The Mathematics of Money

182 Chapter 4 Annuities present value or vice versa. While we might have a vague and conceptual idea of what is going on as the ...

Copyright © 2008, The McGraw-Hill Companies, Inc. You can (and should) verify the third and fourth rows of the table by repeatin ...

184 Chapter 4 Annuities Example 4.5.2 Suppose Pat and Tracy took out a 15-year mortgage instead, also for $158,000 and at a 7.2% ...

Copyright © 2008, The McGraw-Hill Companies, Inc. We will use the term amortized loan to refer to any loan whose payments are ca ...

186 Chapter 4 Annuities Example 4.5.3 Assuming that they make all their payments as scheduled, how much will Pat and Tracy owe o ...

Copyright © 2008, The McGraw-Hill Companies, Inc. loan, using the new loan to borrow the amount needed to pay the old one off. I ...

188 Chapter 4 Annuities With her old loans, her remaining payments would total: Loan Payment Remaining Payments Total Remaining ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Calculate the quarterly payment for a loan of $28,300 at 7.25% for 10 years. ...

190 Chapter 4 Annuities Phyllis took out a 6-year loan to buy a new car. She borrowed $18,000 and the interest rate was 7.56%. ...

Copyright © 2008, The McGraw-Hill Companies, Inc. b. Determine how much he owes on this loan now. c. Construct an amortization t ...

Krystof took out a personal loan for $3,569.74, with monthly payments for 5 years. The interest rate was 11.39%. a. Construct ...

Copyright © 2008, The McGraw-Hill Companies, Inc. For the fi rst 2 years, this account was an annuity, and so we can fi nd its f ...

194 Chapter 4 Annuities Wayne’s future account value is less of a challenge. Once his payments start, they continue on to the en ...

As the examples of this section hopefully demonstrate, a change in the payment stream need not stop us from calculating an accou ...

C. Grab Bag Anja and Ted both have just set up investment accounts. Suppose that Anja deposits $1,000 each year for 10 years an ...

Copyright © 2008, The McGraw-Hill Companies, Inc. a single account, or split the money up. In the end, you still have every sing ...

198 Chapter 4 Annuities Example 4.7.3 For the last 5 years, the management of Watermill Corp. has put $25,000 from its profi ts ...

The second question, how much interest I earned, can be answered by subtracting the total payments from the future value. I made ...

200 Chapter 4 Annuities B. “Annuities” with an Extra Payment Suppose Kerry deposits $2,000 each year into an investment account ...

I have $1,575.19 in my savings account right now. It earns 3.6% interest. If I deposit $200 into this account each month, how m ...