Chapter 13: Key Concepts Summary

Key Concept Summary

13.1: Calculating Interest and Principal Components 

  • The concept of amortization
  • How to calculate interest and principal components for a single payment
  • How to calculate interest and principal components for a series of payments

13.2: Calculating the Final Payment

  • Understanding why the final payment is different than all other payments
  • How to calculate the exact amount of the final payment including both interest and principal components
  • How to calculate interest and principal components involving the final payment

13.3: Amortization Schedules 

  • The development of a complete amortization schedule
  • The development of a complete amortization schedule due
  • The development of a partial amortization schedule

13.4: Special Application: Mortgages

  • The language and concepts involved in mortgages
  • What determines the mortgage interest rate
  • How to calculate the mortgage payment
  • ¬†The procedure involved in renewing a mortgage

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Business Math: A Step-by-Step Handbook Abridged Copyright © 2022 by Sanja Krajisnik; Carol Leppinen; and Jelena Loncar-Vines is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.

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