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Unformatted text preview: than 5 years) method for calculating interest on payments that give the loaner an advantage in that if the borrower pays back early he has to pay back more. 4. How do you use the Amortization Table to amortize a loan? Find the number of periods and the rate, then find these numbers in their respective row and column and find the rate where they meet. To find the payment multiply the loan amount by the number you just found. $5000 loan at 10% for 2 years: Payment = 5000*.1113 = 556.5 5. Application Problem: Give one example where you may use a concept found in this chapter. When looking for the rate on a CD you might compare APR to find the best CD for your money....
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This note was uploaded on 12/30/2009 for the course MATH 1220 taught by Professor Roarty during the Spring '09 term at Metropolitan Community College- Omaha.
- Spring '09