## Financial Calculations

### Worksheets

Some Worksheets will be assigned for this chapter.

Worksheets to be determined.

Information about the worksheets will be given in class.

The worksheets may have individual data for each student so are not posted here.

### Homework From Textbook

- Section 6.1: 1-9 odd (and 2-10 even are good extra practice if you need it.)
- Section 6.2: 1-15 odd (and 2-14 even are good extra practice if you need it.)
- Section 6.3: 1,3,5,7,11 (and 2, 4, 6, 8, 12 are good extra practice if you need it.)
- Section 6.4: 1,3,5,7,9,11 (and 2, 4, 6, 8, 10 are good extra practice if you need it.)
- Section 6.5: 1,2,3,4,5,7,9,10,11,12,13,15, 17 (and 8, 14, 16, 18 are good extra practice if you need it). In this section I listed even numbered problems as assigned when there are two consecutive problems that relate to each other {1,2,3,4} of {9,10} of {11,12}.
- Section 6.6: This is Practice & Review: We are not explicitly doing this section in class. I am already talking about the topic of this section as I discuss how to identify what is going on in each problem as we work on them in class. You should do problems in this section as practice to help you master identifying the type of problem when problems are mixed together in context.
- Section 6.7: Review Section: All problems are good practice for this chapter
**Section 6.6 & 6.7 Review File**: has Questions with Answers to facilitate study and review in these sections

#### If you want extra practice: Additional Practice Problems are Available for Review online at Lumen Learning

- Annuity Practice Problems with answers

**Adjustable Rate Mortgages**

- Understanding Adjustable Rate Mortgages
- Optional Resource if you want to learn about ARM Adjustable Rate Mortgage

### ****Homework Notes for Homework from Textbook****

Its recommended that you do as many suggested "extra problems" as you need to master this material - so that you can recognize quickly what problems are asking and be proficient enough to put together and solve problems in a short amount of time. Some students may need more or less practice than others to master the material.

#### Section 6.2

Do not do problem 16 - we did not cover the "rule of 70" . The rule of 70 is a method of approximating the time needed to double an investment. In our class we are expected to use logs to solve exactly for t if we are asked to find the length of time for an investment. Using the rule of 70 is not acceptable in this class.

#### Sections 6.3 and 6.4

If you are confused about present value (P) and future value (A) for a stream ov payments
(annuities and loan), the video link below may help you understand the timing of events
for each concept.

Present Value is P in our formulas; it is often also abbreviated PV

Future Value is A in our formulas (meaning accumulated value): it is also often abbreviated
FV

Understanding present value (now) versus future value (Later): No math – just the concepts of P and A compared https://www.youtube.com/watch?v=dnyxOotkC0Q By Bon Crowder at mathfour.com

#### Section 6.3

Skip problems 9 and 10 - they cover payments at the beginning of the period instead of at the end of the period. We did not cover that in class. If you wish to do those problems, you can read in the textbook about how to adjust the calculations when payments are at the beginning of the period.

#### Section 6.4

Question 12 is sometimes ambiguous, in my opinion, and may be difficult to understand exactly what it is asking, so I don't assign it. If you want to try it and understand what it is asking , its OK to do.

#### Section 6.5

#6 is not assigned as we will do an amortization schedule as a worksheet instead.

#### Section 6.5

#14 and #16 are highly recommended as extra practice in finding the fair market value (selling price) of a bond.

**Section 6.6 & 6.7 Review File:**

Contains Sections 6.6, 6.7 Review Questions with Answers to facilitate study and review in this section.