4-3 LOAN CALCULATIONS AND REGRESSION

Slides:

Advertisements

Similar presentations

Financial Algebra © Cengage/South-Western Slide CREDIT CARD STATEMENT To identify and use the various entries in a credit card statement. OBJECTIVES.

Advertisements

OBJECTIVES 4-2 LOANS Read monthly payments from a table.

Financial Algebra © Cengage/South-Western Slide LINEAR AUTOMOBILE DEPRECIATION Write, interpret, and graph a straight line depreciation equation.

Simple and Compound Interest

Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide SAVINGS ACCOUNTS Learn the basic vocabulary of savings accounts. Compute simple.

6-2 PAY PERIODS AND HOURLY RATES

1 Chapter 11 Time Value of Money Adapted from Financial Accounting 4e by Porter and Norton.

Financial Algebra © Cengage/South-Western Slide MODELING TAX SCHEDULES Construct income tax graphs using compound equations. OBJECTIVES.

Financial Algebra © Cengage/South-Western Slide RENTALS, CONDOMINIUMS, AND COOPERATIVES Compute costs of purchasing a cooperative or a condominium.

Financial Algebra © Cengage/South-Western Slide CREDIT CARDS Become familiar with the basic vocabulary of credit cards. Compute an average daily.

Financial Algebra © Cengage/South-Western Slide CLASSIFIED ADS Compute the cost of classified ads for used cars. Compute the cost of sales tax on.

6-5 SOCIAL SECURITY AND MEDICARE

Financial Algebra © Cengage Learning/South-Western Slide 1 10/1/201410/1/2014 WARM-UP What large purchases do you see in your future? How does one determine.

3-8 PRESENT VALUE OF INVESTMENTS

Financial Algebra © Cengage/South-Western Slide MORTGAGE APPLICATION PROCESS Compute the monthly cost of paying for a house. Understand the research.

Minds On: Future Value Tom and Beth are twins. They save for retirement as follows: – Starting at age 25, Tom deposits $1000 at the end of each year for.

Financial Algebra © Cengage Learning/South-Western 9/30/20149/30/2014 Warm-Up Sam deposits $4,000 into a CD that is continuously compounded. The CD pays.

Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide COMPOUND INTEREST FORMULA Become familiar with the derivation of the compound.

Financial Algebra © Cengage/South-Western Slide HISTORICAL AND EXPONENTIAL DEPRECIATION Write, interpret, and graph an exponential depreciation equation.

  A1.1.E Solve problems that can be represented by exponential functions and equations  A1.2.D Determine whether approximations or exact values of.

Financial Algebra © Cengage/South-Western Slide GRAPH FREQUENCY DISTRIBUTIONS Create a frequency distribution from a set of data. Use box-and-whisker.

Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide EXPLORE COMPOUND INTEREST Understand the concept of getting interest on your.

Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide BREAKEVEN ANALYSIS Determine the breakeven prices and amounts using technology.

Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide CONTINUOUS COMPOUNDING Compute interest on an account that is continuously.

Financial Algebra © Cengage/South-Western Slide RETIREMENT INCOME FROM SAVINGS Calculate future values of retirement investments that are both single.

Section 4C Loan Payments, and Credit Cards Pages C.

Section 1.1, Slide 1 Copyright © 2014, 2010, 2007 Pearson Education, Inc. Section 8.5, Slide 1 Consumer Mathematics The Mathematics of Everyday Life 8.

Mathematics of Finance. We can use our knowledge of exponential functions and logarithms to see how interest works. When customers put money into a savings.

Section 1.1, Slide 1 Copyright © 2014, 2010, 2007 Pearson Education, Inc. Section 8.2, Slide 1 Consumer Mathematics The Mathematics of Everyday Life 8.

Section 4D Loan Payments, and Credit Cards Pages

Loans and Investments Lesson 1.5.

Financial Algebra © Cengage/South-Western Slide LIFE INSURANCE Compute the cost of different types of life insurance. Understand advantages and disadvantages.

Lesson 7.8: Simple Interest

Financial Algebra © Cengage Learning/South-Western Warm-UpWarm-Up Grab a paper from the back Susan wants to invest her $1,500 into a savings account that.

Lesson 5-8 Simple Interest.

