- Budgeting
- Cash Management
- Consumer and Mortgage Loans
- Debt and Debt Reduction
- Time Value of Money 1: Present and Future Value
- Time Value of Money 2: Inflation, Real Returns, Annuities, and Amortized Loans
- Insurance 1: Basics
- Insurance 2: Life Insurance
- Insurance 3: Health, Long-term Care, and Disability Insurance
- Insurance 4: Auto, Homeowners, and Liability Insurance
- The Home Decision
- The Auto Decision
- Family 1: Money and Marriage
- Family 2: Teaching Children Financial Responsibility
- Family 3: Financing Children’s Education and Missions
- Investments A: Key Lessons of Investing
- Investments B: Key Lessons of Investing
Case Study #3 Answer
Using the formula, put Brady’s borrowed amount into the equation and solve for your payment. PVn,i = Payment * [ 1–( 1/(1 + i)n )]/i = PV = 20,000 = Payment * [1–(1/(1.13)5] /.13 = $5,686.29 per year.
Using a financial calculator, clear the calculator’s memory and use the following:
1 = P/Y (payments per year)
20000 = PV (the present value of the loan)
13 = I (interest rate)
5 = N (number of years)
Solve for PMT = $5,686.29
