What is the total savings plus interest when $25
is deposited into an account every month for 8 months at
1% compounded monthly?
Answer the clicker question and then write out a scenario for each
of the choices.
- 25( (1+.01/12)(8*12)
- 25( (1+.01/12)(8*12) -1)/(.01/12)
- 25( (1+.01/8)8 -1)/(.01/8)
- 25( (1+.01/12)8 -1)/(.01/12)
- Joan saved early for the first 10 years and then vacationed for the
remaining 34 years. Which formulas must be used to
calculate her total savings plus interest?
- periodic payment
- both of the above
- What algebraic operations did we use to derive the periodic payment/annuity formula?
- multiplication, distribute, factor
- rule for powers-add the exponents
- all of the above
- more than one, but not all of the above
- For the lottery, would you take a lump sum or periodic payment option?
- neither--I would refuse the winnings