Download presentation

Presentation is loading. Please wait.

Published byAlana Godby Modified over 9 years ago

1
Your Money and and Your Math Chapter 13 1

2
Credit Cards and Consumer Credit 13.2 2

3
You can save money if you know the following: interest rate annual fee fixed variable grace period finance charge Credit Cards 3

4
Find the new balance, assuming that the bank charges 1½% per month on the unpaid balance. Previous New BalancePaymentPurchases 1. $100.00 $10.00 $50.00 2. $378.93 $75.00 $248.99 Exercises 4

5
1. Balance = $100.00 $10.00 = $90.00 Finance Charge = $90.00 0.015 = $1.35 New Balance = $90.00 + $1.35 + $50.00 = $141.35 2. Balance = $378.93 $75.00 = $303.93 Finance Charge = $303.93 0.015 = $4.56 New Balance = $303.93 + $4.56 + $248.99 = $557.48 5

6
Use the following rates and payments table to find the following: a.finance charge for the month b.new balance c.the minimum monthly payment 1. Previous New Balance Purchases $271 $91 6

7
Finance Charge = $271.00 0.015 = $4.07 New Balance = $271.00 + $91.00 + $4.07 = $366.07 Minimum Monthly Payment = 0.05 ($366.07)=$18.30 Solution 7

8
2. Previous New Balance Purchases $760 $80 8

9
Bill Seeker bought a boat costing $8500 with $1500 down, the balance plus add-on interest to be paid in 36 monthly installments. If the add-on interest was 18%, find a.the total interest charged. b.the monthly payment to the nearest dollar. Exercise 9

10
Solution 10

11
a. Ordinary Annuity: b. Annuity Due: S = future value of annuity R = rate of payment 11

12
Ordinary Annuity: an account which receives regular periodic deposits at the end of each compounding period. Tyler has set up an ordinary annuity account and will be making monthly deposits of $150.00 with deposits earning 5.2% per year compounded monthly. Find a.the value of the annuity in 12 years. b.the total deposits Tyler will make. c.the interest earned. 12

13
c. Earned interest = $29,902.99 $21,600.00 = $8,302.99 13

14
Annuity Due: an account which receives regular periodic deposits at the beginning of each compounding period. Find the future value of an annuity due, if payments are made of $350 and interest is 4.25% compounded quarterly for 21 years. 14

15
Find the present value of an ordinary annuity, if payments are made of $475 at the end of each quarterly period for 28 years at 8.00% compounded quarterly. 15

16
Find the amount of each payment to be made into a sinking fund so that enough money will be able to pay off a loan of $29,250 due in 15 years if money is earns 7.25% compounded monthly. Assume this to be an ordinary annuity. 16

17
If Russell wanted to start making payments today, what would be the amount of each payment into a sinking fund so that enough money will be able to pay off a loan of $18,300 due in 14 years if money is earns 4.00% compounded quarterly. 17 END

Similar presentations

© 2024 SlidePlayer.com Inc.

All rights reserved.

To make this website work, we log user data and share it with processors. To use this website, you must agree to our Privacy Policy, including cookie policy.

Ads by Google