
What is the total savings plus interest when $25
is deposited into an account every month for 8 months at
1% compounded monthly?
 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)
 other
Answer the clicker question and then write out a scenario for each
of the choices.
 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?
 lump
 periodic payment
 both of the above
 other
 What algebraic operations did we use to derive the periodic payment/annuity formula?
 multiplication, distribute, factor
 rule for powersadd the exponents
 subtraction
 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?
 lump
 periodic
 neitherI would refuse the winnings
1. d
2. c
3. d