1. Discrete Mathematics Chapter 10 Money

2. Percentage

3. Tipping 15% is usually considered a normal tip. How much would you have to tip for a bill: $6.40 $0.96 $154.25 $23.14 $99.87 $14.98

4. Simple Interest APR: Annual Percentage Rate Interest Rate Principal

5. Simple Interest Only original money will gain interest You have $1000 in a savings account when you open it. The bank gives you a 5% interest rate. After 5 years how much interest will be earned?

7. Simple Interest Formula

8. Saving Bond Suppose that you buy an $875 savings bond that pays 4.28% annual simple interest. Determine the future value of the bond after – Four years $1024.80 – Five years $1062.25 – Ten years $1249.50

9. Suppose that you buy a $10,000 bond that pays 5% annual simple interest. When you cash in the bond, you have to pay 15% federal taxes on the interest you earned. How much money would you net if you cash in the bond after five years? Round to the nearest penny. $12,125

10. A loan of $5400 collects simple interest each year for eight years. At the end of that time, a total of $8316 is paid back. Determine the APR for this loan. 6.75%

11. Problems Page 392 #2-30 even

12. Compound Interest The previous amount is effected by the interest.

13. $100 at 5% APR Simple $105 $110 $125 $150 $200 $250 $300 $350 $400 Compound $105.00 $110.25 $127.63 $162.89 $265.33 $432.19 $704.00 $1146.74 $1867.92

14. Annual Compound Formula

15. Compare Simple and Compound

16. Compound Interest You want to save for a cruise. You need $2000 but right now you only have $875. You decide to invest it in a savings account that offers 6.75% APR and it is compounded annually. How much will you have in 7.5 years? $1382.24 – How much would you have to originally invest? $1266.06

17. Compound Monthly

18. General Compound Interest

19. $875 at 6.75% CompoundedAfter 7 years Annually Quarterly Monthly Daily Hourly Minutely Secondly CompoundedAfter 7 years Annually$1382.24 Quarterly$1397.98 Monthly$1401.64 Daily$1403.44 Hourly$1403.50 Minutely$1403.50 Secondly$1403.50

20. What did you see They all approached a number – $1403.50

21. Continuous Compound Formula aka PERT

22. Problems Page 393 #32-50 even

23. Fixed Deferred Annuity

24. After a child is born the parents decide to put aside $100 a month in a trust fund to help save for college. The interest rate is compounded monthly at 6%. How much will be saved after 18 months? T = 216 p = 0.005 L = 100.50

25. Installment Loans

26. New Car The price of a new car is $23,995. You have a $5,000 down payment and the dealer has two offers that you can choose from. The first is a $2,000 rebate, the second is 0% APR for 60 months. The normal interest rate is 6.48%. Which is the better deal? 0% for 60 months – $316.59 to $332.37

27. Problems Page 395 #64-80 even