## Section 11.6: Amortization

## 11.6 Outline

- Present value of an annuity
- definition
- formula
- calculator

- Monthly payments
- define amortization
- formula
- calculator
- distinguish add-on simple interest and amortization

- Present value of an annuity
- definition
- formula
- calculator

- Monthly payments
- define amortization
- formula
- calculator
- distinguish add-on simple interest and amortization

- Ordinary Annuities
- lump-sum problems
- periodic-payment problems
- definition
- monthly payment
- ordinary annuity formula
- future value formula

- Sinking funds
- definition
- sinking fund formula

- Using a calculator for financial problems

- Finite series
- define series
- definition
- alternating series

- Summation notation
- definition
- sigma notation
- evaluate a summation
- expand a summation

- Arithmetic series
- definition
- formula

- Geometric series
- definition
- formula

- Infinite geometric series
- definition
- partial sums
- formula

- Summary of sequence and series

- Sequences or Progressions
- Arithmetic sequences
- define sequence
- definition
- general term

- Geometric sequences
- definition
- general term

- Fibonacci-type sequences
- definition
- general term

- Procedure for classifying sequences

An** arithmetic sequence **is a sequence whose consecutive terms differ … See the whole entry

- Terminology
- types of installments
- closed-end loan
- open- end loan

- ways of calculating interest
- add-on interest
- amortization

- types of installments
- . Add-on interest
- installment loan formulas
- buying a car

- Annual percentage rate (APR)
- APR formula
- compare 0% financing with APR

- . Open-end

- Amount of simple interest
- interest/interest rate
- principal/present value
- time
- simple interest formula

- Future value
- Interest for part of a year
- exact interest
- ordinary interest
- time ordinary interest
- future value formula (simple interest)

- Compounding interest
- compound interest
- compounding annual