MAT 043 Pitt Community College What Is Your Monthly Cash Flow Algebra Worksheet

MAT 043 Lesson 23: Savings planThis is used when payments are regularly added to an account.
Savings plan formula:
𝐀 = 𝐏𝐌𝐓 𝐱 [
(𝟏+
𝐀𝐏𝐑 (𝐧𝐘)
)
−𝟏
𝐧
𝐀𝐏𝐑
(
)
𝐧
]
A = total amount after y years
PMT = amount of the payment
APR = annual percentage rate
n = number of payments made per year
Y = time in years
Use the savings plan formula to find each missing value. Round each monetary answer to the nearest cent if
needed. Show your work!
1.
PMT = $500, APR = 2.5%, n = 12, Y = 20 yr.
2.
A = $200,500, APR = 12%, n = 4, Y = 12 yr.
Practice Problems
3.
PMT = $75, APR = 7%, n = 12, Y = 10 yr.
1
4.
PMT = $250, APR = 1.5%, n = 6, Y = 8 yr.
5.
A = $17,000, APR = 2.55%, n = 12, Y = 3 yr.
6.
A = $10,000, APR = 8%, n = 12, Y = 6 yr.
7.
At age 30, Michelle starts an IRA (Individual Retirement Account) to save
for retirement. She deposits $100 at the end of each month. If she can
count on an APR of 6%, how much will she have when she retires at age
65?
8.
You want to build a $100, 000 college fund in 18 years by making a
regular, end-of-month deposits. Assuming an APR of 7%, calculate how
much you should deposit monthly.
2
MAT 043 Lesson 24: Loan Payments
This is used to calculate the payment amounts on a loan.
Loan payment formula:
𝐀𝐏𝐑
)
𝐧
(−𝐧𝐘)
𝐀𝐏𝐑
𝐏𝐱(
𝐏𝐌𝐓 =
[𝟏−(𝟏+
𝐧
)
]
P = principal amount of loan
PMT = amount of the payment
APR = annual percentage rate
n = number of payment is made per year
Y = time in years
Use the loan payment formula to find each missing value. Round each monetary answer to the nearest cent if
needed. Show your work!
1.
P = $22,500, APR = 5.4%, n = 12, Y = 8 yr.
2.
PMT = $300, APR = 5.8%, n = 12, Y = 8 yr.
Practice Problems
3.
P = $350,000, APR = 7.8%, n = 12, Y = 30 yr.
1
4.
P = $45,000, APR = 3.9%, n = 12, Y = 5 yr.
5.
PMT = $750, APR = 7.9%, n = 12, Y = 30 yr.
6.
PMT = $180, APR = 21%, n = 12, Y = 4 yr.
7.
For a loan of $24,000 at a fixed APR of 8% for 15 years, find the monthly
payment.
8.
You can afford a monthly payment of $375 for a new car loan. You want
the loan to last for 5 years so that you can take advantage of a 1.9% APR
offer. What price can you afford for a new car?
2
MAT 043 Lesson 24: Loan Payments
This is used to calculate the payment amounts on a loan.
Loan payment formula:
𝐀𝐏𝐑
)
𝐧
(−𝐧𝐘)
𝐀𝐏𝐑
𝐏𝐱(
𝐏𝐌𝐓 =
[𝟏−(𝟏+
𝐧
)
]
P = principal amount of loan
PMT = amount of the payment
APR = annual percentage rate
n = number of payment is made per year
Y = time in years
Use the loan payment formula to find each missing value. Round each monetary answer to the nearest cent if
needed. Show your work!
1.
P = $22,500, APR = 5.4%, n = 12, Y = 8 yr.
2.
PMT = $300, APR = 5.8%, n = 12, Y = 8 yr.
Practice Problems
3.
P = $350,000, APR = 7.8%, n = 12, Y = 30 yr.
1
4.
P = $45,000, APR = 3.9%, n = 12, Y = 5 yr.
5.
PMT = $750, APR = 7.9%, n = 12, Y = 30 yr.
6.
PMT = $180, APR = 21%, n = 12, Y = 4 yr.
7.
For a loan of $24,000 at a fixed APR of 8% for 15 years, find the monthly
payment.
8.
You can afford a monthly payment of $375 for a new car loan. You want
the loan to last for 5 years so that you can take advantage of a 1.9% APR
offer. What price can you afford for a new car?
2
MAT 043 Lesson 24: Loan Payments
This is used to calculate the payment amounts on a loan.
Loan payment formula:
𝐀𝐏𝐑
)
𝐧
(−𝐧𝐘)
𝐀𝐏𝐑
𝐏𝐱(
𝐏𝐌𝐓 =
[𝟏−(𝟏+
𝐧
)
]
P = principal amount of loan
PMT = amount of the payment
APR = annual percentage rate
n = number of payment is made per year
Y = time in years
Use the loan payment formula to find each missing value. Round each monetary answer to the nearest cent if
needed. Show your work!
