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MATH 105 Final Exam:

You may take as long as you like on this exam, but you must complete and submit to your assignment folder by Week 8.

· The online text will be a valuable resource as you work on these problems.

· Please submit your work in the LEO assignment folder in one of these ways:

· typed into the Word copy of the problem set, using Word’s equation editor and saved as a single file

· typed using an equation editor into a new blank document and saved as a single file

· neatly handwritten, scanned, and saved as a single file

· You MUST show all of your work to receive full credit. If you have questions about showing work, please ask.

· The Final Exam is open book and open notes. You may refer to your textbook, notes, and online classroom materials, but you may not consult with anyone in person or online. You may not use any online service to solve any of the problems.

The following statement must be signed and dated:

I have completed this Final Assessment myself, working independently and not consulting anyone except the instructor. I have neither given nor received help on this problem set.

Name: Date

Maria and John have been married for 2 years and are trying to start a family.

They have been renting a small apartment and decide they want to purchase a house.

They find one that is selling for $450,000. They have been advised to make a 20% down payment.

1. If they make a 20% down payment on a 20-year mortgage at 3.75%,

a. How much will they need for the down payment?

b. How much will their monthly payment be for the principal and interest?

c. How much interest will have been paid if they take the full 20 years to pay off the mortgage?

2. If they use additional savings of $10,000, would it be more advantageous for them to add this amount to the down payment on the house or invest the $10,000 in a bank account that pays 3% interest compounded semi-annually? They would keep the money in the account for the 20 years and not add any additional funds to that account. Explain fully.

3. If they find another mortgage offer of 3.25% for 15 years, would that be a better choice with the 20% down payment? Explain fully.

4. They decide to start saving for retirement. Mary has found an IRA that pays 3% compounded monthly. John has found one that pays 4% compounded semi-annually.

Which is the better investment at the end of 25 years for a $200 deposit each month (when compounded monthly) or $1200 every six months (when compounded semi-annually) if the interest rates remain the same for 25 years? Explain fully.

5. Before the baby is born, John and Mary want to take a vacation to Gatlinburg, TN. They can travel in January or August. They do some research about the weather in January and in August in 2018. Using the information below answer the following questions:

a. Which month had the larger range of temperatures? Explain

b. In which month was the difference between the mean high temperature and the mean low temperature smaller? Explain.

c. In which month was the median precipitation larger? Explain.

d. Prepare one frequency distribution with 5 intervals for the low temperatures in January and one frequency distribution with 5 intervals for the high temperatures in August.

e. John wants to visit in January. Mary wants to visit in August. List 3 pros and 3 cons based on the information below that each would list to support their choice of month to visit. Support each item you list with data.