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Mathematics for Business and Economics

by: Mary Veum

Mathematics for Business and Economics MATH 1070

Marketplace > University of Connecticut > Mathematics (M) > MATH 1070 > Mathematics for Business and Economics
Mary Veum
GPA 3.97


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This 3 page Class Notes was uploaded by Mary Veum on Thursday September 17, 2015. The Class Notes belongs to MATH 1070 at University of Connecticut taught by Staff in Fall. Since its upload, it has received 15 views. For similar materials see /class/205829/math-1070-university-of-connecticut in Mathematics (M) at University of Connecticut.


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Date Created: 09/17/15
Section F4 1 Section F4 Present Value of Annuities and Amortization Example 1 Suppose your rich uncle has agreed to give you a lump sum of money that you will use to pay for your child39s daycare until they are school age in five years You will invest this amount in an account now that earns 32 annual interest compounded biweekly so that you can make biweekly withdrawals of 400 for 5 years to pay for daycare How much money do you need from your rich uncle now P the present value of an ordinary annuity R the payment made at the end of each compounding period 139 rm is the interest rate per period 71 mt is the number of payments Present Value of an Ordinary Annuity 1 1 133 X may Section F 4 Example 1 cont


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