AFA.PAR.4

AFA.PAR.4

AFA.PAR.4.1Use and rearrange formulas applicable to real-world contexts.AFA.PAR.4.10Utilize the monthly payment formula to assist in calculating the total interest paid (finance charge) when using credit. Compare the total of monthly payments to the original (cash) price.AFA.PAR.4.11Interpret and use sigma notation.AFA.PAR.4.12Explore and identify how the elements of the present value of a single deposit formula and the periodic deposit investment formula relate to the compound interest formula.AFA.PAR.4.13Utilize the present and future value of a periodic investment formulas to make calculations regarding long-term investments and retirement planning.AFA.PAR.4.2Investigate the impact of changing the value of the different variables in financial formulas to compare the resulting financial outcomes.AFA.PAR.4.3Write algebraic formulas for use in spreadsheets and utilize technology to perform both iterate and formulaic calculations.AFA.PAR.4.4Use the simple interest formula, I = Prt, and inverse operations to solve for specified variables in banking services applications and other interest problems.AFA.PAR.4.5Demonstrate by iteration (both with technology and without) that the compounding process pays “interest on your interest.”AFA.PAR.4.6Derive the compound interest formula, A = P(1 + r/t), by using patterns and inductive reasoning, then compute compound interest with and without the formula.AFA.PAR.4.7Explore the concept of limits of rational functions in discovering the compound continuous formula. Use technology to investigate and verify what happens as the number of compounds approaches infinity.AFA.PAR.4.8Apply the natural base e in the continuous compounding formula, A = Pe^rt.AFA.PAR.4.9Use the monthly payment formula to calculate payment amounts in a variety of circumstances.
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