1 / 8

Effective Rates, Annuities, and Logarithmic Functions in Financial Mathematics

This homework guide covers comprehensive exercises on effective rates and annuities, specifically focusing on mortgage calculations and investment growth in an IRA. It includes examples of mortgage payments for different scenarios, the time needed for loans to be paid off under varying payment rates, and investment returns over time. Additionally, it explores logarithmic functions, including their properties, solving for variables, and applying them to real-world population growth problems. This resource is ideal for mastering financial mathematics concepts.

xiang
Télécharger la présentation

Effective Rates, Annuities, and Logarithmic Functions in Financial Mathematics

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Worksheet/Pg. 269/277 Homework • Pg. 282 #7, 15, 17Pg. 292 #1 – 20 all • #50 81,920; 2.31x1019 #51 P(t) = 20(2)t • #52 8.97 months #53 food, health, etc • #57 38.05 days #58 117.48 days • #27 $669.11 #28 $673.43 • #29 $674.43 #30 $674.91 • #31 $674.93 #41 $4,161.39 • #7 $191,278,744,600.00

  2. 5.3 Effective Rates and Annuities • An $86,000 mortgage for 30 years at 12% APR requires monthly payments of $884.61. Suppose you decide to make monthly payments of $1050.00. When would the mortgage loan be completely paid? • Suppose you make payments of $884.61 for that same $86,000 mortgage for 10 years and then make payments of $1050.00 until the loan is paid. In how many years total will the mortgage be completely paid?

  3. 5.3 Effective Rates and Annuities • Consider a mortgage loan of $80,000 for a 30 year term with interest at 10% APR and monthly payments. • Determine the monthly payments • Suppose one half of the monthly payment was made every 2 weeks. When would the mortgage loan be completely paid.

  4. 5.3 Effective Rates and Annuities • Sally contributes $80 monthly into an IRA account that earns 6.25% interest. If Sally starts putting money away when she graduates from college (22), how much money will she have when she retires (67)? • You have saved $2,500 to put down on a car and you can afford to pay $220 for monthly payments. If you are approved for a 5 year loan at 7.5%, how much car can you afford?

  5. 5.3 Effective Rates and Annuities • The half-life of a certain radioactive substance is 21 days and there are 4.62 grams present initially. • Find an algebraic expression for the amount A of substance remaining as a function of time. • Find a complete graph of the function. • When will there be less than 1 gram of the substance remaining?

  6. 5.4 Logarithmic Functions and Their Properties Properties

  7. 5.4 Logarithmic Functions and Their Properties Solve for x: The Nature of Logarithms Why do we deal with positive x values when dealing with logs? What information do we always know about a log?

  8. 5.4 Logarithmic Functions and Their Properties Rewrite the following Logarithms Word Problem!!  Use an algebraic method to find how long it would take a town with a population of 50,250, increasing continuously at the rate of 3.25% yearly, to reach a population of 301,500.

More Related