Loans, Investments & Annuities

A reducing-balance loan is a...

• simple interest loan with regular repayments

• compound interest loan with regular payments

• simple interest loan without regular payments

• compound interest loan without regular payments

Tags

CCSS.8.EE.C.7B

Perpetuity

• The balance of the investment does not change

• An annuity with simple interest accruing each period

• An annuity with compound interest with regular payments

• An annuity with regular withdrawals equal to the interest earned

An annuity involves

• Compound Interest

• Regular Payments or Withdrawals

• Simple Interest

• Stuff happening annually

Tags

CCSS.HSA.SSE.B.4

Compound Interest Formula

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Balance of an Annuity

(Deposit with $0 principal)

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Total Interest for an Annuity

Balance of a reducing annuity

(eg mortgage)

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Balance of an increasing annuity

(eg investment)

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Recursion formula for a Reducing Balance Loan

Tags

CCSS.HSF.BF.A.2

My favourite subject is:

• English

• Math

• Procrastinating

• Drama

Tags

CCSS.RI.11-12.10

CCSS.RI.7.10

CCSS.RI.8.10

CCSS.RI.9-10.10

CCSS.RL. 11-12.9