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

2. Annual Percentage Rate (APR) Often accounts are given an APR. This assumes the interest is compounded only once a year. To determine the compounding interest rate divide the APR by the number of times in a year the interest is compounded.

3. Annuities A sequence of periodic payments instead of a lump sum. Ordinary annuities are when the deposits are made at the end of each period at the same time the interest is posted in the account. FV: future value R: amount of each equal payment i: interest rate (if given APR, divide by number of payments in a year) n: total number of payments

4. Example 1 =$64,952.14 Given APR and interest is compounded quarterly so divide i by 4 Betsy invested $250 × 4 × 25= $25,000 So she made $64,952.14 - $25,000 = $39,952.14 in interest which is a return of 160% on her investment.

5. Example 2 =$15,993.37 Given APR and interest is compounded twice a year so divide i by 2

6. Example 3 15,000=73.919R R=$202.92 Josh needs to deposit $202.92 each month Given APR and interest is compounded monthly so divide i by 12

7. Homework Pg 341: 13-16, 47-50 Chapter 3 test: Wednesday, January 20