What is the future value compound interest formula?
100
The gradual elimination of a liability, such as a mortgage, in regular payments over a specified period of time. Such payments must be sufficient to cover both principal and interest.
What is an amortized loan?
100
The total interest earned on a savings account with $5000 at 3% interest for 4 years
What is $600?
100
time, in years
What is t?
100
One time deposit or one time pay off of a loan, with compounded interest
When do you use compound interest formula?
200
C/r
What is the present value of a perpetuity formula?
200
An investment plan characterized by regular deposits, such as an IRA or 401K.
What is an annuity?
200
The future value on an annuity with $20 monthly payments at 6% interest compounded monthly for 7 years.
What is $2081?
200
Future value, total at the end of the time period
What is A?
200
When interest is not "compounding"
When do you use simple interest formula?
300
A=P ((1+r/n)^(nt)-1)/(r/n)
What is the future value of an annuity formula?
300
A normalized representation of an interest rate, based on a compounding period of one year.
What is annual yield?
300
The monthly payment on a 30 year mortgage for a $200,000 house at 4% interest compounded monthly.
What is $955?
300
Number of compoundings per year
What is n?
300
to compare interest rates with different compounding frequencies
When do you use annual yield formula?
400
PMT=P(r/n)/(1-(1+r/n)^(-nt))
What is the payment formula for an amortized loan?
400
Original value minus new value, divided by original value
What is percent change?
400
The total interest paid on a 30 year mortgage with $955 monthly payments on a $200,000 house.
What is $143,800?
400
Interest rate, expressed as a percentage
What is r?
400
For investment savings with regular, repeated deposits
When do you use annuity formula?
500
y=(1+r/n)^n-1
What is the annual yield formula
500
PMT*n*t minus P
What is total interest paid on amortized loan?
500
The better investment interest rate, between 5% compounded semiannually or 4.9% compounded weekly.
What is 5% compounded semiannually?
500
Present value, the amount of money currently in possession
What is P?
500
for compounded interest loan with regular payments made over the term of the loan