Objectives:
|
|
Vocabulary:
|
Formulas:
|
Possible
Classroom Examples:
- Find the simple interest of each of the loan amounts below:
- loan amount of $35,037 at 6% for 2 years
- loan amount of $8950 at
for 10 months - loan amount of $5682 at
for 278 days - Find the future value of $3670 deposited at 2 ¾ % for 7 years
- Find the maturity value of $2720 borrowed at 12 ¾ % for 275 days.
- Find the present value of a future value of $420 at simple interest for 2 years
- How much must be deposited now at
interest so that in 2 years and
7 months an account will contain $3,000? - Sam Spade inherited $7,000. He wants to buy a used car, but the type of car he wants typically sells for around $8,000. If his money can earn interest, how long must he invest his money?
- Ray and Teresa Martinez buy a bedroom set at Fowler’s Furniture for $3,700. They put $500 down and finance the rest through the store at 9.8% add-on interest. If they agree to make 36 monthly payments, find the size of each payment.
- The activity on Denise Helling’s Sears account for one billing period is shown below. Find the average daily balance and the finance charge if the billing period is March 1 through March 31. The previous balance was $157.14, and the annual interest rate is 21%.
| March 5 |
payment |
$25.00 |
| March 17 |
tools |
$36.12 |
- The Clintons bought a house from the Bushes for $389,400. In lieu of a 20% down payment, the Bushes accepted a 10% down payment at the time of the sale and a promissory note from the Clintons for an additional 10%, due in 4 years. The Clintons also agreed to make monthly interest payments to the Bushes at 11% interest until the note expires. The Clintons obtained a loan from their bank for the remaining 80% of the purchase price. The bank in turn paid the sellers the remaining 80% of the purchase price, less a sales commission (6% of the purchase price) paid to the sellers’ and buyers’ real estate agents.
- Find the Clintons' down payment.
- Find the amount that the Clintons borrowed from the bank.
- Find the amount that the Clintons borrowed from the Bushes.
- Find the Clintons' monthly interest payment to the Bushes.
- Find the Bushes' total income from all aspects of the down payment.
- Find the Bushes' income from the Clintons' bank.
- Find the Bushes'
total income from all aspects of the sale.
© 2007 Elizabeth E. K. Jones and the
ASU
Department of
Mathematics and Statistics - All rights reserved.