Errata
Understanding the Mathematics of Personal Finance
Chapter 1
Page 9, bottommost equation:
Problems:
Chapter 2
At the top of the page,
with the same correction in footnote (2) at the bottom of the page.
The solution to problem 5 on page 211 shows the principal to be $1,000.00. The principal
as stated in the problem is $10,000.00. The rest of the solution (pages 211-
Chapter 3
The solution to problem 1b on page 213 is $2,084.18, not $2,048.18
Chapter 6
The summary information at the bottom of Table 6.3 on page 79 should read:
ADB: $157.54 $483.54
Interest: $1.33 $9.14
Balance due: $38.87 $492.68
Total Due: $531.55
Problem 1(b) on page 84 should read “.... receives your payment of $100 on the second day of the next ...” This change is already reflected in the solution on page 218.
New credit card laws (early 2010) have affected a bank’s ability to direct payments to the lowest interest part of the balance (e.g. to cash advances ahead of purchases). Please read credit card contracts and statements carefully to see what applies to a specific card. The calculations presented in this chapter are still correct as shown, but the default payment allocation may now be different.
Chapter 10
The solution to problem 2 on page 227 should be
Year q l d Cost($)
PV($)
______________________________________________________
1 0.3333 100,000 33,333 33,333 32,686
2
1 66,667 66,667 66,667 62,858
The numbers above in italics have been corrected.