- Would you rather have a savings account that paid interest compounded on a monthly basis, or one that compounded interest on an annual basis? Why?
- What is an amortization schedule, and what are some of its uses?
- “The interest on your home mortgage is tax deductible. Why are the early years of the mortgage more helpful in reducing taxes than in the later years”?
- What is the difference between an ordinary annuity and an annuity due?
- “What is the future value of a $500 annuity payment over five years if interest rates are 9 percent” ? Recalculate the future value at 8 percent interest, and again, at 10 percent interest.
- “What is the present value of a $700 annuity payment over four years if interest rates are 10 percent” ? Recalculate the present value at 9 percent interest, and again, at 11 percent interest.