HO07 HW1_Solns - Methods of Calculating Interest 2.1 ൌ...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ME 353 HO07 9/19/2011 1 of 2 ME 353 Homework 1 Solution 25 August 2011 Announcements This assignment is due by 5 PM on 02 September 2011. Readings Chapters 1 of your textbook Section 2.1 of your textbook “Gas Savings” handout on Bb. Homework Please work the following exercises: 1. Explain your intentions for this course. What do you hope to learn? What is your objective? How do you plan to achieve your objectives? 2. Describe an important financial decision that you or a family member faced recently. What made the decision challenging? What type of analysis did you do? Do you think you made a good decision? 3. Read the “Gas Savings” advertisement? What do you think? What questions would you ask to decide whether or not to use it? How might you go about figuring out if this is a good investment?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Methods of Calculating Interest 2.1 ܫ ൌ ݅ܲܰ ൌ ሺ0.09ሻሺ$3,000ሻሺ5ሻ ൌ $1,350 2.3 Simple Interest ܫ ൌ ݅ܲܰ ܫ ൌ ሺ0.07ሻሺ$10,000ሻሺ20ሻ ܫ ൌ $14,000 Compound Interest ܫ ൌ ݌ሾሺ1 ൅ ݅ሻ ே െ 1ሿ ൌ $10,000ሾሺ1.07ሻ ଶ଴ ሿ ൌ $28,696.84 ME 353 HO07 9/19/2011 2 of 2 2.5 Interest Payment in Period 1 : ܫ ଵ ൌ $5,000 כ 0.09 ൌ $450.00 Principal Payment in Period 1 : ܲ ଵ ൌ $1,285.46 െ $450 ൌ $835.46 Remaining Balance in Period 1: ܴܤ ൌ $5000.00 െ $835.46 ൌ $4,164.54 End of period Principal Payment Interest Payment Remaining Balance 0 $0.00 $0.00 $5,000.00 1 $835.46 $450.00 $4,164.54 2 $910.65 $374.81 $3,253.89 3 $992.61 $292.85 $2,261.28 4 $1,081.94 $203.85 $1,179.33 5 $1,179.32 $106.14 $0.00...
View Full Document

{[ snackBarMessage ]}

Page1 / 2

HO07 HW1_Solns - Methods of Calculating Interest 2.1 ൌ...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online