Page 66 - The Ontario Curriculum, Grades 11 and 12: Mathematics, 2007

GrGraardadedee111,,,Uniiversity/CollegePrrerepaarrarataittoiiononn
THE ONTARIO CURRICULUM, GRADES 11 AND 12 | Mathematics
64
3.6 determine, through investigation using technology (e.g., the TVM Solver on a graph- ing calculator, online tools), the effects of changing the conditions (i.e., the payments, the frequency of the payments, the interest rate, the compounding period) of ordinary simple annuities (i.e., annuities in which pay- ments are made at the end of each period, and the compounding period and the payment period are the same) (e.g., long-term savings plans, loans)
Sample problem: Compare the amounts at age 65 that would result from making an annual deposit of $1000 starting at age 20, or from making an annual deposit of $3000 starting at age 50, to an RRSP that earns 6% interest per annum, compounded annually. What is the total of the deposits in each situation?
3.7 solve problems, using technology (e.g., scien- tific calculator, spreadsheet, graphing calcula- tor), that involve the amount, the present value, and the regular payment of an ordinary simple annuity (e.g., calculate the total interest paid over the life of a loan, using a spreadsheet, and compare the total interest with the original principal of the loan)