#### Financial Math

Ch 5 Review Financial Math

EQ: Do you know how and when to apply the many financial math concepts we have studied?

Reviewing Interest Formulas, Monthly Payments, Depreciation, Sales Tax, Tips, Net Profit/Loss and Tax Tables. Test coming up on Friday!

Prep work: Ch 5 Review/Practice Test Complete for next class.

Don’t forget to get any missing work done by next class!

Solution key to Review: ch 5 review – solution key

Ch 5 Review Financial Math

EQ: Do you know how and when to apply the many financial math concepts we have studied?

Reviewing Interest Formulas, Monthly Payments, Depreciation, Sales Tax, Tips, Net Profit/Loss and Tax Tables. Test coming up on Friday!

Prep work: Ch 5 Review/Practice Test Complete at least 1-9 for next class.

Ch 5 Review Financial Math

EQ: What would be the benefits of a flat tax?

Reviewing Net Profit/Loss and Tax Tables

Prep work: p269(4-6) and p264(15, 22)

5.4 Mathematical Models in Purchasing an Automobile

EQ: What are the two immediate benefits from completion of missing work?

Reviewing car payments and interest models

Prep work: Textbook: p269(1-3, 7, 9, 13-15)

5.4 Mathematical Models in Purchasing an Automobile

EQ: How much will your monthly car payment be if you have a down payment?

Notes: Look at Example 2 on p.234.

Prep work: Textbook: p238(19-23, 25, 26)

5.4 Mathematical Models in Purchasing an Automobile

EQ: How much will your monthly car payment be?

Notes: Example problems 7, 13 and 23 from p.238 were done in class. Look at Examples #1 and 2 in text on page 233-234.

Prep work: Textbook: p238(7-18, 23, 24)

5.8 Mathematical Models in Personal Income

EQ: Can you pay the taxes from your paycheck?

Notes: How to read a tax table. p260 Example 2 from text and Table 5-11.

Don’t forget that the phrase “the amount over” implies subtraction.

Prep work: Textbook: p264(9, 10, 16-20) p267(1-3, 8)

5.8 Mathematical Models in Personal Income

EQ: Can you calculate your paycheck for a sales job?

Notes:

Straight Commission: Pay = (Commission Rate) * Sales

Base Salary plus Commission: Pay = Base Pay + (Commission Rate) * Sales

Base Salary plus Commission over a Minimum Sales Amount:

Pay = Base Pay + (Commission Rate) * (Sales Amount more than the Minimum)

Prep work: Textbook: p264(1-8, 11-14, 21)

5.2 Mathematical Models in Banking

EQ: What does it mean to compound continuously?

Notes: Continuous Compound Interest formula: A = P e^(r * t)

A = Maturity (total amount P + I) P = Principal r = rate in decimal form

e = Euler’s number (2.718281828…) t = time (years)

Prep work: Textbook: p225(27-30) p216(9-10, 19-22) p267(4-7, 9-13)

Retake Assignment (complete retest by 10/18):

p23(3-8, 17-27) p25(13-15) p47(1-7, 11-16, 21, 22) p49(8-12)

You also must complete at least 50% of the problems from all missing assignments.

5.2 Mathematical Models in Banking

EQ: Is compound interest good or bad?

Notes: Compound Interest formula: M = P (1 + r/n)^(n*t)

M = Maturity (total amount P + I) P = Principal r = rate in decimal form

n = # of compoundings/year t = time (years)

Prep work: Textbook: p225(21-26)

Retake Assignment (complete retest by 10/18):

p23(3-8, 17-27) p25(13-15) p47(1-7, 11-16, 21, 22) p49(8-12)

You also must complete at least 50% of the problems from all missing assignments.