app that may be used to compute quantities involved in compound interest, annuities, and amortization. For the examples below, we ll utilize the screens

More information

Electric Potential. otherwise to move the object from initial point i to final point f

Electric Potential. otherwise to move the object from initial point i to final point f PHY2061 Enched Physcs 2 Lectue Notes Electc Potental Electc Potental Dsclame: These lectue notes ae not meant to eplace the couse textbook. The content may be ncomplete. Some topcs may be unclea. These

More information

Review Page 468 #1,3,5,7,9,10

Review Page 468 #1,3,5,7,9,10 MAP4C Financial Student Checklist Topic/Goal Task Prerequisite Skills Simple & Compound Interest Video Lesson Part Video Lesson Part Worksheet (pages) Present Value Goal: I will use the present value formula

More information

Mathematics of Finance

Mathematics of Finance Mathematcs of Fnance 5 C H A P T E R CHAPTER OUTLINE 5.1 Smple Interest and Dscount 5.2 Compound Interest 5.3 Annutes, Future Value, and Snkng Funds 5.4 Annutes, Present Value, and Amortzaton CASE STUDY

More information

Mathematics of Finance

Mathematics of Finance CHAPTER 5 Mathematcs of Fnance 5.1 Smple and Compound Interest 5.2 Future Value of an Annuty 5.3 Present Value of an Annuty; Amortzaton Revew Exercses Extended Applcaton: Tme, Money, and Polynomals Buyng

More information

3. Present value of Annuity Problems

3. Present value of Annuity Problems Mathematcs of Fnance The formulae 1. A = P(1 +.n) smple nterest 2. A = P(1 + ) n compound nterest formula 3. A = P(1-.n) deprecaton straght lne 4. A = P(1 ) n compound decrease dmshng balance 5. P = -

More information

= i δ δ s n and PV = a n = 1 v n = 1 e nδ

= i δ δ s n and PV = a n = 1 v n = 1 e nδ Exam 2 s Th March 19 You are allowe 7 sheets of notes an a calculator 41) An mportant fact about smple nterest s that for smple nterest A(t) = K[1+t], the amount of nterest earne each year s constant =

More information

IDENTIFICATION AND CORRECTION OF A COMMON ERROR IN GENERAL ANNUITY CALCULATIONS

IDENTIFICATION AND CORRECTION OF A COMMON ERROR IN GENERAL ANNUITY CALCULATIONS IDENTIFICATION AND CORRECTION OF A COMMON ERROR IN GENERAL ANNUITY CALCULATIONS Chrs Deeley* Last revsed: September 22, 200 * Chrs Deeley s a Senor Lecturer n the School of Accountng, Charles Sturt Unversty,

More information

Valuation of Floating Rate Bonds 1

Valuation of Floating Rate Bonds 1 Valuation of Floating Rate onds 1 Joge uz Lopez us 316: Deivative Secuities his note explains how to value plain vanilla floating ate bonds. he pupose of this note is to link the concepts that you leaned

More information

Annuities and loan. repayments. Syllabus reference Financial mathematics 5 Annuities and loan. repayments

Annuities and loan. repayments. Syllabus reference Financial mathematics 5 Annuities and loan. repayments 8 8A Futue value of a auity 8B Peset value of a auity 8C Futue ad peset value tables 8D Loa epaymets Auities ad loa epaymets Syllabus efeece Fiacial mathematics 5 Auities ad loa epaymets Supeauatio (othewise

More information

Perturbation Theory and Celestial Mechanics

Perturbation Theory and Celestial Mechanics Copyght 004 9 Petubaton Theoy and Celestal Mechancs In ths last chapte we shall sketch some aspects of petubaton theoy and descbe a few of ts applcatons to celestal mechancs. Petubaton theoy s a vey boad

More information

Example: Suppose that we deposit $1000 in a bank account offering 3% interest, compounded monthly. How will our money grow?

