Slide 11 Project 2- Stock Option Pricing Mathematical Tools -Today we will learn Compound Interest Slide 2 2 Compounding Suppose that money left on deposit earns interest.…

1. Exponential Functions 2. ( ) 4 3 -1 2 1 3 Solve each exponential equation. 1 (a) 2 32 (b)x x x x e e e − − = = × 3 -1 5 2 2x = 3 1 5x − = 2x = 4 2 1 7 3 x x x x…

Slide 1 Chapter 14 Personal Financial Management © 2008 Pearson Addison-Wesley. All rights reserved Slide 2 © 2008 Pearson Addison-Wesley. All rights reserved 14-4-2 Chapter…

Slide 1 Exponential Growth Slide 2  Discrete Compounding  Suppose that you were going to invest $5000 in an IRA earning interest at an annual rate of 5.5%. How much…

Slide 1 Section 5.7 Compound Interest Slide 2 Slide 3 Slide 4 Slide 5 A credit union pays interest of 4% per annum compounded quarterly on a certain savings plan. If $2000…

Slide 1 1.1 Variables and Expressions Goals I can evaluate a variable expression. I can write variable expressions from word phrases. I can write a variable expression that…

MISC. * Integration Formula for consumer surplus Income stream - revenue enters as a stream - take integral of income stream to get total revenue * Integration Applications-…

7.4a Notes – Evaluate Logarithms 1. Solve for x. a. x = 2 b. c. d. x = 1 x = 0 x = -2 Logarithms allow us to easily solve for x when it is an exponent. if and only if To…

Section 6.7 Compound Interest Find the amount A that results from investing a principal P of $2000 at an annual rate r of 8% compounded continuously for a time t of 1 year.…

* Section 8.6 * Section 8.6 Amortization and the Cost of Home Ownership Objectives Understand mortgage options. Compute the monthly payment and interest costs for a mortgage.…