Craig sent this problem: “You are given: P = $4,000, r = 9%, n = 60 mos., and R = $83.03 On an amortized loan, and then you refinance after 12 months.

Slides:

Advertisements

Similar presentations

Example 5 Home Mortgage Chapter 5.6 A couple that wants to purchase a home with a price of $230,000 has $50,000 for a down payment. If they can get a 25-year.

Advertisements

Building an Amortization Schedule How the banks do it and what we need to know…

ADVANCED PROGRAMME MATHEMATICS SECTION: FINANCE. LOANS EXAMPLE 1 A home loan of R is amortized over a period of 20 10,5% p.a. compounded.

Amortization. Formulas Simple Interest Amortized Loan Formula.

Graphing Sine and Cosine. Periodic function: A function which has a graph that repeats itself identically over and over as it is followed from.

Mr. Weiss Section 3 – Module 21

Econ 134A Test 1 Spring 2012 Solution sketches. Lyric Music National Bank Lyric loans $360,000 from Music National Bank today. The stated annual interest.

Debt 1. Interest rate: Annual Percentage Rate APR 2.

Credit Card Payments What is the balance? What is the annual interest rate? What is your monthly payment?

Fixed Rate and Fixed Duration Loans You need to know three things about a fixed rate, fixed duration loan: How much do you need to borrow? What is the.

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

Your Money and Your Math

Example 4 Loan Repayment Chapter 4.3 A business property is purchased with a promise to pay off a $60,000 loan plus the $16,500 interest on this loan by.

Three Types of Percent Problems Day = Examples: Find 40% of 60 20% of = 18 Write a mathematical sentence Click.

MATH 102 Contemporary Math S. Rook

8-6 Simple Interest Indicator  N8 Develop and analyze algorithms for computing with percents and demonstrate fluency in use. Pages

Section 1.1, Slide 1 Copyright © 2014, 2010, 2007 Pearson Education, Inc. Section 8.5, Slide 1 Consumer Mathematics The Mathematics of Everyday Life 8.

Loans Paying back a borrowed amount (A n )in n regular equal payments(R), with interest rate i per time period is a form of present value annuity. Rewrite.

Deriving the Present and Future Values Formulas Caroline Gallant MAT 123.

Loop Exercise 1 Suppose that you want to take out a loan for $10,000, with 18% APR, and you're willing to make payments of $1,200/month. How long will.

Find the monthly payment R necessary to pay off a loan of $90,000 at 5% compounded monthly for 30 years. (Round final answer up to the nearest cent.) MATH.

Loans - Mortgages. Amortization Table Just like Credit cards Month Beginning BalancePaymentInterestPrincipalEnd Balance.

Interest on Loans Section 6.8. Objectives Calculate simple interest Calculate compound interest Solve applications related to credit card payments.

Present Value of an Annuity with Annual Payments 1 Dr. Craig Ruff Department of Finance J. Mack Robinson College of Business Georgia State University ©

Learning Objectives for Simple Interest

HAWKES LEARNING SYSTEMS Students Matter. Success Counts. Copyright © 2013 by Hawkes Learning Systems/Quant Systems, Inc. All rights reserved. Section 4.8.

Q1 The following expression matches the interest factor of continuous compounding and m compounding. Plug r=0.2, m=4 to get x=0.205.

Interest Rates Chapter Outline Interest Rate Quotes and Adjustments – The Effective Annual Rate (EAR) and the Annual Percentage Rate (APR) The.

Loans Step One Look at the loan application from SJB Federal Credit Union –LINKLINK FICO Fair Isaac and Company ScoreFair Isaac and Company –300 to 900.

Lesson 4 Algebra II Advanced Functions. Slope a)What is the slope of a horizontal line? 0 b)What is the slope of a vertical line? undefined c)What are.

A right triangle is shown below. The triangle is dilated by a scale factor of 3.5 to create a new triangle. What is the area of the new triangle? A. 24.

Snowgraphing 7 th Grade Science. Are you ready to begin your first event?

Three Types of Percent Problems Day = Examples: Find 40% of 60 20% of = 18 Write a mathematical sentence Click.

Mortgages. Almost everyone who buys a home requires a loan from the bank. A mortgage is repaid over a set length of time, known as the amortization period.

/ 10 Place Value ANALYZE the following number: 3, a.What number is in the hundreds place?? b.What number is in the hundredths place?

