Key Concepts and Skills Chapter Outline

Key Concepts and Skills

Chapter Outline

Uneven cash flow in future v

Multiple Cash Flows –Future Value Example 6. 1

Multiple Cash Flows – FV Example 2

Multiple Cash Flows – Example 2 Continued

Multiple Cash Flows – FV Example 3

Multiple Cash Flows – Present Value Example 6. 3

Example 6. 3 Timeline

Decisions, Decisions

Saving For Retirement

Saving For Retirement Timeline

Quick Quiz – Part I

Annuities and Perpetuities Defined

Annuities and the Calculator

Annuity – Example 6. 5

Annuity – Sweepstakes Example

Buying a House

Buying a House - Continued

Annuities on the Spreadsheet Example

Quick Quiz – Part II

Finding the Payment

Finding the Payment on a Spreadsheet

Finding the Rate

Quick Quiz – Part III

Future Values for Annuities

Annuity Due

Annuity Due Timeline

Perpetuity – Example 6. 7

Quick Quiz – Part IV

Work the Web Example

Table 6. 2

Effective Annual Rate (EAR)

Annual Percentage Rate

Computing APRs

Things to Remember

Computing EARs - Example

EAR - Formula

Decisions, Decisions II

Computing APRs from EARs

APR - Example

Computing Payments with APRs

Present Value with Daily Compounding

Continuous Compounding

Quick Quiz – Part V

Pure Discount Loans – Example 6. 12

Interest-Only Loan - Example

Work the Web Example

Quick Quiz – Part VI