OBJECTIVES 3-3 SAVINGS ACCOUNTS

OBJECTIVES 8-4 PURCHASE A HOME Estimate closing costs.

10-4 CASH FLOW AND BUDGETING

3-5 COMPOUND INTEREST FORMULA

5-5 LINEAR AUTOMOBILE DEPRECIATION

4-3 LOAN CALCULATIONS AND REGRESSION

OBJECTIVES 10-1 UTILITY EXPENSES

Financial Algebra © Cengage/South-Western Slide FUTURE VALUE OF INVESTMENTS Calculate the future value of a periodic deposit investment. Graph the.

5-6 HISTORICAL AND EXPONENTIAL DEPRECIATION

Financial Algebra © Cengage/South-Western Slide CONTINUOUS COMPOUNDING Compute interest on an account that is continuously compounded. OBJECTIVES.

3.3 Personal Finance. Compound Interest Steady Withdrawal/Deposits x x.

Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide RECONCILE A BANK STATEMENT Reconcile a checking account with a bank statement.

3 BANKING SERVICES 3-4 Explore Compound Interest

Financial Algebra © Cengage Learning/South-Western Warm-UpWarm-Up Grab a paper from the back AND pull out Friday’s notes Manny invests $40,000 in a one.

Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide COMPOUND INTEREST FORMULA Become familiar with the derivation of the compound.

Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide SAVINGS ACCOUNTS Learn the basic vocabulary of savings accounts. Compute simple.

Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide PRESENT VALUE OF INVESTMENTS Calculate the present value of a single deposit.

Financial Algebra © Cengage/South-Western Slide 1 CONSUMER CREDIT 4-1Introduction to Consumer Credit 4-2Loans 4-3Loan Calculations and Regression 4-4Credit.

Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide FUTURE VALUE OF INVESTMENTS Calculate the future value of a periodic deposit.

How do we solve exponential and logarithmic equations and equalities?

Financial Algebra © Cengage/South-Western Slide 1 CONSUMER CREDIT 4-1Introduction to Consumer Credit 4-2Loans 4-3Loan Calculations and Regression 4-4Credit.

Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide CONTINUOUS COMPOUNDING Compute interest on an account that is continuously.

Section 13.2 Loans. Example 8 Find the future value of each account at the end of 100 years if the initial balance is $1000 and the account earns: a)

Chapter 5, section 2 Calculating interest.

4 CONSUMER CREDIT 4-1 Introduction to Consumer Credit 4-2 Loans

4-1 INTRODUCTION TO CONSUMER CREDIT

3-8 PRESENT VALUE OF INVESTMENTS

Unit 4.3 LOAN CALCULATIONS AND REGRESSION

I = PRT I = P x R x T nterest rincipal ate ime Simple Interest

WARMUP George is getting a loan to buy a car. He will borrow $17,000 for 4 years at 7.2%. What are his monthly payments? How much in finance charges.

More Applications of Percents

Presentation transcript:

4-3 LOAN CALCULATIONS AND REGRESSION Banking 4/19/2017 4-3 LOAN CALCULATIONS AND REGRESSION OBJECTIVES Calculate the present value of a single deposit investment. Calculate the present value of a periodic deposit investment. Chapter 1

Key Terms monthly payment calculator natural logarithm linear regression equation quadratic regression equation cubic function cubic regression equation

Example 1 Hannah is taking out a 4.3% loan to purchase an $18,000 car. The length of the loan is 8 years. How much will she pay in interest?

Exponential Bases and Natural Logarithms

Loan Length Formula M = monthly payment p = principal r = interest rate t = number of years

Example 2 Claude wants to borrow $25,000 to purchase a car. After looking at his monthly budget, he realizes that all he can afford to pay per month is $300. The bank is offering a 5.9% loan. What would need to be the length of his loan be so that he can stay within his budget?

EXAMPLE 3 This lesson opened with a discussion about a $100,000 loan with an APR of 7.5% taken out in January 2010 for a period of 15 years. Examine the table of decreasing loan balances over the 15-year period. Use regression to determine a curve of best fit for this data.

CHECK YOUR UNDERSTANDING Use the linear, quadratic, and cubic regression equations determined in Example 3 to compare the computed loan balances when x = 2 with the loan balance amount given in the chart for 2011.