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➡️ Download my FREE 6 Week Exam FM Studying Plan: https://www.jkmathematics.com/studyfm... In this video we learn about drop payments and balloon payments as they relate to financial mathematics and solving problems for the actuarial exam FM. We discuss what drop and balloon payments are conceptually, as well as how to work with them in present value and future value scenarios. 🌐 My Website: https://www.jkmathematics.com 🖥️ Membership Site (bonus content): https://www.jkmathematics.com/plus 🗓️ Book Time With Me: https://www.jkmathematics.com/booktime ⭐️ Support Me on Patreon: / jkmath Video Chapters: 0:00 What are Balloon & Drop Payments? 3:01 Visualizing on a Timeline 5:30 FV/PV involving Balloon Payment 12:20 FV/PV involving Drop Payment 15:27 Example Problem 📺 Check out more of my Financial Mathematics Videos: • Financial Mathematics ⚡️Math Products I Recommend⚡️ Graphing Calculator: https://amzn.to/3XuUcB9 Non-Graphing Calculator: https://amzn.to/46hHJ7E Financial Calculator: https://amzn.to/3CRe9s4 Graphing Paper: https://amzn.to/46mAfAr College Rule Paper: https://amzn.to/3NOJaTN My Favorite Pencil: https://amzn.to/3NOFMIB My Favorite Erasers: https://amzn.to/3PumUQB Calculus Workbook: https://amzn.to/3r8SnNP ⚡️Textbooks I Use⚡️ Calculus 1 & 2: https://amzn.to/3PzfI5F Calculus 3: https://amzn.to/46rSy76 Financial Mathematics: https://amzn.to/3ppIVW0 ⚡️My Recording Equipment⚡️ iPad Air: https://amzn.to/3phEug1 Apple Pencil (Gen 2): https://amzn.to/3Nl45MM Tablet Desk Stand: https://amzn.to/4420rPh External Hardrive: https://amzn.to/44pkEyh (Commissions earned on qualifying purchases) Follow me on Social Media! / jkmathematics Thanks for watching! Any questions? Feedback? Leave a comment! - Josh from JK Mathematics Disclaimer: Please note that some of the links associated with the videos on my channel may generate affiliate commissions on my behalf. As an amazon associate, I earn from qualifying purchases that you may make through such affiliate links.