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CPM

CPM. Compound Interest Review. After being named to his first All- Star game, getting the Cavaliers on a winning streak and hitting a 3-pt game winner. Kyrie was feeling confident… .

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CPM

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  1. CPM Compound Interest Review

  2. After being named to his first All- Star game, getting the Cavaliers on a winning streak and hitting a 3-pt game winner. Kyrie was feeling confident… Confident enough to start making payments on a house. He found a great offer on a nice little house and is ready to spend some of that NBA money!

  3. Kyrie got an incredible deal on the house, went to the bank and was able to get a loan he could do nothing but accept. The bid for the house was an unbelievable $140,000. Kyrie went ahead and locked the deal in place so he could get all moved in before the All-Star break. The loan would be compounded quarterly for 30 years at 7.5%. Kyrie wants to know what exactly he is going to be paying over these 30 years? What can we tell him?

  4. A- r- n- t- P- ??? .075 4 30 $140,000

  5. Use the formula and enter exactly into the calculator P=140000 ( 1 + .075/4)^(4*30) What will Kyrie end up paying over the entire course of his loan? $1,300,896.20

  6. Kyrie can’t get a new house without…

  7. With Kyrie’s NBA connections, he was able to work a deal for a new Lamborghini. The cost of Kyrie’s new car would cost him $200,000. He is going to put is All-Star game bonus of $15,000 as a down payment. He wants to finance his car for 5 years at 6%. How much interest will his car build over those 5 years? M= [P(r/n)]/(1-(1+r/n)^(-n*t))

  8. $200,000 - $15,000 .06 P – i – n – 12 t - 5 M=(185000(.06/12))/(1-(1+.06/12)^(-12*5)) Kyrie’s monthly car payment? $3576.57

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