PS Prep for 1 st Semester Final

1. PS Prep for 1st Semester Final

2. Topics on Exam Wednesday • Converting % to Decimal and vice versa (1) • % Ownership of a Business (1) • Reading Stock Market Data (1) • Stock Buying and Selling Problem (1) • Checkbook Balance Problems (1) • Checkbook Register Reconciliation (1) • Simple Interest Problems (1) • Compound Interest Problems (1) • Periodic Deposits – Present & Future Value (2) • Monthly Interest Calculation (3) • % Ranking (1) • Vocabulary (4) Thursday Friday Monday

3. Wednesday • Page 7, #2 and 5 • Page 44, #4 • Convert % to decimal

4. Reading Stock Mrkt Data - Wed

5. 1st a Discussion, then… Thursday • 1st see page 128, #6 • Quinton deposited a $587 bond interest check, a $187 stock dividend check, his weekly $1965.87 paycheck, and $200 cash into his checking account. If his starting balance was $300, what is his new balance? • Erika has a savings account at a bank that charges a $20 fee for every month her balance falls below $3,000. Her account has a balance of $3,393.44 and today she withdraws $400. What will her balance be in 6 months, if she makes no additional deposits or withdrawals?

6. Thursday – 1st a Discussion, then… • You are reconciling your bank statement with your check register and you enter the outstanding values as listed below. What is your revised statement balance? Thursday

7. Simple & Compound Interest • Why is Compound Interest is better for you? • Abbreviations: • p = Principle • r = Interest rate in decimal • t = time in years • n = number of times interest calculated per year • Problem #3 on page 159. Friday I = p r t B = p(1+r/n) (nt) Formulas will be written on the whiteboard.

8. Simple & Compound Interest • Find the Simple Interest on a $2,350 principal deposited and held for 6 years at a rate of 4.77% . • Kareca deposits $12,000.00 into an account that pays 3% interest compounded monthly. How much is in the account at the end of year 7? Friday I = p r t B = p(1+r/n) (nt) Formulas will be written on the whiteboard.

9. Simple & Compound Interest Friday • Martin deposits $1000.00 into an account that pays 6% interest compounded quarterly. How much is in the account at the end of 30 years? • (Which formula should I use?) • Vocabulary: • Quarterly, Biweekly, Simple Interest, Compound Interest • Check Register, Hold, Reconcile, Interest I = p r t B = P(1+r/n) (nt) Formulas will be written on the whiteboard.

10. Monthly Payments - Table Method Monday • Aaron buys some electronic gear for his high performance car. Its sale price is $5000. He will have monthly payments for 2 years at 6.5% interest. What is his monthly payment? • Cheepo finally buys his wife a real diamond ring. He goes all out and buys a crystal clear diamond for $6000 from Kay Jewelers (b/c every kiss begins with a “Kay” – get it?). Anyway, he will have monthly payments for 5 years at 9% , what will his monthly payment be? A Loan’s Monthly Payment – page 183 A Loan’s Monthly Payment – page 183 Formulas will be written on the whiteboard.

11. Pachanea deposits $1000.00 into an account that pays 3% interest compounded monthly. How much is in the account at the end of 7 years? Periodic Deposits – FV & PV Monday • Devontae deposits $5000.00 into an account every month for 8 years. The account pays 3% interest compounded monthly. What is her balance after the 8 years? • Alisha deposits $6000.00 into an account every year on her birthday for 17 years. The account pays 4% interest compounded yearly. What is her balance after the 17 years? FV for Periodic Deposits – page 156 B = P((1+r/n) (nt) -1) divided by (r/n) FV for Periodic Deposits– page 156 Others– page 159, #7,9 Formulas will be written on the whiteboard.