Consumer Mathematics

Write a report that answers the following questions and that meets 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 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 12 short videos will give you an excellent overview. The next 12 may also be helpful.

Questions:

1. Terry deposits $3500 into an account paying 10% annual interest compounded monthly in hopes of having at least $7000 in eight years to take his dream vacation to China. How much money will Terry have in eight years? Will he be able to take his trip?
2. What is the total cost of a $525 iPad that is on sale for 15% off, if the local sales tax rate is 7%?
3. You have decided to purchase a new car for $15,000. You have a choice between the two loans below:

Loan A: three years at 4.5%
Loan B: five years at 4.0%

1. Calculate the monthly payments and the total interest paid for each loan
2. Which loan do you think is better and why?

Requirements:

1. Your written paper should be 2-3 pages in length, not counting the title and reference pages, which you must include.
2. You need to cite at least one source outside the textbook. The CSU-Global Library is a great place to find resources.
3. The introduction should summarize the problem and state what approach and method will be applied to solve it.
4. 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.
5. 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.
6. 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.
7. Include any tables of data or calculations, calculated values, and/or graphs associated with this problem in the body of your assignment.
8. Your paper must be formatted according to the CSU-Global Guide to Writing and APA Requirements.
9. If you need assistance with your writing style, start with the links under the Research Help and Writing Help tabs on the CSU-Global Library's homepage.