# math for liberal arts assignment

Oct 7th, 2015
SoccerBoss
Category:
Mathematics
Price: \$5 USD

Question description

Pick a unique real problem and try to solve it using the consumer math solving strategies from this unit. Present the problem and the solution to the rest of the class.  View the problems posted by your classmates and respond to at least two. Read the Consumer Math Application Directions for detailed directions.

Pick a problem:

Find a problem in your life that you can solve using the consumer math that you learned in this unit.  Most of us have home, car, or education loans for which we sometimes need to calculate payments or time required to repay.  Many also have savings accounts or other investments and want to calculate growth in value over a period of time.

Solve the problem:

Use the consumer math learned in this unit to solve your problem.  The better you use the appropriate mathematics to correctly solve the problem, the more points you will earn.

Example:

Last summer my husband and I purchased a new washer and dryer. The store was running a sale, so for the both of them they were asking for \$1475. We paid \$550 up front, and agreed to pay the rest of the balance a 4% add-on rate for the next 2 year.

Amount to be financed = \$1475 – \$650 = \$825

Amount to repaid = P (1 + rt)

= \$825 (1 + 0.04 x 2)

= \$891

Monthly payment = \$891/24 = 37.12

Total cost of purchase = \$650 + 891 = 1541

According to these calculations we paid \$66 more than the original cost.

OR

Statement of the problem

One bank nearby advertises a savings account with an annual interest rate of 1%, compounded monthly.  Another bank, all the way across town, advertises a savings account with an annual interest rate of 1%, compounded daily.

I have \$5000 to invest, and I will not touch my savings for 5 years.  I remember from MTH 151 that compounding more frequently gives a higher total return on my investment. Is it worth the extra time and distance to go to the bank across town? For the purpose of this problem, let’s assume that neither bank offers online services, or that I prefer to deal with my banker in person.

Solution of the problem

The formula for compound interest is

where amount after n compounding periods

initial amount invested

annual interest rate

number of compounding periods per year.

For the nearby bank,

For the across town bank,

Although in 5 years, the interest would indeed be greater for the across town bank, the difference is only \$1.30, so it is probably more worthwhile to use the nearby bank.

Other Topics:  mortgages, loans, credit cards

(Top Tutor) Daniel C.
(997)
School: UCLA

Studypool has helped 1,244,100 students

## Review from our student for this Answer

Sigchi4life
Oct 12th, 2015
"Excellent job"

1824 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors