Chapter 21 Savings Model Videos and Lecture Notes

Reading Assignment Video Lecture Notes
21.1 Arithmetic Growth
and Simple Interest
pages 767 - 769
Section 21.1
Section 21.1
Lecture notes
21.2 Geometric Growth
and Compound Interest
pages 769 - 777
Section 21.2
Section 21.2
Lecture notes
21.3 A Limit to Compounding
pages 778 - 780
Section 21.3
Section 21.3
Lecture notes
21.4 A Model for Saving
pages 780 - 784
Section 21.4
Section 21.4
Lecture notes
21.5 Present Value
and Inflation
pages 784 - 788
Section 21.5
Section 21.5
Lecture notes

Chapter 21 Objectives (Skills)

  • Apply the simple interest formula to calculate the balance of a savings account.
  • Apply the compound interest formula to calculate the balance of a savings account.
  • Describe the difference between arithmetic and geometric growth.
  • Calculate the APY for a compound interest account.
  • Calculate the APY for a compound interest account.
  • Use the savings formula or payment formula to determine required deposits into a sinking fund.
  • Calculate depreciation of a financial asset, given a negative growth rate.
  • Use the Consumer Price Index to find the current cost of goods.

Quiz 6 Chapter 21 (Sakai-> Tests & Quizzes)

  • The quiz for Chapter 21 will be available from 12:00am June 15 - 11:55pm June 19.
  • The quiz will consist of 10 multiple choice questions.
  • You will have a maximum of four hours to complete the quiz.
  • You will be allow two tries. The computer will accept the best score.
  • Failure to take the quiz by 11:55pm June 19 will be given a zero. No exceptions!

Homework Assignments (Sakai -> Assignments)

  • Chapter 21
    pages 794 - 800 Problems 3, 11, 12, 24, 56
    Due by 11:55pm Friday June 19.
  • Use Assignments tool to submit homework.
  • Homework help.
    • Problem 3. Carefully read Section 21.1 before responding to this exercise.
    • Problems 11 and 12. Carefully read Section 21.2 before responding to these exercises.
    • Problem 24. Carefully read Section 21.3 before responding to this exercise.
    • Problem 56. Carefully read Section 21.5 before responding to this exercises.
  • I will NOT accept homework with answers only.

Companion Website

  • Go to the companion website and navigate to applet exercises for chapter 21 and try the applet Saving for Retirement
  • In the companion website navigate to Video Clips for chapter 21.
    • Watch the movie The Mathematics of Geometric Growth
    • Watch the movie A Model for Accumulation
    • Watch the movie Exponential Decay
  • In the companion website try online quiz for chapter 21.

Chapter worksheets (Sakai -> Assignments)

Each worksheet will have 10 questions (each worth 1 point). The worksheets are designed to help you understand material. The worksheets are downloadable from the Assignment tool within Sakai as a Microsoft Word (or OpenOffice) and also as a pdf file. You can write on the worksheets and upload your answers or (similar to homework submissions) take a digital picture of your handwritten assignment with a camera or smart phone. All worksheet answers must be submitted within Sakai. The due dates for the worksheets are two days before the due date for homework assignments, so that you can get feedback on problems before submitting your homework and doing your quizzes. DO NOT SUBMIT ASSIGNMENTS VIA EMAILS OR FAXES! I will not accept them! Do not ask to submit late worksheets.

  • Due by 11:55 pm Wednesday June 17.
  • Use the Assignments tool to submit worksheet.

Discussion Topic (Sakai-> Forums)

  • Should you stock up on “forever” stamps? In 2007 the U.S. Postal Service began selling such stamps, which will suffice for first-class postage at any time in the future, even when rates rise. On Jan. 26, 2014 the U.S. Postal Service increased the price of these stamps to $0.49. Would it be a good investment to buy a “lifetime supply” of them? To render your judgment, compare the historic increases postal rates (see with the CPI Table (Table 21.5). For example, you could convert postal rates at each of the dates of change to the cost in today's dollars, then see if there appears to be a recent trend that you can project into the future.
  • Discussion for Chapter 21 will open at 12:00 am Monday June 15.
  • You are required to participate in the discussion boards.
  • Discussion topic will end at 11:55 pm Friday June 19.
  • See the syllabus on the grading rubric for discussions.

James Baglama

Texting Number: (401) 268-7160
Office hours: by appointment
Office: Lippitt Hall 200D
Office Phone: (401) 874-4412

For All Practical Purposes

The required textbook, "For All Practical Purposes", 9th edition by COMAP, Publisher W.H. Freeman. Do NOT use an older edition. All students must have either a phyiscal copy of the textbook or an ebook.Click on the textbook above to go to the ebook.

For All Practical Purposes Campanion Site

The required textbook, The textbook "For All Practical Purposes", 9th edition by COMAP,Publisher W.H. Freeman has a campanion website. The campanion website contains a lot helpful material,e.g. Java Applets, falshcards, practice quizzes. The site can be accessed via the link Campanion or click on the picture above to go to the campanion website.