1.
P = $22,500, APR = 5.4%, n = 12, Y = 8 yr.
2.
PMT = $300, APR = 5.8%, n = 12, Y = 8 yr.
Practice Problems
3.
P = $350,000, APR = 7.8%, n = 12, Y = 30 yr.
1
4.
P = $45,000, APR = 3.9%, n = 12, Y = 5 yr.
5.
PMT = $750, APR = 7.9%, n = 12, Y = 30 yr.
6.
PMT = $180, APR = 21%, n = 12, Y = 4 yr.
7.
For a loan of $24,000 at a fixed APR of 8% for 15 years, find the monthly
payment.
8.
You can afford a monthly payment of $375 for a new car loan. You want
the loan to last for 5 years so that you can take advantage of a 1.9% APR
offer. What price can you afford for a new car?
2
MAT 043 Lesson 23: Savings plan
This is used when payments are regularly added to an account.
Savings plan formula:
𝐀 = 𝐏𝐌𝐓 𝐱 [
(𝟏+
𝐀𝐏𝐑 (𝐧𝐘)
)
−𝟏
𝐧
𝐀𝐏𝐑
(
)
𝐧
]
A = total amount after y years
PMT = amount of the payment
APR = annual percentage rate
n = number of payments made per year
Y = time in years
Use the savings plan formula to find each missing value. Round each monetary answer to the nearest cent if
needed. Show your work!
1.
PMT = $500, APR = 2.5%, n = 12, Y = 20 yr.
2.
A = $200,500, APR = 12%, n = 4, Y = 12 yr.
Practice Problems
3.
PMT = $75, APR = 7%, n = 12, Y = 10 yr.
1
4.
PMT = $250, APR = 1.5%, n = 6, Y = 8 yr.
5.
A = $17,000, APR = 2.55%, n = 12, Y = 3 yr.
6.
A = $10,000, APR = 8%, n = 12, Y = 6 yr.
7.
At age 30, Michelle starts an IRA (Individual Retirement Account) to save
for retirement. She deposits $100 at the end of each month. If she can
count on an APR of 6%, how much will she have when she retires at age
65?
8.
You want to build a $100, 000 college fund in 18 years by making a
regular, end-of-month deposits. Assuming an APR of 7%, calculate how
much you should deposit monthly.
2
MAT 043 Lesson 24: Loan Payments
This is used to calculate the payment amounts on a loan.
Loan payment formula:
𝐀𝐏𝐑
)
𝐧
(−𝐧𝐘)
𝐀𝐏𝐑
𝐏𝐱(
𝐏𝐌𝐓 =
[𝟏−(𝟏+
𝐧
)
]
P = principal amount of loan
PMT = amount of the payment
APR = annual percentage rate
n = number of payment is made per year
Y = time in years
Use the loan payment formula to find each missing value. Round each monetary answer to the nearest cent if
needed. Show your work!
1.
P = $22,500, APR = 5.4%, n = 12, Y = 8 yr.
2.
PMT = $300, APR = 5.8%, n = 12, Y = 8 yr.
Practice Problems
3.
P = $350,000, APR = 7.8%, n = 12, Y = 30 yr.
1
4.
P = $45,000, APR = 3.9%, n = 12, Y = 5 yr.
5.
PMT = $750, APR = 7.9%, n = 12, Y = 30 yr.
6.
PMT = $180, APR = 21%, n = 12, Y = 4 yr.
7.
For a loan of $24,000 at a fixed APR of 8% for 15 years, find the monthly
payment.
8.
You can afford a monthly payment of $375 for a new car loan. You want
the loan to last for 5 years so that you can take advantage of a 1.9% APR
offer. What price can you afford for a new car?
2
MAT 043 Lesson 19: Budgeting Activity
For this activity, you may use estimated amount for your current income and expenses, OR you may use
estimated amounts for income and expenses that you expect to have upon completion of your education.
In the chart below, list all sources of income with the estimated monthly amount.
Sources of Income
(Examples: job, financial aid, child support,
Approximate Monthly Amount
interest, etc.)
Total Income
In the chart below, list all expenses with the estimated monthly amount.
Expenses
(Examples: rent, tuition, car payment, car
Approximate Monthly Amount
insurance, utilities, food, gas, medical, etc.)
Total Expenses
1
Using the totals from your charts, answer the following:
1. What is your total income per month?
2. What is your total expenses per month?
3. What is your monthly cash flow (income – expenses)?
4. Is your cash flow positive or negative?
5. If your cash flow is negative, what can you change to improve your financial situation?
(Please answer this question even if your cash flow is positive. What would you do if it ever
became a negative cash flow?)
6. If your cash flow is positive, what are your plans for the extra money you have?
(Please answer this question even if your cash flow is negative. What would you do with any
extra money per month?)
2