2 Annuities (MAT 142)FormulasOrdinary Annuity Formula
3 Annuities (MAT 142)John Smith recently set up a tax-deferred annuity to save for his retirement. He arranged to have $50 taken out of each of his biweekly checks; it will earn annual interest. He just had his thirtieth birthday, and his ordinary annuity comes to term when he is sixty-five. Find the following:the future value of the accountJohn’s total contribution to the account.the total interest
4 Formulas Simple Interest Amortized Loan Formula Amortized Loans (MAT 142)FormulasSimple Interest Amortized Loan Formula
5 Formulas Unpaid Balance Formula Amortized Loans (MAT 142)FormulasUnpaid Balance FormulaT is the number of years from the beginning of the loan to the present
6 Amortized Loans (MAT 142)Shirley bought a house for $187,600. She put 20% down and obtained a simple interest amortized loan for the balance at for 30 years.Find her monthly payment.Find the total interest.Prepare an amortization schedule for the first two months of the loan.
7 Amortized Loans (MAT 142)Shirley bought a house for $187,600. She put 20% down and obtained a simple interest amortized loan for the balance at for 30 years.20 years have passed and Shirley wants to pay off the balance on her house. If there is no pre-payment penalty, what will it cost for Shirley to pay off the unpaid balance of her home loan?