wkstlesson40

wkstlesson40 - MA 15200 Supplemental Worksheet, Lesson 40...

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MA 15200 Supplemental Worksheet, Lesson 40 For the following formulas : S is future value, P is present value, r is the interest rate, k is the number of compounding periods in a year (or number of payments per year), t is time in years, A is the amount of money, and R is the amount of payment; with the formula for the periodic interest rate r i k = . Any of the previous formulas may also be used on this worksheet (the formulas for annuities or investments). 12. Amortization Formula (Installment Payments): 1 (1 ) kt i R A i - = - + (The amount of an installment payment when the amount borrowed is A .) 1) The Jackson’s are buying a $22,400 car and financing the full amount over 5 years. If they can secure a loan at 6.3% annual interest on unpaid balance, what will be the amount of the monthly payment? Round to the nearest cent. 2) Jean has offers from two different lending institutions to finance her mortgage of $120,000. One institution (A) will offer her a 20 year mortgage at 6% annual
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This note was uploaded on 04/23/2011 for the course MA 152 taught by Professor Owendavis during the Spring '08 term at Purdue.

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wkstlesson40 - MA 15200 Supplemental Worksheet, Lesson 40...

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