Example: Suppose that we deposit $1000 in a bank account offering 3% interest, compounded monthly. How will our money grow? Finance 111 Finance We have to work with oney every day. While balancing your checkbook or calculating your onthly expenditures on espresso requires only arithetic, when we start saving, planning for retireent,

More information

Personal Saving Rate (S Households /Y) SAVING AND INVESTMENT. Federal Surplus or Deficit (-) Total Private Saving Rate (S Private /Y) 12/18/2009

Personal Saving Rate (S Households /Y) SAVING AND INVESTMENT. Federal Surplus or Deficit (-) Total Private Saving Rate (S Private /Y) 12/18/2009 1 Pesonal Saving Rate (S Households /Y) 2 SAVING AND INVESTMENT 16.0 14.0 12.0 10.0 80 8.0 6.0 4.0 2.0 0.0-2.0-4.0 1959 1961 1967 1969 1975 1977 1983 1985 1991 1993 1999 2001 2007 2009 Pivate Saving Rate

More information

Learning Objectives. Chapter 2 Pricing of Bonds. Future Value (FV)

Learning Objectives. Chapter 2 Pricing of Bonds. Future Value (FV) Leaig Objectives Chapte 2 Picig of Bods time value of moey Calculate the pice of a bod estimate the expected cash flows detemie the yield to discout Bod pice chages evesely with the yield 2-1 2-2 Leaig

More information

INITIAL MARGIN CALCULATION ON DERIVATIVE MARKETS OPTION VALUATION FORMULAS

INITIAL MARGIN CALCULATION ON DERIVATIVE MARKETS OPTION VALUATION FORMULAS INITIAL MARGIN CALCULATION ON DERIVATIVE MARKETS OPTION VALUATION FORMULAS Vesion:.0 Date: June 0 Disclaime This document is solely intended as infomation fo cleaing membes and othes who ae inteested in

More information

Dick Schwanke Finite Math 111 Harford Community College Fall 2015

Dick Schwanke Finite Math 111 Harford Community College Fall 2015 Using Technology to Assist in Financial Calculations Calculators: TI-83 and HP-12C Software: Microsoft Excel 2007/2010 Session #4 of Finite Mathematics 1 TI-83 / 84 Graphing Calculator Section 5.5 of textbook

More information

Things to Remember. r Complete all of the sections on the Retirement Benefit Options form that apply to your request.

Things to Remember. r Complete all of the sections on the Retirement Benefit Options form that apply to your request. Retiement Benefit 1 Things to Remembe Complete all of the sections on the Retiement Benefit fom that apply to you equest. If this is an initial equest, and not a change in a cuent distibution, emembe to

More information

Exam #1 Review Answers

Exam #1 Review Answers xam #1 Review Answes 1. Given the following pobability distibution, calculate the expected etun, vaiance and standad deviation fo Secuity J. State Pob (R) 1 0.2 10% 2 0.6 15 3 0.2 20 xpected etun = 0.2*10%

More information

Finance Practice Problems

Finance Practice Problems Iteest Fiace Pactice Poblems Iteest is the cost of boowig moey. A iteest ate is the cost stated as a pecet of the amout boowed pe peiod of time, usually oe yea. The pevailig maket ate is composed of: 1.

More information

AREA COVERAGE SIMULATIONS FOR MILLIMETER POINT-TO-MULTIPOINT SYSTEMS USING STATISTICAL MODEL OF BUILDING BLOCKAGE

AREA COVERAGE SIMULATIONS FOR MILLIMETER POINT-TO-MULTIPOINT SYSTEMS USING STATISTICAL MODEL OF BUILDING BLOCKAGE Radoengneeng Aea Coveage Smulatons fo Mllmete Pont-to-Multpont Systems Usng Buldng Blockage 43 Vol. 11, No. 4, Decembe AREA COVERAGE SIMULATIONS FOR MILLIMETER POINT-TO-MULTIPOINT SYSTEMS USING STATISTICAL

More information

The LCOE is defined as the energy price ($ per unit of energy output) for which the Net Present Value of the investment is zero.

