math thinking critical 3

Option #1: Consumer Mathematics #1

Write a report that answers the following questions and meet the list of requirements that follows.

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

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.

The questions 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.

Questions:

1. Compound Interest: Blaine bought hunting equipment for $4,800. He borrowed money from his credit union for the purchase, obtaining a loan with a 10% annual interest rate, monthly compounding, and a 3-year term. If Blaine’s loan is structured as an installment loan, calculate his total installment cost, his monthly payment, and his total finance charge (interest).
2. Annuity Payment: Chris is saving money for a down payment on a racing bicycle. He needs $2,000 in one year to make his down payment and is investing in an annuity yielding an annual interest rate of 4% compounded monthly. If the annuity requires that Chris make monthly investments, what annuity payment must Chris make to save enough for his bicycle down payment?
3. Mortgage Financing: Jack and Jill purchased a home costing $269,000. A mortgage company financed the home at a 5.5% rate and 30-year term, requiring that they make a 15% down payment. Calculate the down payment and monthly mortgage payment that Jack and Jill must pay.

Requirements:

• Your paper should be 2-3 pages in length and should cite and integrate at least one credible outside source.
• Include a title page, an introduction, a body, a conclusion, and a Reference list.
• The introduction should summarize the problem and state what approach and method will be applied to solve it.
• The body of your paper should answer the questions posed in the problem, explain how you approached and approached and answered the question or solved the problem, and for each question, show all steps involved. Writing equations in Word can be done (a) by using the Word equation editor, (b) or you may want to simply cut/paste the equations provided for you in theConsumer Math Equations document. 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 (c) to write your equations by hand and paste images (in JPG or other compressed format) in the appropriate places in your paper.
• The conclusion should summarize your findings and what you have determined from the data and your analysis, with a broader or personal perspective in mind when applicable.
• As with all written assignments, provide in-text citations and a reference page.
• Include any tables of data or calculations, calculated values, and/or graphs associated with this problem in the body of your assignment.
• Document formatting, citations, and style should conform to the CSU-Global Guide to Writing and APA Requirements. In addition, the items noted in the “Good WritingTips”section should be observed. Refer to the document Calculating Tree Height as an example of how the paper is to be formatted.