Tuesday, May 1, 2007

Personal Finance

Today we started off with problems on personal finance. It was a little confusing because the P/Y were changing meanings when i got there. P/Y means Payments Per Year. But there are still some problems with it that we have to understand.

So these are some problems we did in class:

We had problems with this problem but all we had to do is find the FV. Today we had problems on stating whether the P/Y was to be 2 because i thought that Payments per year meant how many times have you added money in a year. Here im not sure if we add any money at all.

Same here. We got this question right even though we did not do the correct way of doing it. I put 1 payment per year because were trying to find how long will 12000 turn to 15000 PER YEAR.

So what we really did today was just to help everybody understand that Payment Per Year is how many times money is being added every time it is compounded.

The next scribe will be... my dear friend TENNYSON

No comments:

Post a Comment