Annuities, methods of savings, investment

Slides:

Advertisements

Similar presentations

Compound Interest Present and Future Values Wayne Foss, MBA, MAI, CRE, Fullerton, CA USA

Advertisements

Annuity Dr. Vijay Kumar

Section 1.1, Slide 1 Copyright © 2014, 2010, 2007 Pearson Education, Inc. Section 8.4, Slide 1 Consumer Mathematics The Mathematics of Everyday Life 8.

Finite Mathematics: An Applied Approach by Michael Sullivan Copyright 2011 by John Wiley & Sons. All rights reserved. 6.4 Present Value of an Annuity;

Press Ctrl-A ©G Dear2008 – Not to be sold/Free to use 1 Present Value of an Annuity Stage 6 - Year 12 General Mathematic (HSC)

Chapter 2 Applying Time Value Concepts Copyright © 2012 Pearson Canada Inc. Edited by Laura Lamb, Department of Economics, TRU 1.

Section 1.1, Slide 1 Copyright © 2014, 2010, 2007 Pearson Education, Inc. Section 8.4, Slide 1 Consumer Mathematics The Mathematics of Everyday Life 8.

© 2013 Pearson Education, Inc. All rights reserved.3-1 Chapter 3 Understanding and Appreciating the Time Value of Money.

© 2010 Pearson Prentice Hall. All rights reserved. CHAPTER 8 Consumer Mathematics and Financial Management.

Interest Formulas for Single Cash Flows

Minds On: Future Value Tom and Beth are twins. They save for retirement as follows: – Starting at age 25, Tom deposits $1000 at the end of each year for.

Why is the time value of money an important concept in financial planning?

Section 4C Savings Plans and Investments Pages

Regular Deposits And Finding Time. An n u i t y A series of payments or investments made at regular intervals. A simple annuity is an annuity in which.

SIMPLE INTEREST Interest is the amount paid for the use of money.

Annuity Payments LG: I can calculate the payment of an annuity in present value and future value situations.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 5.0 Future Values Suppose you invest $1000 for one year at 5%

MTH108 Business Math I Lecture 25.

Pre-AP Pre- Calculus Chapter 3, Section 6 Mathematics of Finance

Chapter 3 Mathematics of Finance

Chapter IV Tutorial Time Value of Money. Important Abbreviations N (number of periods) I/Y (interest per year) PV (present value) PMT (payment) FV (future.

1 Chapter 9, Part 2 Time Value of Money 1. Present Value of a Single Amount 2. Present Value of an Annuity 3. Future Value of a Single Amount 4. Future.

Algebra Geometric Sequences Objectives of this Section Determine if a Sequence Is Geometric Find a Formula for a Geometric Sequence Find the Sum.

 S = future worth  P = principal  r = annual rate  t = time in years  m = number of compoundings per year Compound Interest and Sequences if compounded.

Future Value of an Ordinary Simple Annuity Annuity - Series of equal payments or deposits earning compound interest and made at regular intervals over.

Present Worth of Annuities make equal payments The present value of an annuity that pays out n regular payments of $R at the end of each time period from.

Recursion. The Fibonacci sequence presented in 1201 by Leonardo Fibonacci is one of the most famous. It looks like this 1, 1, 2, 3, 5, 8, 13, 21, 34,

Geometric Sequences.

PRINCIPLES OF FINANCIAL ACCOUNTING APPENDIX C. Simple vs Compound interest BEC1: A.5,000 x 8% x 12 = 4,800 5, ,800 = 9,800  B.Table 1, 8%, 12 years.

1 © 2010 Pearson Education, Inc. All rights reserved © 2010 Pearson Education, Inc. All rights reserved Chapter 10 Further Topics in Algebra.

8 – 5 Properties of Logarithms Day 2

Time Value of Money. Assume a couple puts $1,000 in the bank today. Their account earns 8% interest compounded annually. Assuming no other deposits were.

Introduction to Accounting I Professor Marc Smith CHAPTER 1 MODULE 1 Time Value of Money Module 3.

Today in Precalculus Go over homework Need a calculator Notes: Annuities (Future Value) Homework.

Chapter 11 Sequences, Induction, and Probability Copyright © 2014, 2010, 2007 Pearson Education, Inc Geometric Sequences and Series.

Ch.7 The Time Value of Money Goals: Concept of the time value of money Present value and Future value Cash flows and time value calculation Compounding.

Aim: Money Matters-Annuities & Sinking Funds Course: Math Literacy Aim: How does money matter? Annuities – a savings plan. Do Now: You are 21 years old.

10/23 More interest Compound interest formula A =.

1 © 2010 Pearson Education, Inc. All rights reserved © 2010 Pearson Education, Inc. All rights reserved Chapter 11 Further Topics in Algebra.

Aim: Money Matters – Future Value of Annuities Course: Math Literacy Aim: How does money matter? Annuities – a savings plan for the future. Do Now: At.

OPPORTUNITY COSTS AND STRATEGIES WHAT ARE PERSONAL AND FIANANCIAL COSTS? PG NAME, TEACHER AND DATE.

TVM Review. What would your future value be if you invested $8,000 at 3% interest compounded quarterly for 15 years?

Understanding and Appreciating the Time Value of Money

Section 8.3 Compound Interest Math in Our World. Learning Objectives  Compute compound interest.  Compute the effective interest rate of an investment.

Lesson 2 – Annuities Learning Goal I can solve for the future value of an annuity.

Introduction to Accounting I Professor Marc Smith CHAPTER 1 MODULE 1 Time Value of Money Module 4.

Calculating interest You can calculate the time value of your savings by figuring out how much interest you will earn. Principal – the original amount.

QMT 3301 BUSINESS MATHEMATICS

Section Ordinary Annuities, Sinking Funds, and Retirement Investments

CHAPTER 8 Personal Finance.

Financial Applications -Annuities (Accumulated Amount)

Math in Our World Section 8.3 D1 Compound Interest.

Chapter 3 Mathematics of Finance

Ordinary Annuities, Sinking Funds, and Retirement Investments

Example 4 Annuities Show that if regular payments of $1000 are made at the end of each year for 5 years into an account that pays interest at 10% per year.

Future Value of an Investment

Interest Principal (p) - Amount borrowed or invested.

Lesson 6 Regular Annuities-Future Value

Lesson 2 The amount of an Annuity

Annuities Student Handout

Ordinary Annuity S.Y.Tan.

Copyright © 2014, 2010, 2007 Pearson Education, Inc.

Financial Applications -Annuities (Present Value)

7. Annuities and loan repayments

Chapter 1.2 Opportunity Costs Financial Strategies

Geometric Sequences.

HOW TO MAKE MONEY WITHOUT DOING ANY WORK

Copyright © 2014, 2010, 2007 Pearson Education, Inc.

Example 7 Investment The future value of $3000 invested for 3 years at rate r, compounded annually, is given by What interest rate will give a future value.

Presentation transcript:

Annuities, methods of savings, investment 8.1 (part 1) notes Annuities, methods of savings, investment

Warm-up

Annuities Annuity: a sequence of equal payments made at equal time periods. An IRA (Individual Retirement Account)is an example of annuity. Value of an annuity: is the sum of all deposits plus all interest paid. USE THE COMPOUND INTEREST FORMULA:

Compounded Annually

With a partner Here’s the formula for achieving a financial goal. n is the number of times the annuity is compounded.

one more…