The Mathematics of Money

442 Chapter 10 Consumer Mathematics Appraisal. The lender will require an appraisal of the property’s value. Since the property ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Putting all of these expenses together can add up to quite a large amount of m ...

444 Chapter 10 Consumer Mathematics Subtracting to fi nd the difference, we can see that, over 30 years, they would save $37,483 ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Liankung owns a house worth $218,500. He has two mortgages on the property. T ...

446 Chapter 10 Consumer Mathematics E. Qualifying for a Mortgage True or false: If you pass both the 28% and 36% tests, you qua ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Will and Stacey are selling their house and moving to a new city. In the time ...

448 Chapter 10 Consumer Mathematics Ricky and Lucy bought an apartment for $110,000. They made a 25% down payment and fi nanced ...

Copyright © 2008, The McGraw-Hill Companies, Inc. 10.1 Credit Cards 449 Warren and Stella bought a house for $154,035. They mad ...

450 Chapter 10 Consumer Mathematics Example 10.3.1 Bill is shopping for new dining room furniture. A furniture store offers a di ...

Copyright © 2008, The McGraw-Hill Companies, Inc. The Rule of 78 reflects the idea (which we also saw with amortization) that in ...

452 Chapter 10 Consumer Mathematics Installment Plan Interest Rates: Tables and Spreadsheets As we noted early in this section, ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Installment Plan Interest Rates: The Approximation Formula An alternative mean ...

We then can fi nd the rate for this factor by using a table. By the approximation formula: We have to be careful about using the ...

Using the approximation formula, we would fi rst calculate the simple interest rate. The monthly payments total 12($35)
$420, ...

456 Chapter 10 Consumer Mathematics B. The Rule of 78 (Optional) Use the Rule of 78 to determine interest/principle splits and p ...

Copyright © 2008, The McGraw-Hill Companies, Inc. b. The approximation formula For the lawnmower installment plan described in ...

Suppose that I make $100 monthly payments for 24 months on an installment plan where the initial balance was $2,000. a. For the ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Calculating Lease Payments Suppose that the total price (including all fees, t ...

460 Chapter 10 Consumer Mathematics The following example will illustrate: Example 10.4.2 Using the information provided so far ...

Copyright © 2008, The McGraw-Hill Companies, Inc. Before moving on, we should note that the method for calculating lease payment ...