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Work Program

## Chapter 8: Annuities and loan repayments

FM5: Financial mathematics
SkillSHEETS, WorkSHEETS,
GC tips, Investigations, Test yourself, Topic Tests Technology applications Prescribed skills, knowledge and
Section Content 10 Quick Questions (CD-ROM) (CD-ROM) understanding
Are you ready? SkillSHEETs (page 238)
(page 238) 8.1: Finding values of n and r
in financial formulas
8.2: Calculating simple interest
8.3: Calculating compound
interest
Future value of an Annuities 10 Quick Questions 1 SkillSHEET 8.1: Finding values Computer Application 1:  recognising that an annuity is
annuity (page 239)  calculations using (page 245) of n and r in financial Annuity calculator a form of investment
WE 1, 2, 3, 4, 5 the compound formulas (page 242) (page 244) involving periodical, equal
Ex 8A Future value interest formula SkillSHEET 8.2: Calculating contributions to an account,
of an annuity  using the formula to simple interest (page 242) with interest compounding at
(page 242) calculate future SkillSHEET 8.3: Calculating the conclusion of each period
Computer values compound interest  calculating the future value
application 1:  calculating annual (page 242) (A) of an annuity (or the
Annuity calculator contributions given contribution per period)
(page 244) future value using:
 calculating annuities  1  r  n  1 
 
A M 

 r 

where M = contribution per
period, paid at the end of the
period
Present value of an Present value WorkSHEET 8.1 (page 249)  calculating the present value
annuity (page 246)  calculating present (N) of an annuity (or the
WE 6, 7, 8 value given the contribution per period)
Ex 8B Present value future value by use using:
of an annuity of the formula
 1  r   1 
 n
(page 248) 
N  M n  or
 r 1  r  
 
2

A
N
1  r  n
Future and present Value tables 10 Quick Questions 2 SkillSHEET 8.4: Reading Computer Application 2:  using tables to solve problems
value tables  creating and using (page 254) financial tables (page 253) Future value of \$1 involving annuities
(page 250) spreadsheets to (page 250)
Computer generate a future Computer Application 3:
application 2: Future value table and a Present value table
value of \$1 present value table (page 251)
(page 250)  using tables to
WE 9, 10 calculate future and
Computer present values
application 3:
Present value table
(page 251)
Ex 8C Future and
present value tables
(page 253)
Loan repayments Loan repayments Investigation: Types of WorkSHEET 8.2 (page 259) Word: Annuities, loans,  using the present value formula for
(page 255)  calculating the time loan arrangements graphs (page 259) annuities to calculate loan
WE 11, 12, 13 to repay a loan by (page 259) Computer Application 4: instalments, and hence the total
Ex 8D Loan guess and Graphs of annuities and amount paid over the loan term
repayments refinement loans (page 259)  investigating various
(page 257)  calculating the total processes for repayment of
Computer amount to be repaid loans
application 4: and the total interest  calculating the fees and
Graphs of annuities charges which apply to
and loans (page 259) different options for
borrowing money in order to
make a purchase
Summary (page 260) ‘Test yourself’ multiple choice
Chapter review questions (page 264)
(page 261) Topic tests (2)
Practice examination
questions (page 263)