5-4W\Y. Understanding annuities. Home mortgage payments are an annuity, as are any loans where the payments remain constant. In effect, if you can understand annuities, you'll understand how mortgages and other loans are calculated. What would your monthly loan payments be ifyou bought a new 60-inch television for $3,400? You put $300 down, and plan to finance the loan over 36 months at 12 percent interest. In addition, when you bought the new television, you received $100 for the trade-in of your old set. Use an online financial caleulatm'
(www.calcbuilder.com/cgi-binicalcs/AUT5.cgiIKiplingel·) to determine your answer.
5-5WW College Savings Planning. Try out Great Western Bank's College Savings Planner (www.greatwestembank.comlCollcge.html). Enter data in every field except for the monthly savings. Let the interest rate vary and see the effect on how much you must save. What did you learn from this? How does the interest level you can earn affect how much you must save?