Jay Gordon, Jesse Mbu, Austin Brey, Rita Anderson

Mila

Math 1090

7/5/2018

PART I-A

1.- How much money is deposit?

The amount of money deposit was 5,942.70

2.- What is the total amount interest

the amount of interest was $ 57.30

3.- What percent of the amount deposit is the interest earned?

The percent amount deposit of the interest earned was 0.0096

4.- How does the percent in the # 3 above compare to the APR? Explain.

The percent of the amount of interest earned is about equal to the APR. The reason why is

because the APR is calculated on the amount deposited into the account therefore the percent of

the interest earned would be the same.

PART I-B

1.- How much money is deposit?

The total amount money deposit was $ 48,914.68

2- What is the total amount of interest earned?

The total amount of interest earned is $1,085.32

3- What percent of the amount deposited is the interest earned?

The percent of the interest is .0217

4- How does the percent in #3 above compare to the APR?

The percent in #3 is higher because when more money is deposited into the account,

compounding interest will take effect and give you a higher rate on your return.

PART II-A

1- What is the total amount of principle paid for the sixty payments?

The total amount of principle paid is $ $34000.

2- What is the total amount of interest paid for the sixty payments?

The total amount of interest paid is $1980.18

3- What is the total amount paid for the sixty payments?

The total amount paid is $35980.18

4- The total interest is what percent of the amount of the loan?

The total interest is about 5.82% of the amount of the loan.

PART II-B

1- What is the total amount of principle paid for the 360 payments?

The total amount of principle paid is $200,000.

2- What is the total amount of interest paid for the 360 payments?

The total amount of interest paid is $133,443.23.

3- What is the total amount paid for the 360 payments?

The total amount paid is $33,443.23.

 4- The total interest is what percent of the amount of the loan?

The total interest is 66.72% of the loan amount.

5- How does the total percent paid for the truck loan compare to the total percent of the

interest paid for the mortgage?

The total percent paid for the truck loan is significantly smaller than the total percent of

interest paid for the mortgage. Because the mortgage is stretched out to 30 years the

amount of interest paid is a lot higher.

PART III

This has helped us understand real life examples of future and present value. It has also

helped us with understand loans that we could possibly have in the future. If we changed the

number of years or the number of payments per year to a lower amount the dollar amount of the

payment would increase but the interest paid would decrease. We would be able to use this work

to be able to calculate future and present values for current loans that we may have. It could also

help us to see the benefits of making a higher monthly payment and how much it could save us

over the life of the loan.