Consumer Math Essay Example | Topics and Well Written Essays - 250 words

Consumer Math - Essay ExampleThe rate of the annuity after five years provide be the sum of all the deposits plus the sake earned over a period of five years.Another example where an annuity can be applied in ones personal finances is when one plans for ones hideaway fund. An man-to-man may decide to put in $2,000 at the end of each year for the succeeding(prenominal) 20 years into an IRA. If the IRA promises a return of 12 percent per year compounded annually, the respective(prenominal) will get a certain amount from the IRA after 20 years.In making investments, annuities are very relevant. Several options are presented to individuals who want to make an investment. One such example is decision making whether to make a lump sum deposit or a periodic deposit for several(prenominal) years. If the interest rates are equal and the maturity date is the same, one has to decide which alternative will be more profitable.The examples presented above are just some applications of consu mer math, specifically annuities. Indeed, it is essential for every individual to understand the concepts covered by consumer math because it has a huge impact on ones personal finances.Chatham Central Schools. (n.d.). Consumer math Annuities and the TVM solver. Retrieved May 10, 2012, from chathamcentralschools.com