Solve this Problem. Make a plan & solve this problem Your monthly income is $1,000 Expenses + paying yourself 15% = $800 Car will need tires in 6 months.

3.1 Simple Interest Definition: I = Prt Definition: I = Prt I = interest earned I = interest earned P = principal ( amount invested) P = principal ( amount.

Percent and Problem Solving: Interest Section 7.6.

Borrowing to Buy a Home 6.1. Down Payments and Closing Costs Terms to know: – Down Payment – Mortgage Loan – Principal – Closing Costs – Points.

Continuous and Discrete Probability Distributions Sections 7.1 and 8.1.

Payments and Total Interest The two formulas used so far are only useful if we know what the regular payment is going to be. If we know what a future amount.

Unit 7: Credit Credit calculations review

I can calculate the amount financed on an installment loan. I can find the monthly payment.

Number of Payments Interest Rate Amount Borrowed Monthly Payment Total Cost of Interest Creditor A7214%$7,500.00$154.54$3, Creditor B6014%$7,500.00$174.51$2,

Pg. 301 Homework Pg. 309#25 – 39 odd Pg. 312#53 – 54 Pg. 311#1 – 12 all #1x = 10,000#2x = 1/e#3x = 5.25 #4x = ½ #5x = 97#6x = 1001 #7x = 16#8x = 531,434#9x.

Copyright © 2011 Pearson Education, Inc. Managing Your Money.

Copyright © Cengage Learning. All rights reserved. 5 MATHEMATICS OF FINANCE Read and take notes on p. 296.

What is a Mortgage? - Part 2 Review 1. What is the term of a mortgage? The length of time that the interest rate is fixed. 2. What is the difference between.

The explanation for a Spreadsheet week 17 How do you set up a spreadsheet!

Mortgage Refinancing You hold a 15 year mortgage with 6% APR (compounded monthly) and monthly payment of $1240. Your mortgage is 60 months old (you have.

 Homework Answers Standardized Test Prep & Mixed Review P. 192 #s all 58)62) 59)63) 60) 64) 61) 65)

 Objectives: To write sets and identify subsets To find the complement of a set Section 3 – 5 Working With Sets.

Aim: Money Matters: Amortization Course: Math Literacy Aim: How does money matter? Annuities in reverse: Amortization! Do Now:

Erin borrowed $900 from her parents. She will pay them back $150 each month. Write an equation for the amount A she still owes them to the number of payments.

Ms. Young Slide 4-1 Unit 4C Loan Payments, Credit Cards, and Mortgages.

Aims: To know what the complex number i is. To be able to simplify complex numbers. To be able to add, subtract and multiply complex numbers. To know what.

Understanding Car Payments. Mark wants a go-cart. Mark wants a go-cart. A go-cart costs $500. A go-cart costs $500. Mark only has $100. This is his Down.

a.What is the resistance from X to Y? b.What is the resistance from X to Z? c.What is the total current? d.What is the current from X to Y? e.What.

1.a. Identify the vertex. b. Does the function have a minimum or maximum? What is it? c. Find the domain and range. d. What are the solutions? e. What.

Q1: lets assume if you invest $1000 today, you will receive $3000 in exactly 8 years. The compound interest rate implicit in this situation. What is the.

FIN 420 Week 4 DQ 2 Visit a site such as to determine current rates for both a 60- month and a 36-month loan on a new car where the buyer.

Creating an amortization table using AMORT program Start program

Percent and Problem Solving : Interest

- PARTING KNOWLEDGE ABOUT FRACTIONAL NUMBERS

effects of changing conditions

SECTION 10-2 Monthly Payment and Total Interest pp

WARMUP George is getting a loan to buy a car. He will borrow $17,000 for 4 years at 7.2%. What are his monthly payments? How much in finance charges.

Presentation transcript:

Craig sent this problem: “You are given: P = $4,000, r = 9%, n = 60 mos., and R = $83.03 On an amortized loan, and then you refinance after 12 months. What is the new monthly payment?” (a)What have you already paid? (b)What did you owe, with interest? (c)What is now owed? (d)What is the new payment? (Assuming 60 months at 9% again.)

Craig sent this problem: You are given: P = $4,000, r = 9%, n = 60 mos., and R = $83.03 On an amortized loan, and then you refinance after 12 months. What is the new monthly payment? Solve for R: