Consumer Loans and Annuities. Jenna buys a bedroom set at Fowler’s Furniture for $3,700. She puts $500 down and finances the rest through the store at.

Slides:

Advertisements

Similar presentations

Financial Algebra © Cengage/South-Western Slide CREDIT CARD STATEMENT To identify and use the various entries in a credit card statement. OBJECTIVES.

Advertisements

Your Money and and Your Math Chapter Credit Cards and Consumer Credit

MATH 102 Contemporary Math S. Rook

Section 1.1, Slide 1 Copyright © 2014, 2010, 2007 Pearson Education, Inc. Section 8.3, Slide 1 Consumer Mathematics The Mathematics of Everyday Life 8.

Warm - Up 1. What is 15% of 60? is 24% percent of what number? is what percent of 320?

Do now – grab a calculator

CHAPTER 9 SEC 3 Consumer Loans. What is a consumer loan? Def.  a loan that establishes consumer credit that is granted for personal use; usually unsecured.

Annuities and Amortization

Simple Interest Section 5.1. Introduction When you deposit money into a savings at a bank you expect the bank to pay you for the privilege of saving your.

Simple Interest 7th Grade Math.

Discounted Cash Flow Valuation

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.

Homework, Page 341 Find the amount A accumulated after investing a principal P for t years at an interest rate of r compounded annually. 1.

Chapter 5 Section 5.3 Annuities. The compound interest investment in which all of the money that is to be invested (i.e. the principal ( P )) is put in.

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.

Warm up You took out a loan for $1460 and the bank gave you a 5 year add on loan at an interest rate of 10.4%. How much interest will you pay and how much.

Chapter 5 Section 5.4 Amortized Loans. An amortized loan is a type of investment (for the loaner) in which the amount of the loan, plus the interest is.

Lecture 24 Annuities Ana Nora Evans 403 Kerchof Math 1140 Financial Mathematics.

Notes 31 Simple Interest 6-6.

Good Debt vs. Bad Debt Middle School Financial Literacy #5.

Compound Interest. Objectives Calculate a periodic rate. Determine the number of compounding periods in a given amount of time. Calculate the future value.

Simple Interest Compound Interest and Consumer Loans.

Simple Interest (MAT 142) Simple Interest.

Annuities (MAT 142) Annuities.

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.

8.1 Single Payment Loan Single-Payment Loan Promissory Note

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.

  A1.1.E Solve problems that can be represented by exponential functions and equations  A1.2.D Determine whether approximations or exact values of.

Mathematics of Finance

Savings Tools Take Charge of Your Finances Family Economics & Financial Education.

3.6 – Mathematics of Finance

Choi.  An annuity is a sequence of equal payments made at equally spaced intervals of time.  The period of an annuity is the time interval between two.

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

Mathematics of Finance. We can use our knowledge of exponential functions and logarithms to see how interest works. When customers put money into a savings.

Good Debt vs. Bad Debt 7 th Grade Income vs. Expenses #3.

Credit Cards. What are the benefits? No need to carry large sums of cash Helps credit rating Have access to a written record of all purchases Rewards.

MAT 142 Lecture Video Series. Simple Interest Objectives Calculate the simple interest on a loan. Calculate the future value of a simple interest loan.

Warm Up 2/5 or 2/6 Simplify:. Answers Compound Interest Compounding interest is where money earned is added to the principal and then recalculated to.

MBF3C Lesson #6: Saving Alternatives

Mathematics of Finance. We can use our knowledge of exponential functions and logarithms to see how interest works. When customers put money into a savings.

Exam 1 Review. Things You Should Know l Time Value of Money problems l All the readings including WSJ ‘little’ book n Stocks: trading, calculating returns.

$$ Entrepreneurial Finance, 5th Edition Adelman and Marks PRENTICE HALL ©2010 by Pearson Education, Inc. Upper Saddle River, NJ Chapter 9 Time.

Copyright © 2015, 2011, and 2007 Pearson Education, Inc. 1 Chapter 11 Annuities, Stocks, and Bonds Section 1 Annuities and Retirement Accounts.

Chapter 3, Section 6 Annuities. I can… Calculate the future value of an ordinary annuity. Calculate the present value of an ordinary annuity.

Finance Workshop Friday, March 26, :15pm – 4:15pm PS – A103 Anthony D’Alesandro.

Consumer Loans © 2010 Pearson Education, Inc. All rights reserved.Section 9.3, Slide Determine payments for an add- on loan. Compute finance charges.

Economics.  Interest can mean two things to the consumer…  If you put money in a bank, you will get paid interest on your deposit over time.  If you.

Lesson 7.6 Concept: How to find simple interest Guidelines: When you compute simple interest for a time that is less than 1year, write the time as a fraction.

3.3 Personal Finance. Compound Interest Steady Withdrawal/Deposits x x.

8 – 5 Properties of Logarithms Day 2

11.2 Exponential Functions. General Form Let a be a constant and let x be a variable. Then the general form of an exponential function is:

Simple and Compound Interest Simple Interest I = Prt Compound Interest A = P(1 + r)

SECTION 4-4 pp Bank Statements.

Financial Algebra © Cengage/South-Western Slide 1 CONSUMER CREDIT 4-1Introduction to Consumer Credit 4-2Loans 4-3Loan Calculations and Regression 4-4Credit.

Chapter 4, Section 2 Credit Card Finance Charges.

Slide Copyright © 2009 Pearson Education, Inc. AND Active Learning Lecture Slides For use with Classroom Response Systems Chapter 11 Consumer Mathematics.

Section 13.2 Loans. Example 8 Find the future value of each account at the end of 100 years if the initial balance is $1000 and the account earns: a)

MAT 142 Lecture Video Series. Annuities Objectives Calculate the future value of an ordinary annuity. Calculate the amount of interest earned in an ordinary.

6.00 Sources of Credit Unit C Basic Business Law Objective 6.02.

Annuities; Loan Repayment  Find the 5-year future value of an ordinary annuity with a contribution of $500 per quarter into an account that pays 8%

Time Value of Money Annuity.

Mathematics of Finance

Chapter 11 Consumer Mathematics Active Learning Lecture Slides

Section 13-2 Consumer Credit.

3.6 – Mathematics of Finance

SECTION 7-3 Finance Charge: Average-Daily-Balance pp

Simple Interest (MAT 142) Simple Interest.

SECTION 7-4 Finance Charge: Average-Daily-Balance

SECTION 7-4 Finance Charge: Average-Daily-Balance

SECTION 7-3 Finance Charge: Average-Daily-Balance pp

Presentation transcript:

Consumer Loans and Annuities

Jenna buys a bedroom set at Fowler’s Furniture for $3,700. She puts $500 down and finances the rest through the store at 9.8% add-on interest. If she agrees to make 36 monthly payments, find the size of each payment.

The activity on Sophie Jones’s Sears account for one billing period is shown below. Find the average daily balance and the finance charge if the billing period is March 1 through March 31. The previous balance was $157.14, and the annual interest rate is 21%. March 5payment$25.00 March 17tools$36.12

Formulas Ordinary Annuity Formula

John Smith recently set up a tax-deferred annuity to save for his retirement. He arranged to have $50 taken out of each of his biweekly checks; it will earn annual interest. He just had his thirtieth birthday, and his ordinary annuity comes to term when he is sixty-five. Find the following: the future value of the account John’s total contribution to the account. the total interest