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Mathematics of Finance

 

Part IV: You find that a small business loan in the amount of 50,000 is the amount you need to purchase the restaurant location. After researching banks to find the best interest rate, you find that banks for small businesses offer the best interest rate of 9% interest that compounds monthly for 7 years.

 

    1. What is the monthly payment for this loan?

 

    1. Show the formula that you used and the values used for each variable to calculate the monthly payment.

 

    1. What is the unpaid balance of the loan at the end of the 1st year?

 

    1. Show the formula that you used and the values used for each variable to calculate the unpaid balance at the end of the 1st year.

 

    1. What is the unpaid balance at the end of the 6th year? Show the formula that you used and the values used for each variable to calculate the unpaid balance at the end of the 6th year.

 

***The Interest-Present/Future Value M.U.S.E. below should provide some helpful tips in completing your final Individual Project. ***

 

The grade is based on the percentage of My Math exercises completed successfully.

 

All MyMathLab exercises need to be done! Can you do these also?

 

As always, price is negotiable.

 

If the above part IV and the solution to what the professor wants (listed below) are given to me by Sunday, I will be able to put all 4 steps together, and submit it on time.

Instructors’ comments to assist with fixing P4IP before submitting it with P5IP:  Resolve a real-world problem using an appropriate problem-solving method for the profession – Application of Equations and Inequalities (28/30) – A good start to the discussion on the questions. A little more elaboration is needed. Define and Analyze the Problem – Established Equations for Revenue & Cost (30/30) – The equations were set up correctly. Solve professional problems using appropriate mathematical principles – Break Even Calculation (26/30) – You did correctly solve the equation. What would be the revenue/cost with 5 pizzas. Generate and analyze possible solutions – Profit Calculation (26/30) – Profit for 500 pizzas was correct. Computing the number of pizzas for $1100 was correct. You did not solve 11x – 55 > 1595. Resolve a real-world problem using an appropriate problem-solving method for the profession – Applications of Finance (26/30) – Good discussion on finance in business. Total Points (136/150)

 

 

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