The LCOE is defined as the energy price ($ per unit of energy output) for which the Net Present Value of the investment is zero. Poject Decision Metics: Levelized Cost of Enegy (LCOE) Let s etun to ou wind powe and natual gas powe plant example fom ealie in this lesson. Suppose that both powe plants wee selling electicity into the

More information

Who Files for Bankruptcy? State Laws and the Characteristics of Bankrupt Households

Who Files for Bankruptcy? State Laws and the Characteristics of Bankrupt Households Who iles fo Bankuptcy? State Laws and the Chaacteistics of Bankupt Households By MICHLL M. MILLR While pio papes have exained the ipact of state exeption and ganishent laws on the aveage household, this

More information

Unit VI. Complete the table based on the following information:

Unit VI. Complete the table based on the following information: Aqr Review Unit VI Name 1. You have just finished medical school and you have been offered two jobs at a local hospital. The first one is a physical therapist for the hospital with a salary of $45,500.

More information

Texas Instruments 30X IIS Calculator

Texas Instruments 30X IIS Calculator Texas Instruments 30X IIS Calculator Keystrokes for the TI-30X IIS are shown for a few topcs n whch keystrokes are unque. Start by readng the Quk Start secton. Then, before begnnng a specfc unt of the

More information

Chapter 15 Debt and Taxes

Chapter 15 Debt and Taxes hapter 15 Debt and Taxes 15-1. Pelamed Pharmaceutcals has EBIT of $325 mllon n 2006. In addton, Pelamed has nterest expenses of $125 mllon and a corporate tax rate of 40%. a. What s Pelamed s 2006 net

More information

Time Value of Money Module

Time Value of Money Module Tme Value of Money Module O BJECTIVES After readng ths Module, you wll be able to: Understand smple nterest and compound nterest. 2 Compute and use the future value of a sngle sum. 3 Compute and use the

More information

FAIR VALUATION OF VARIOUS PARTICIPATION SCHEMES IN LIFE INSURANCE ABSTRACT

FAIR VALUATION OF VARIOUS PARTICIPATION SCHEMES IN LIFE INSURANCE ABSTRACT FAIR VALUAION OF VARIOUS PARIIPAION SHEMES IN LIFE INSURANE PIERRE DEVOLDER AND INMAULADA DOMÍNGUEZ-FABIÁN BY Insttut des Scences Actuaelles, Unvesté atholque de Louvan, 6 ue des Wallons, 348 Louvan la

More information

In this section, the functions of a financial calculator will be reviewed and some sample problems will be demonstrated.

In this section, the functions of a financial calculator will be reviewed and some sample problems will be demonstrated. Section 4: Using a Financial Calculator Tab 1: Introduction and Objectives Introduction In this section, the functions of a financial calculator will be reviewed and some sample problems will be demonstrated.

More information

Texas Instruments 30Xa Calculator

Texas Instruments 30Xa Calculator Teas Instruments 30Xa Calculator Keystrokes for the TI-30Xa are shown for a few topcs n whch keystrokes are unque. Start by readng the Quk Start secton. Then, before begnnng a specfc unt of the tet, check

More information

Solutions to Problems: Chapter 7

Solutions to Problems: Chapter 7 Solution to Poblem: Chapte 7 P7-1. P7-2. P7-3. P7-4. Authoized and available hae LG 2; Baic a. Maximum hae available fo ale Authoized hae 2,000,000 Le: Shae outtanding 1,400,000 Available hae 600,000 b.

More information

Spirotechnics! September 7, 2011. Amanda Zeringue, Michael Spannuth and Amanda Zeringue Dierential Geometry Project

Spirotechnics! September 7, 2011. Amanda Zeringue, Michael Spannuth and Amanda Zeringue Dierential Geometry Project Spiotechnics! Septembe 7, 2011 Amanda Zeingue, Michael Spannuth and Amanda Zeingue Dieential Geomety Poject 1 The Beginning The geneal consensus of ou goup began with one thought: Spiogaphs ae awesome.

