Computing future value, and present value

Open Ended

What two things you can you never eat for breakfast?

Read the short story in the next slide

Open Ended

Which servant do you thinmk have earned the masters praises and why?

Open Ended

Suppose your city is building a new park, and issues cash to raise the money to build it. You obtain a 1,000,000 bond that pays 15% interest annually that matures in 5 years. How much interest will you earn after 5 years?

Open Ended

Based on the data on the last slide, how much will be the CUMULATIVE INTEREST, and the TOTAL AMOUNT at the end of the compounding period?

Multiple Choice

What is P in the formula I=Prt?

• Percentage

• Principal amount

• Present amount

• Percent

Fill in the Blank

What is F in the formula $$P=\frac{F}{\left(1+r\right)^t}$$

Multiple Choice

What is the formula for simple in simple interest?

• $$I_s=\frac{P}{rt}$$

• $$I_s=\frac{r}{Pt}$$

• $$I_s=\Pr t$$

Fill in the Blank

It is the kind of interest where in the interest is computed on the principal only.

Multiple Choice

Which formula is not a formula under compound interest?

• $$F=P\left(1+j\right)^n$$

• $$P=\frac{F}{\left(1+j\right)^n}$$

• $$F=R\left(\frac{\left(1+j\right)^n-1}{j}\right)$$

• $$P=F\left(1+j\right)^{-n}$$

Fill in the Blank

What is F in the formula : $$P=\frac{F}{\left(1+r\right)^t}$$

Multiple Choice

Which of the following is not a formula in computing the interest and future value of compound interest?

• $$F=P\left(1+r\right)^t$$

• $$I_c=F\ -\ P$$

• $$I=\Pr t$$