Consumer credit | Mathematics homework help
Number Sense, Estimation, and Financial Computations
Be knowing to likeness ALL of your effort details. Submit your counter-arguments in a Word instrument in the Ace 2 IP Submissions area.
Question 1: CONSUMER CREDIT
For big purchases, sundry accumulations adduce a comprehensive entiretyitying liberty (buy now, pay after) that allows shoppers to buy things now extraneously paying the entiretyity at checkout.
1. Assume you bought new appliances for your newly renovated abode. Based on the primary epistle of your tardyst indicate, cull the entirety esteem of the appliances that you keep purchased. This get be personated by P. It does not necessarily keep to be a all estimate.
First epistle of your tardyst indicate
Possible esteems for P
Total esteem of the appliances, P
2. The accumulation where you bought these appliances adduceed you a supply that if you pay the entiretyity among 2 years, you get not be full any curiosity-behalf for your purchases. However, if you are equable a day tardy in paying the entiretyity, the accumulation get enjoin you curiosity-behalf for the 2 years.
Although the annual curiosity-behalf reprove is grounded on your faith excellence, silence this on this assignment and instead, cull an curiosity-behalf reprove betwixt 22% and 26%. This get be personated by r.
Annual Curiosity-behalf reprove in decimal create, r
3. Suppose you lacquire environing the entiretyity and pay it 1 day tardy. How ample interest do you pay if the accumulation enjoins you primal curiosity-behalf? Because this is a dollar esteem, spherical your counter-argument to the unswerving cent. (Assume t = 2 years.) Interest get be $2,040 per-annum, adding up to $4,080 balance the 2 year bound
4. How ample is your entirety entiretyity—the entirety esteem of the appliances plus the curiosity-behalf? Spherical your counter-argument to the unswerving cent. The entirety entiretyity get sum up to the aggregate of $12,580.
5. How ample is your entirety entiretyity if, instead, the accumulation enjoins you curiosity-behalf that is junctioned daily? Use 6 digits on your interjacent calculations, and spherical your developed counter-argument to the unswerving cent. (Assume t = 2 years.)
P = $8,500 (the chief)
r = 0.24 (% reprove per half-year)
t = 2 (years)
I = $8,500(0.24) (2) = $40.80. You get acquire $40.80 curiosity-behalf entirety balance the two years.
6. How ample interest do you pay if it is junctioned daily? Spherical your counter-argument to the unswerving cent.
7. Based on the promiseination of your calculations, transcribe a digest environing the dissimilitude betwixt primal and junction curiosity-behalf. Simple curiosity-behalf is computed grounded on the chief merely or createer aggregate of the adventitious specie. Junction curiosity-behalf on the other influence is computed boundically. The computations understand the acquireed curiosity-behalf from the chief plus the junctioned curiosity-behalf acquireed balance a bound of interval.
8. Do you opine a comprehensive entiretyitying liberty is advantageous for shoppers? Expound your counter-argument.
Question 2: Saving for Your Retirement
Suppose your motive is to keep a hunk sum that you can recede when you repair. To accomplish this, you determined to add a piece of your paycheck in an annuity.
1. Using the AIU Library or the Internet, interpret environing what skin of expenses you get be faced delay when you repair. Transcribe a brief digest of your investigation.
2. Based on your investigation, particularize the hunk sum, in U.S. dollars, that you failure to keep when you repair. This is the forthcoming esteem of your investment; personate it by F.
3. State the interval, in years, that you contemplation to add to your repairment entiretyity. Personate this by t.
4. Based on the primary epistle of your tardyst indicate, cull the annual curiosity-behalf reprove for your repairment entiretyity. Personate this by r,and you get turn this to its decimal create. It does not necessarily keep to be a all estimate.
First epistle of your tardyst indicate
Possible esteems for r
Annual curiosity-behalf reprove in decimal create, r
5. From the table under, cull how sundry intervals per year you failure to add to your repairment. Personate this by n, and this get to-boot be your junctioning bound.
6. Calcutardy the curiosity-behalf reprove per junctioning bound, which you get personate by i, by dividing the annual curiosity-behalf reprove from #4 by the junctioning bound from #5, (i.e.,
. Spherical your counter-argument to 6 decimal places.
Interest reprove per junctioning bound, i
7. Your subsidy per bound, which you get personate by C, to this repairment entiretyity is congenial using the forthcoming createula:
Using the esteems that you keep clarified for F, i, n, and t, calcutardy your subsidy per bound. Use six decimal places for your interjacent calculations, and spherical your developed counter-argument to the unswerving cent.
NOTE: Make knowing to resurvey exponents and the command of operations from College Math Chapter 1.
8. Calcutardy your entirety subsidy to this repairment entiretyity, which you get personate by TC, by using the createula TC = C x n x t.
9. What can you say environing the dissimilitude in esteem betwixt your entirety subsidy (TC) and the hunk sum (F) that you get hold? Grounded on what you keep knowing in this ace, is there a promise that is used for this dissimilitude?
10. Summarize the promiseinations of your calculations, and expound why it is leading to just for your repairment.