Scribd
Upload
35 views

MCR3U Game # 8 Payment Plans

To save $10,000 in 5 years with monthly payments into an account paying 5% annual interest compounded monthly, the payment amount should be approximately $167 each month. This was determined by first doing a manual calculation without a calculator, then confirming the answer using the financial calculator's time value of money functions.

Uploaded by

api-25935812
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PDF, TXT or read online on Scribd
35 views

MCR3U Game # 8 Payment Plans

To save $10,000 in 5 years with monthly payments into an account paying 5% annual interest compounded monthly, the payment amount should be approximately $167 each month. This was determined by first doing a manual calculation without a calculator, then confirming the answer using the financial calculator's time value of money functions.

Uploaded by

api-25935812
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 7

MCR3U Game # 8 Payment Plans

You would like to have $10 000 in 
5 years for a newer car.  Starting 
in one month, you have decided to 
make monthly payments into an 
account paying 5%/a compounded 
monthly.  How much should each 
payment be?

You are to answer this question 
without technology first and then 
confirm your answer using the 
TVM solver application on the TI 
graphing calculator.

1
2
Negative Exponents Takeup From Friday ...

3
4
What should the 
x graph of 2x look 
x 2 like?

All positive function values!
Will not be linear since the values increase exponentially (multiplier of 2 ­ 
100% growth, doubling every time)
As x approaches infinity, the function values approach infinity.
As x approaches negative infinity, the function values approach, but never 
attain zero.
The function passes through the vertical axis at 1.

5
Exponential Growth

asymptote
(boundary 
line)

6
How about 
x
0.5 ?
Exponential Decay

Asymptote (boundary line)

You might also like