1. PersonalFinance ormanagingyourmoney

2. A=AMOUNTofmoneyattheendofthetermP=PRINCIPLEamount,theamountoriginallyinvestedorborrowedr=RATEofinterestasadecimalnumbern=NUMBERoftimestheprincipleiscompoundedperyeart=TIMEinyears TimePrincipleRateInterestBalance 3. Youinvest$6500.00at5.25%interestcompoundedmonthly.How muchmoneywillyouhaveattheendof4years?$8015.24A=AMOUNTofmoneyattheendofthetermP=PRINCIPLEamount,theamountoriginallyinvestedorborrowedr=RATEofinterestasadecimalnumbern=NUMBERoftimestheprincipleiscompoundedperyeart=TIMEinyears 4. UsingtheTVM(TimeValueMoney)Solver... Youinvest$6500.00at 5.25%interest TotalNumberofpaymentstotheaccount compoundedmonthly.(#yearsinaccount)(#timespayments/year) Howmuchmoneywill youhaveattheendof fouryears? N=48 I%=5.25 PV=6500 PMT=0 FV=8015.24 P/Y=12 C/Y=12 PMT:ENDBEGIN 5. UsingtheTVM(TimeValueMoney)Solver...TotalNumberofpaymentstotheaccount (#yearsinaccount)(#timespayments/year) AnnualInterestN=48rateasapercent I%=5.25PV=6500PMT=0FV=8015.24P/Y=12C/Y=12PMT:ENDBEGIN 6. UsingtheTVM(TimeValueMoney)Solver...TotalNumberofpaymentstotheaccount (#yearsinaccount)(#timespayments/year) AnnualInterest N=48rateasapercentI%=5.25 PresentValue PV=6500oftheaccount PMT=0 FV=8015.24 P/Y=12 C/Y=12 PMT:ENDBEGIN 7. UsingtheTVM(TimeValueMoney)Solver...TotalNumberofpaymentstotheaccount (#yearsinaccount)(#timespayments/year) AnnualInterest N=48rateasapercentI%=5.25 PresentValue PV=6500PayMenTsmade oftheaccount PMT=0totheaccount FV=8015.24FutureValue P/Y=12oftheaccount C/Y=12 PMT:ENDBEGIN 8. UsingtheTVM(TimeValueMoney)Solver...TotalNumberofpaymentstotheaccount (#yearsinaccount)(#timespayments/year) AnnualInterestrateasapercentN=48 I%=5.25 PresentValuePayMenTsmade PV=6500oftheaccounttotheaccount PMT=0 FutureValueNumberofPaymentsFV=8015.24oftheaccountmadeperYearP/Y=12NumberofCompounding C/Y=12 periodsperYear PMT:ENDBEGIN 9. UsingtheTVM(TimeValueMoney)Solver... Youinvest$4500.00at5.75%interestcompoundedmonthly. Howmuchmoneywillyouhaveattheendofthreeyears?TotalNumberofpaymentstotheaccount(#yearsinaccount)(#timespayments/year) AnnualInterest N=48 rateasapercent I%=5.25PresentValue PayMenTsmadePV=6500 oftheaccount totheaccountPMT=0FutureValue FV=8015.24 NumberofPaymentsoftheaccount P/Y=12 madeperYear C/Y=12 NumberofCompounding PMT:ENDBEGINperiodsperYear PMT:Dependsonwhenpaymentsaremadeeachcompoundingperiod,weusuallyuseEND [ALPHA][SOLVE] 10. What'sthedifference?N= N= I%=I%= PV=PV= PMT= PMT= FV=FV= P/Y= P/Y= C/Y= C/Y= PMT:ENDBEGIN PMT:ENDBEGIN 11. SolveforN(thenumberofpayments)...Tobuyanewcaryoumusttakeoutaloanof$10593.30.Youcan affordapaymentof$238permonth.Thedealershipoffersyouan annualinterestrateof3.75%compoundedmonthly.Howmanypaymentsmustyoumake?Howmuchinteresthaveyoupaid?N=I%=PV=PMT=FV=P/Y=C/Y=PMT:ENDBEGIN 12. SolveforI(therateofinterest)... Acertainuniversityprogramwillcost$20000.Whatannual interestrate,compoundedmonthly,mustyouobtainifyoucan save$288.50permonthforthenextfiveyearsandhopetohave allthemoneysavedbythattime? N=I%=PV=PMT=FV=P/Y=C/Y=PMT:ENDBEGIN 13. SolveforPV(thevaluenow)...Youplantobuyacar.Youcanmakemonthlypaymentsof$525 andtheinterestrateadvertisedforcarloansis6.25%, compoundedmonthly.Ifthedealershipisofferingyoufinancingfor twoyearshowmuchcarcanyouafford? N= I%= PV= PMT= FV= P/Y= C/Y= PMT:ENDBEGIN 14. SolveforFV(thefuturevalue)...Youdecidetoinvest$6500.Thebankoffersaninterestrateof 8.25%compoundedannually.Whatwillyourmoneybeworthin7 yearsiftheinterestrateremainsunchanged? HOMEWORKN= I%= PV= PMT= FV= P/Y= C/Y= PMT:ENDBEGIN 15. WatchingMoneyGrow... HOMEWORKN=CalculatethefinalbalanceI%=if$7500wereinvestedatPV=8%peryear,compoundedPMT=semiannuallyfor6years.FV=P/Y=C/Y=PMT:ENDBEGIN Howlongwillittake$12000N=investedat7.2%peryear,I%=compoundedquarterly,toPV=growto$15000?PMT=FV=P/Y=C/Y=PMT:ENDBEGIN 16. InvestingRegularly... HOMEWORKCalculatethefinalbalanceif$1500wereN=investedat8%peryear,compoundedsemi I%=annually,withadditionalinvestmentsof$1000 PV=attheendofeverysixmonthsforfiveyears.PMT=FV=P/Y=C/Y=PMT:ENDBEGIN Howlongwillittaketosave$35000,if$2500 N=wereinvestedat7.2%peryear,compounded I%=quarterly,followedbyanadditional$400atthe PV=endofeach3monthperiod?PMT=FV=P/Y=C/Y=PMT:ENDBEGIN 17. Attachments FinanceCatbyflickrusero205billege