Advanced Algebra II Notes 1.5 Loans and Investments Investigation: (Use Sequential Mode, Stat Plot to simplify. See below)

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Advanced Algebra II Notes 1.5 Loans and Investments Investigation: (Use Sequential Mode, Stat Plot to simplify. See below)

You plan to borrow $22,000 to purchase a car. The investment must be paid off in 5 years. ( ________ months) The interest rate is 7.9%, compounded monthly. What is the monthly interest rate? _________ What is the interest on $22,000 for the first month? ___________

If you make a payment of $300 at the end of the first month, what is the remaining balance? _________ Balances at the end of the first 6 months are: ____________ ____________ ____________ ____________ How many months will it take to pay off the loan? __________

Experiment with other values for the monthly payment. What monthly payment allows you to pay off the loan in exactly 60 month? _____________ What is the amount of the last payment? ____________ What is the total you pay for the car? ________________

Calculator Notes: Use 1.4 notes To find a specific term of the sequence, on the home screen, press: 2 nd 7 (which is u), the parentheses, the term number, parentheses, and enter. The calculator will calculate the term value.

Example Gwen’s employer offers an investment plan that invests a portion of each paycheck before taxes are deducted. Gwen gets paid every week. The plan has a fixed annual interest rate of 4.75%, compounded weekly, and she decides to contribute $10 each week. What will Gwen’s balance be in 5 years? Principle____________ Deposit or payment amount____________ Annual interest rate____________ Frequency of compounding____________ nMin = ____________ u(n) = _____________________________ u(nMin) = ____________

Assignment: page 64: