Math Homework

Option #1: Consumer Mathematics #1

Write a paper that adheres to the Written Assignment Requirements in the CSU-Global Guide to Writing and APA Requirements. In addition, the items noted in the Good Writing Tips section should be observed.

Your paper should contain a title page, an introduction, a body, a conclusion, and possibly a list of references. The introduction should provide background information about your topic, and it should state what your paper will address. We often state the main idea or purpose of the paper in what is termed a thesis statement.

The body of your paper details your methodology, findings, and/or the results of analysis. APA requires that tables, figures, and calculations/formulas used in your paper appear in the paper body.

Your conclusion often restates your answers to the questions posed in the problem and sometimes does so with a broader perspective in mind. The conclusion is where we also state personal experiences and possibly the “take-home” messages associated with our work. As with many written assignments, in-text citations and a reference page are often included.

The questions asked in this assignment involve calculations related to simple interest, compound interest, annuities, or mortgages. Your introduction should provide background information about these topics, describing their use and importance.

The body of your paper should explain how you solved the assigned problems, showing your detailed calculations. Unfortunately, writing equations in Word is not simple. It can be done either by using the Word equation editor, or you may simply want to cut/paste the equations provided for you in the Consumer Math Equations document (linked at the bottom of the page). This document contains interest and other financial equations formatted using the Word equation editor as well as instructions for using the equation editor.  Another option is to write your equations by hand and include JPG images in the appropriate places in your paper.

Each of the problems you will be solving requires using your calculator to compute solve a financial equation. In order to calculate answers correctly, it is important that you follow several important rules: ў

1. Follow the Order of Operations to solve complicated problems.
2. Attempt to solve equations without writing down intermediate values. If you must write down values, keep as many digits or decimal places as you can. Better yet, use the memory locations in your calculator to store intermediate values.
3. NEVER round intermediate calculations. Only round the final answer.

Several excellent videos that describe how to solve algebraic expressions using the Order of Operations Rules are available at mathispower4u.yolasite.com. After reaching the Mathispower4u site, click on the Algebra 1 Video Library link and find the Order of Operations section in the first column. The first twelve short videos will give you an excellent overview. The next twelve may also be helpful.

In your paper, answer the following questions:

Question #1 – Simple Interest
Marisol needed to borrow $2,000 to pay off a high-interest credit card debt.  Her local bank offered her a simple interest $2,000 loan with a 9-month term and told her she would pay $157.50 in interest.

1. Calculate the annual interest rate Marisol is being offered.
2. If the bank loan is structured as an installment loan, calculate the total installment price and the monthly payment for the loan.

Question #2 – Compound Interest
Anna decided to tour Europe after finishing high school. To finance her trip, she borrowed $2,500 from her credit union, obtaining a loan with a 6% annual interest rate and quarterly compounding. Ann paid $2,816 when payment for the loan was due. What was the term of Anna’s loan?

Question #3 – Mortgage Financing
Josh and Leo found a home they liked costing $210,000. A mortgage company was willing to finance the home at a 4.75% rate and 30-year term if they could make a 20% down payment, allowing them to avoid a monthly private mortgage insurance charge.  Calculate the down payment and monthly mortgage payment that Josh and Leo must pay.