8.5

8.5

Class Schedule

Monday          Nov 9           8.5

 

Wednesday    Nov 11           8.6

 

Monday          Nov 16           8.7 ** NOTEBOOK CHECK

 

Wednesday    Nov 18           review for upcoming quiz (8.5 – 8.8) 

 

Monday          Nov 23           8.8, 7.1

 

Wednesday    Nov 25           NO CLASS-THANKSGIVING

 

Class Schedule

Monday          Nov 30           7.2

 

Wednesday    Dec 2              quiz review (7.1 and 8.8)

 

Monday          Dec 7              7.3, 7.6, 12. 6

 

Wednesday    Dec 9             quiz review (7.2 and 12.6)

 

Monday          Dec 14            Final review   

 

Wednesday    Dec 16            Final review

QUESTIONS

Poll

Find the annuity and interest for each scenario.

$2000 deposited at the end of each year at a rate of 5% compounded annually for 20 years.

• $66,133 and $26,132

• $50,000 and $10,000

Poll

Find the annuity and interest.

$1000 deposited at the end of every 3 months at a rate of 6.25% compounded quarterly for 6 years.

• $28,850 and $4850

• $17019 and $11019

Poll

Find the annuity.

Suppose that at age 25 you deposit $50 at the end of each month in an IRA that pays 5.5% compounded monthly. How much will you have at age 65?

• $87,052

• $28,694

Poll

Determine the amount to be deposited.

Find the amount deposited at the end of each year at a rate of 6% compounded annually for 18 years to gain $140,000.

• $4530

• $3600

Poll

Find the amount deposited at the end of each month at a rate of 4.5% compound monthly for 10 years to reach $200,000.

• $1323

• $1276

Poll

I can invest $40,000 for 25 years in two ways (each at a rate of 6.5%). Which is the better investment?

Lump sum compounded annually or

$1600 at end of each year compounded annually

• lump sum

• $1600 at end of each year

Multiple Choice

PRACTICE: Find the annuity and the interest.

$3000 at the end of each year, at a rate of 4% compounded annually for 20 years.

• $89,334 and $29,239

• $6573 and $3573

• $5400 and $2400

Multiple Choice

PRACTICE: Find the annuity and the interest.

$150 at the end of every 6 months, at a rate of 6.5% compounded semiannually for 25 years.

• $18,225 and $10,725

• $8833 and $1333

Multiple Choice

Determine the deposit needed to reach the financial gain.

Deposited at the end of each year at 5% compounded monthly for 18 years to reach $150,000.

• $429.55

• $5331.93

• $13,888.89

Multiple Choice

Determine the deposit needed to reach the financial gain.

Deposited at the end of every 3 months at 4.5% compounded quarterly for 5 years to reach $25,000.

• $1121.63

• $4569.79

• $56.25

Multiple Choice

Which yields a better annuity?

$250 deposited at end of every month at 3.5% compounded monthly for 5 years or

$3000 deposited at the end of every year at 3.6% compounded annually for 5 years.

• compounded monthly

• compounded yearly

8.6 CAR PAYMENTS

 $PMT=\frac{P\left(\frac{r}{n}\right)}{\left(1-\left(1+\frac{r}{n}\right)^{-nt}\right)}$