More information

Key Concepts and Skills

Key Concepts and Skills McGraw-Hill/Irwin Copyright 2014 by the McGraw-Hill Companies, Inc. All rights reserved. Key Concepts and Skills Be able to compute: The future value of an investment made today The present value of cash

More information

Ignorance is not bliss when it comes to knowing credit score

Ignorance is not bliss when it comes to knowing credit score NET GAIN Scoing points fo you financial futue AS SEEN IN USA TODAY SEPTEMBER 28, 2004 Ignoance is not bliss when it comes to knowing cedit scoe By Sanda Block USA TODAY Fom Alabama comes eassuing news

More information

Using the Finance Menu of the TI-83/84/Plus calculators KEY

Using the Finance Menu of the TI-83/84/Plus calculators KEY Using the Finance Menu of the TI-83/84/Plus calculators KEY To get to the FINANCE menu On the TI-83 press 2 nd x -1 On the TI-83, TI-83 Plus, TI-84, or TI-84 Plus press APPS and then select 1:FINANCE The

More information

BEST INTEREST RATE. To convert a nominal rate to an effective rate, press

BEST INTEREST RATE. To convert a nominal rate to an effective rate, press FINANCIAL COMPUTATIONS George A. Jahn Chairman, Dept. of Mathematics Palm Beach Community College Palm Beach Gardens Location http://www.pbcc.edu/faculty/jahng/ The TI-83 Plus and TI-84 Plus have a wonderful

More information

Prejudice and the Economics of Discrimination

Prejudice and the Economics of Discrimination Pelmnay Pejudce and the Economcs of Dscmnaton Kewn Kof Chales Unvesty of Chcago and NB Jonathan Guyan Unvesty of Chcago GSB and NB Novembe 17, 2006 Abstact Ths pape e-examnes the ole of employe pejudce

More information

TIME VALUE OF MONEY PROBLEM #7: MORTGAGE AMORTIZATION

TIME VALUE OF MONEY PROBLEM #7: MORTGAGE AMORTIZATION TIME VALUE OF MONEY PROBLEM #7: MORTGAGE AMORTIZATION Professor Peter Harris Mathematics by Sharon Petrushka Introduction This problem will focus on calculating mortgage payments. Knowledge of Time Value

More information

Who Files for Bankruptcy? State Laws and the Characteristics of Bankrupt Households

Who Files for Bankruptcy? State Laws and the Characteristics of Bankrupt Households Who iles fo Bankuptcy? State Laws and the Chaacteistics of Bankupt Households Michelle M. Mille ssistant Pofesso Rutges Business School epatent of inance and Econoics Washington Pak, Roo 54 Newak, New

More information

TIME VALUE OF MONEY #6: TREASURY BOND. Professor Peter Harris Mathematics by Dr. Sharon Petrushka. Introduction

TIME VALUE OF MONEY #6: TREASURY BOND. Professor Peter Harris Mathematics by Dr. Sharon Petrushka. Introduction TIME VALUE OF MONEY #6: TREASURY BOND Professor Peter Harris Mathematics by Dr. Sharon Petrushka Introduction This problem assumes that you have mastered problems 1-5, which are prerequisites. In this

More information

Firstmark Credit Union Commercial Loan Department

Firstmark Credit Union Commercial Loan Department Fistmak Cedit Union Commecial Loan Depatment Thank you fo consideing Fistmak Cedit Union as a tusted souce to meet the needs of you business. Fistmak Cedit Union offes a wide aay of business loans and

More information

TVM Appendix B: Using the TI-83/84. Time Value of Money Problems on a Texas Instruments TI-83 1

TVM Appendix B: Using the TI-83/84. Time Value of Money Problems on a Texas Instruments TI-83 1 Before you start: Time Value of Money Problems on a Texas Instruments TI-83 1 To calculate problems on a TI-83, you have to go into the applications menu, the blue APPS key on the calculator. Several applications

More information

Activity 5 Calculating a Car Loan

Activity 5 Calculating a Car Loan Teaching Notes/Lesson Plan Objective Within this lesson, the participant will be able to use the Casio calculator to determine such information as monthly payment, interest rate, and total cost of the

More information