Cash flow and amortisation

Chapter 70 of 19 strong

RESTS ONIdentify the initial value and fixed coefficients in a first-order recurrenceCH 6 Express a time span as the matching number of compounding periodsCH 6Convert an annual rate to a compounding-period rateFOUNDATIONSIterate a recurrence relation to generate termsCH 9 Distinguish the initial value, future value and changeCH 6 Match recurrence, explicit rule, table and discrete graph representationsCH 6Graph an arithmetic sequence as discrete pointsFOUNDATIONSPercentage of a quantityCH 9Tabulate a sequence by term number and term valueFOUNDATIONSSolve a one-step linear equationFOUNDATIONSName terms using the chapter's zero-indexed subscript conventionFOUNDATIONS

Cash-flow recurrence models

Interpreting cash-flow models

Amortisation tables

Final payments and totals

Time value of money

Time value of money inverses

Changed cash-flow conditions

Interest-only loans

Perpetuities

Construct an end-of-period cash-flow recurrence from an initial balance, nominal annual rate, period frequency and regular addition, repayment or withdrawal; choose +D for money added to the balance and -D for money removed

Not started yet

Practise this

RESTS ON

Identify the initial value and fixed coefficients in a first-order recurrenceNot startedExpress a time span as the matching number of compounding periodsNot startedConvert an annual rate to a compounding-period rateNot started

UNLOCKS

Determine successive balances and a named balance by applying interest and then the periodic cash flow, carrying the exact rational value between periodsRecover the initial value, period rate, nominal annual rate, cash-flow amount, cash-flow direction and period unit from a recurrence or short balance tableMap a financial situation to the generic fields number of payments, nominal annual rate, present value, periodic payment, future value, payments per year and compounding periods per year, using one consistent cash-flow sign conventionRecognise and model the equilibrium case D=(R-1)P, so an interest-only loan or perpetuity has the same balance after every end-of-period cash flow