3.5 General Compounding
Most financial institutions compound interest more than once a year. For instance, you may have an account that will return your interest to the account at the end of each month (12 times a year). To compound more than once a year both the rate and the time in the annual compounding formula need to change. We'll call the resulting formula the general compounding formula. After successfully completing these videos, you'll be able to apply the general compounding formula. This material is covered on pages 119-121 in our text.
An introduction to general compounding
General compounding and future value
General compounding and present value
3.6 Preparing to Purchase a Property
We’ll finish this unit working with some of the skills you’ll need when you purchase your first property. These skills are also needed to successfully complete project 4, the Buying a Property project. This material is covered on pages 123-129 in our text.
Working with a federal tax table
Working with a state tax table
Finding a debt to income ratio
Working with a mortgage calculator
Introducing PMI and your total monthly payment
Finding a total monthly payment