X hits on this document

Powerpoint document

Chapter 3 Mathematics of Finance - page 20 / 20

74 views

0 shares

0 downloads

0 comments

20 / 20

Barnett/Ziegler/Byleen Finite Mathematics 12e

20

Strategy (continued)

Step 2.  If a single payment is involved, determine whether simple or compound interest is used.  Simple interest is usually used for durations of a year or less and compound interest for longer periods.

Step 3.  If a sequence of periodic payments is involved, determine whether the payments are being made into an account that is increasing in value -a future value problem - or the payments are being made out of an account that is decreasing in value - a present value problem.  Remember that amortization problems always involve the present value of an ordinary annuity.

Document info
Document views74
Page views74
Page last viewedSun Jan 22 01:42:18 UTC 2017
Pages20
Paragraphs127
Words1100

Comments