Section 5.5 Amortization

Picture of a house [CC BY-SA 3.0 (]

At some time in your life, you will make a large purchase such as a home or car. You may need to borrow money to make this purchase and pay back the loan with a series of regular payments. This process is called amortization.

Our goals in this section are to 

  • Calculate the payment on an amortized loan.
  • Construct an amortization schedule.
  • Calculate the present value of an annuity.

Use the workbook and videos below to help you accomplish these objectives.

Section 5.5 Workbook (PDF)  11/2/19 

Practice Solutions