Simple Interest: I = Prt Simple Interest Future Value: FV = : P(1+rt) Compound Interest: FV = P(1+)nt Annual Yield: APY (1+ 5)" – 1 (1+)nt – 1 Ordinary Annuity (payments due at the end of each...

Extracted text: Simple Interest: I = Prt Simple Interest Future Value: FV = : P(1+rt) Compound Interest: FV = P(1+)nt Annual Yield: APY (1+ 5)" – 1 (1+)nt – 1 Ordinary Annuity (payments due at the end of each period): FV, = pymt · Annuity Due (payments due in the beginning of each period): FV4= pymt · (1+5)nt – 1 (1+5) r. n Present Value of Annuity: P(1+)nt = FV (annuity) (1+ 5)nt – 1 Simple Interest Amortized Loan: pymt- P(1+)n (1+ 5)nt – 1 Simple Interest Amortized Loan Unpaid Balance (after t years): P(1+5)nt – pymt- (1+ 5)nt – 1 Payout Annuity: P(1+)nt = pymt · n (1+c 1- 1+r Payout Annuity with COLA: P pymt · r - c


Extracted text: 11. Max buys a bedroom set for $2500. The dealer gave him a 3-year add-on interest loan at 6.5% interest. (a) Find the size of the monthly payment. (b) Find the interest portion of each payment.