Today in Precalculus Go over homework Need a calculator Notes: Loans & Mortgages (Present Value) Homework

Loans and Mortgages An annuity in which we look determine the total amount of payments put into the annuity. PV: what is the current value of all the payments that will be made R: amount of each equal payment i: interest rate (if given APR, divide by number of payments in a year) n: total number of payments

Example 1 We can also figure out how much interest she is paying over the life of the loan. Total amount of payments: × 48 = $16, $16, $14, = $1, =$14,999.74

Example 2 17,500= R R=$323.87

Example 3 200,000= R R=$1, Total amount of Payments: × 360=$503, Interest Paid: $503,434.8-$200,000=$303,434.80

Example = t.295 = t log = -12t t =17 years So it will take 17 years to pay off the mortgage.

Example 4(cont) 1,221.82×30×12 = $439, ,532.20×17×12 = $312, So Barney and Betty save $127, by increasing their payments from $1, to $1, per month.

Homework Pg 341: 17-20, Chapter 3 test: Wednesday, January 22