Reference no: EM131336710

Consumer Mathematics

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.

Questions:

1. Simple Interest: Kea borrowed $500 at a simple interest rate of 5%. At the end of the loan term she owed $650. What was the term of her loan?
2. Compound Interest: Sharon borrowed $34,500 to finance her daughter's wedding, obtaining a loan with a 6¼% annual interest rate, annual compounding, and a 5-year term. If Sharon's loan is structured as an installment loan, calculate the total installment cost, the finance charge (interest), and the monthly payment.
3. Annuity Earnings: Jane is saving money in an annuity and is earning 4% annual interest compounded semi-annually. If she deposits $600 in the account every six months for 5 years, what will the future value of her account equal? How much interest will she have earned?

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 the Consumer 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 Writing Tips" section should be observed. Refer to the document (attached at the bottom of the page) Calculating Tree Height as an example of how the paper is to be formatted.