MATH HW Option 1
Question #1 – Simple Interest
Roger borrowed money to finance a new boat. The bank offered Jack $28,000 of the $35,000. To make up the difference, Jack secured a small personal, simple interest loan. Jack’s loan was structured as an installment loan that required him to pay $297.50/month for 30 months. Calculate the amount financed, total installment price, the finance charge, and the interest rate.
Question #2 – Annuity Payment
James is saving money to open a corner store. He needs $15,000 in two years to make his down payment and is investing in an annuity yielding an annual interest rate of 7% compounded monthly. If the annuity requires that James make monthly investments, what annuity payment must James make to save $15,000?
Question #3 – Mortgage Financing
Peter and Rachael 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 Peter and Rachael must pay.
- Your paper should be 2-3 pages in length and 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 answered the question or solved the problem, and for each question, show all steps involved.
- 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.