Wetzel

Math 155

8.4 – Annuities, Stocks, and Bonds

Annuities –

            def.:      a series of equal payments made at equal time periods like a retirement fund.  The value of the annuity is the money paid into the account and any                           interest earned.

            Value of an Annuity –

            Ex.:  p.477 #4, 6

Stocks –

            def.:      shares of ownership in a company.  Money is made by dividends and/or by capital gain.  When a company shares its profits with stockholders, the                         money they pay each shareholder is called a dividend.  Capital gain is the money earned from selling a stock for more than you paid for it.

            Ex.:  p.478 #20

Bonds –

            def.:      a way of loaning money to a company is by buying a bond.  The company promises to payback the full amount borrowed, called

                         the face value, with interest.

HW:    p.477 #1-9odd, 19