MIS 111 Lecture Notes - Lecture 9: United States Dollar, Interest, Money Supply

• School: University of Arizona
• Department: Management Info Systems Main
• Course: MIS 111
• Professor: W.Neumann, M.Patton

Document Summary

Lo 2-1 explain what gives paper currency value and how the federal reserve banks manage its distribution. Lo 2-2 differentiate between simple and compound interest rates and calculate annual percentage yields and the value of paying yourself first. Lo 2-3 calculate the future and present value of lump sums and annuities in order to know what to put aside to meet your personal financial goals. The mint makes it first, it is up to you to make it last ~ errol. What is its competition: us debt clock. The most powerful force in the universe is compound interest ~ albert einstein. ,000 + (1,000 x . 12) = ,120 resulting balance on dec. 31. 12% 4 time periods = 3% per quarter. ,092. 73 + (1,092. 73 x . 03) = ,125. 51 resulting balance on dec. 31. Annual percentage yield (apy: apy = (1 + r/n)n 1, r = stated annual interest rate, n = number of times compounded/year.