Partial Payments in Loans and Savings (UMAP)

This module relates algebra through the topic of partial payments in loans and savings. It introduces compound interest and applies it to periodic payments to both savings and loan repayment. The geometric progession formula is applied to find the relationship between periodic payment and the amount of a loan or accumulated savings.

Table of Contents:

GEOMETRIC PROGRESSION

COMPOUND INTEREST

PRESENT VALUE AT COMPOUND INTEREST

PERIODIC PAYMENTS TO AN ACCOUNT

COMPUTING THE PERIODIC PAYMENT

PERIODIC REPAYMENT OF A LOAN

FINDING THE PERIODIC PAYMENT FOR A LOAN

SUMMARY

FURTHER STUDY

REFERENCES

SAMPLE EXAM

SOLUTIONS TO EXERCISES

ANSWERS TO SAMPLE EXAM