Newton's Law of Cooling T(t)=Tm + (To - Tm)e-kt Measure of aciditity ...
Newton's Law of Cooling T(t)=Tm + (To - Tm)e-kt Measure of aciditity ...
Newton's Law of Cooling T(t)=Tm + (To - Tm)e-kt Measure of aciditity ...
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
November 16, 2011
November 16, 20113.6 Finance MathInterest Compounded AnnuallyA = P(1 + r) nInterest Compounded k Times per YearA = P 1 + r k<strong>kt</strong>Interest Compounded ContinuouslyA = Pe rt
1. Mary has $600 to invest at 8% annual interestcompounded monthly. How long will it take for herinvestment to grow to $2400?November 16, 2011
2. John invests $200 at 7% annual interestcompounded continuously. Find the value <strong>of</strong> hisinvestment at the end <strong>of</strong> each <strong>of</strong> the years 1, 2, ... , 7.November 16, 2011
November 16, 2011Annual Percentage Yield (APY) the percentage ratethat, compounded annually, would yield the same returnas the given interest rate with the given compoundedperiod.https://www.huntington.com/GetRatesServlet?productGroup=MORT&zip=43215<strong>To</strong>m invests $2000 with Key Bank at 5.15% annual interestcompounded quarterly. What is the equivalent APY?
November 16, 2011annuity: sequence <strong>of</strong> equal periodic paymentsordinary: deposits are made at the end <strong>of</strong> eachperiod at the same time the interest is posted in theaccountFuture Value <strong>of</strong> an annuity, consisting <strong>of</strong> n equalperiodic payments <strong>of</strong> R dollars at an interest rate <strong>of</strong> iper compounding period (payment interval) is:FV = Rr(1 + ) <strong>kt</strong> - 1krkFV = R (1 + i)n - 1ii =rkn = <strong>kt</strong>
3. At the end <strong>of</strong> each quarter, Emily makes a $400payment into the Smithville Financial Fund. If herinvestments earn 7.75% annual interest compoundedquarterly, what will be the value <strong>of</strong> Emily's annuity in25 yrs?November 16, 2011
November 16, 2011Present Value <strong>of</strong> an Annuity consisting <strong>of</strong> n equalpayments <strong>of</strong> R dollars earning an interest rate i perperiod (payment interval) is:PV = R 1 - (1+i)-niPV = R1 - (1 + ) -<strong>kt</strong>rkrkCindy purchases a new car for $19,000. What are themonthly payments for a 3-year loan with a $3000 downpayment if the annual interest rate (APR) is 3.1%
Change language