**Problems 1-3**

There are many problems throughout the text labeled IN YOUR OWN WORDS. Just relax; do not be afraid to give your opinion. For the most part, these questions do not have “right” or “wrong” answers. You should spend about five minutes in answering each of these questions.
Problem 4

For a proper understanding of this chapter, it is essential that you know the meanings of the variables used in the various formulas. Since this is a review section, now is a good time to make sure you know these values before continuing. You should be able to answer this question from memory. If you can’t, then study the meanings until you can state them from memory.
Problems 5-12

Identify the variables. Substitute these values into the present value of an annuity formula. If you have a programmable calculator, now would be a good time to enter the present value of an annuity problem before doing these problems. If you do program a calculator, be sure to check to see you have programmed it correctly by working Example 1.
Problems 13-20

Identify the variables, and substitute those values into the amortization formula. If you have a programmable calculator, now would be a good time to write a program to calculate amortization problems before working these problems. Be sure to check your accuracy by working Example 4.
Problems 21-32

These are present value of an annuity problems; substitute into the formula or use a calculator program. See Example 1.
Problems 33-44

Classify the financial type and then substitute the variables into the appropriate formula or use a calculator program.
Problems 45-46

Use the amortization formula for both 15 and 30 years, and then multiply the monthly payment (rounded to the nearest cent) times the number of payments for each loan. Finally, compare the total amounts to find the difference in the amount of interest paid for each loan.
Problems 47-50

Classify the financial type and substitute the variables into the appropriate formula or use a calculator program.
### Note: Homework Hints are given only for the Level 1 and Level 2 problems.

However, as you go through the book be sure you look at all the examples in the text. If you need hints for the Level 3 problems, check some sources for help on the internet (see the LINKS for that particular section. As a last resort, you can call the author at (707) 829-0606.

On the other hand, the problems designated “Problem Solving” generally require techniques that do not have textbook examples.

There are many sources for homework help on the internet.

**Algebra.help**

Here is a site where technology meets mathematics. You can search a particular topic or choose lessons, calculators, worksheets for extra practice or other resources.

**http://www.algebrahelp.com/**

**Ask Dr. Math**

Dr. Math is a registered trademark. This is an excellent site at which you can search to see if your question has been previously asked, or you can send your question directly to Dr. Math to receive an answer.

**http://mathforum.org/dr.math/**

**Quick Math**

This site provides online graphing calculators. This is especially useful if you do not have your own calculator.

**http://www.quickmath.com/**

**The Math Forum** @ Drexel

This site provides an internet mathematics library that can help if you need extra help. For additional homework help at this site, click one of the links in the right-hand column.

**http://mathforum.org/**

There are many problems throughout the text labeled IN YOUR OWN WORDS. Just relax; do not be afraid to give your opinion. For the most part, these questions do not have “right” or “wrong” answers. You should spend about five minutes in answering each of these questions.

For a proper understanding of this chapter, it is essential that you know the meanings of the variables used in the various formulas. Since this is a review section, now is a good time to make sure you know these values before continuing. You should be able to answer this question from memory. If you can’t, then study the meanings until you can state them from memory.

Identify the variables. Substitute these values into the present value of an annuity formula. If you have a programmable calculator, now would be a good time to enter the present value of an annuity problem before doing these problems. If you do program a calculator, be sure to check to see you have programmed it correctly by working Example 1.

Identify the variables, and substitute those values into the amortization formula. If you have a programmable calculator, now would be a good time to write a program to calculate amortization problems before working these problems. Be sure to check your accuracy by working Example 4.

These are present value of an annuity problems; substitute into the formula or use a calculator program. See Example 1.

Classify the financial type and then substitute the variables into the appropriate formula or use a calculator program.

Use the amortization formula for both 15 and 30 years, and then multiply the monthly payment (rounded to the nearest cent) times the number of payments for each loan. Finally, compare the total amounts to find the difference in the amount of interest paid for each loan.

Classify the financial type and substitute the variables into the appropriate formula or use a calculator program.