1. Calculate using the formula MCR 3UI Unit 7 – Day 2

2. MondayTuesdayWednesdayThursdayFriday Dec 17 Compound Interest And Present Value Dec 18 Annuities Future Value Dec 19 Annuities Present Value Dec 20 In-Class Assignment Dec 21 Finish outstanding work. (HW for week due) Christmas Break Jan 7 Exponential Functions and Apps Jan 8Jan 9Jan 10Jan 11 Jan 14Jan 15Jan 16Jan 17Jan 18 Unit 7 Test (Material from after Christmas only) Jan 21 Exam Review Jan 22 Exam Review Jan 23 Exam Review Jan 24 Period 1 Exam Jan 25 Period 2 Exam Jan 28 Period 3 Exam Jan 29 MATH EXAM !! Jan 30Jan 31Feb 1

3. Unit 7 – Day 2: Future Value of an AnnuiTy Explain what an annuity is Determine the present or future value of an annuity.

4. Explain what an annuity is Boris invested $100 at the end of each year for 3 years. If interest was 4% / a compounded annually, determine how much money he would have after 3 years. start 3 years $100 ??? 1 year P = 100 i = 0.04 n = 2 2 years $100 ??? P = 100 i = 0.04 n = 1 $100 104 108.16 Total: 312.16 OR An annuity is an investment / loan with a repeated (identical) payments.

5. Example 4: Future value of an annuity Explain what an annuity is Determine the present or future value of an annuity a) At the end of each month you invested $100 into an account paying 6%/a compounded monthly. How much would you have saved in 5 years? b) Repeat part a if you invested $25 each week and interest was 5.2%/a compounded weekly for 5 years. c) How much interest was earned in each situation? d) After the final payment you left the money in the account for 2 more years. How much money would you have in each situation?

6. Example 5: Finding the regular payment or the number of payments Explain what an annuity is Determine the present or future value of an annuity a) Boris wants to deposit the same amount of money at the end of each quarter for 10 years into an account paying 3.6% / a compounded quarterly. How must does he need to deposit each time to accumulate $1,000,000? b)Crackers wants to make equal payments at the end of each year for 10 years into an account paying 3.6% / a compounded annually. How much would he need to invest today to accumulate 1,000,000? c)How many monthly payments of $100 would you need to make into an account paying 3.6% /a compounded monthly to accumulate 1,000,000?

7. Today’s HW: pg 152, # 8, 10 – 12, 17, 19 *Skip all parts that ask for series (There are several questions that ask for them) * I would recommend timelines for all questions, even if they are not asked for. Hints * Question 8: Example 4ab * Question 10: Example 5ab * Question 11: Example 4d * Question 12: Example 4d * Question 17: Example 5c * Question 19: Example 5ab (19e is based on Example 4c but doesn’t ask for interest)