{"id":3122,"date":"2021-06-25T13:34:39","date_gmt":"2021-06-25T17:34:39","guid":{"rendered":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/?post_type=chapter&#038;p=3122"},"modified":"2021-06-29T19:00:25","modified_gmt":"2021-06-29T23:00:25","slug":"videos-equations-of-value-and-compound-interest","status":"web-only","type":"chapter","link":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/chapter\/videos-equations-of-value-and-compound-interest\/","title":{"raw":"Videos: Equations of Value and Compound Interest","rendered":"Videos: Equations of Value and Compound Interest"},"content":{"raw":"<h2>What is an Equation of Value?<\/h2>\r\nA recap of what we did with simple Interest:\r\n\r\n[embed]https:\/\/youtu.be\/uSkxMR6bbpA[\/embed]\r\n&nbsp;\r\n\r\n\r\n\r\nToday, you take out a $5000 loan at 10% compounded quarterly, which is to be repaid with two equal payments at the end of the first year and at the end of the second year.\r\n<ol type=\"a\">\r\n \t<li>Find the size of the payments.<\/li>\r\n \t<li>How much interest will be paid?<\/li>\r\n<\/ol>\r\n&nbsp;\r\n\r\n[embed]https:\/\/youtu.be\/zAvDZBQuhSQ[\/embed]\r\n&nbsp;\r\n\r\n\r\nYou borrowed $3,000 from your line of credit 8 months ago and a further $5,000 three months ago.  You arrange with the bank to pay off the line of credit with 2 payments.  The first payment, 6 months from today, will be twice as large as the second payment made one year from today.  The bank charges you 9% interest, compounded monthly.  Suggested focal Date: <strong>6 months from today<\/strong>.\r\n\r\n(a)   Find the size of each payment.\r\n\r\n(b)   How much interest did you pay?\r\n&nbsp;\r\n\r\n[embed]https:\/\/youtu.be\/h3412L0ZgKY[\/embed]","rendered":"<h2>What is an Equation of Value?<\/h2>\n<p>A recap of what we did with simple Interest:<\/p>\n<p><iframe loading=\"lazy\" id=\"oembed-1\" title=\"Business Math Lesson 11: Equations of Value, part 1\" width=\"500\" height=\"375\" src=\"https:\/\/www.youtube.com\/embed\/uSkxMR6bbpA?feature=oembed&#38;rel=0\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><br \/>\n&nbsp;<\/p>\n<p>Today, you take out a $5000 loan at 10% compounded quarterly, which is to be repaid with two equal payments at the end of the first year and at the end of the second year.<\/p>\n<ol type=\"a\">\n<li>Find the size of the payments.<\/li>\n<li>How much interest will be paid?<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p><iframe loading=\"lazy\" id=\"oembed-2\" title=\"Business Math Lesson 11: Equations of Value, part 3\" width=\"500\" height=\"375\" src=\"https:\/\/www.youtube.com\/embed\/zAvDZBQuhSQ?feature=oembed&#38;rel=0\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><br \/>\n&nbsp;<\/p>\n<p>You borrowed $3,000 from your line of credit 8 months ago and a further $5,000 three months ago.  You arrange with the bank to pay off the line of credit with 2 payments.  The first payment, 6 months from today, will be twice as large as the second payment made one year from today.  The bank charges you 9% interest, compounded monthly.  Suggested focal Date: <strong>6 months from today<\/strong>.<\/p>\n<p>(a)   Find the size of each payment.<\/p>\n<p>(b)   How much interest did you pay?<br \/>\n&nbsp;<\/p>\n<p><iframe loading=\"lazy\" id=\"oembed-3\" title=\"Business Math Lesson 11: Equations of Value, part 5\" width=\"500\" height=\"375\" src=\"https:\/\/www.youtube.com\/embed\/h3412L0ZgKY?feature=oembed&#38;rel=0\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n","protected":false},"author":883,"menu_order":9,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-3122","chapter","type-chapter","status-web-only","hentry"],"part":44,"_links":{"self":[{"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/pressbooks\/v2\/chapters\/3122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/wp\/v2\/users\/883"}],"version-history":[{"count":2,"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/pressbooks\/v2\/chapters\/3122\/revisions"}],"predecessor-version":[{"id":3124,"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/pressbooks\/v2\/chapters\/3122\/revisions\/3124"}],"part":[{"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/pressbooks\/v2\/parts\/44"}],"metadata":[{"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/pressbooks\/v2\/chapters\/3122\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/wp\/v2\/media?parent=3122"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/pressbooks\/v2\/chapter-type?post=3122"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/wp\/v2\/contributor?post=3122"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/businessmathematics\/wp-json\/wp\/v2\/license?post=3122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}