MATH3

profilealiha.6

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. Simple Interest: Laura needed to borrow $3,000 to pay off a gambling debt.  Her local bank offered her a simple interest $3,000 loan with a 6-month term and told her she would pay $247 in interest.
    1. Calculate the annual interest rate Laura 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.
  2. Annuity Payment: Richard is saving money for a down payment on an expensive guitar. He needs $1,500 in 9 months to make his down payment and is saving money in an annuity yielding an annual interest rate of 6% compounded monthly. If the annuity requires that Richard make monthly investments, what annuity payment must Richard make to save enough for his guitar down payment?
  3. Mortgage Financing: Juanita purchased a $189,000 home with a 15-year term, 4.5% annual rate mortgage. At closing she paid an $84,000 down payment. Calculate Samantha’s monthly mortgage payment.

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.
    • 8 years ago
    • 12
    Answer(1)

    Purchase the answer to view it

    blurred-text
    • attachment
      introduction_to_simple_compound_and_annuity.docx