Math 1090 Group Project Answers

Part-1A

Q.1 How much money is deposited?

$5,942.70

Q.2 What is the total amount of interest that is earned?

$57.30

Q.3 What is what percent of the total amount in the account is the interest earned?

0.9642%

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

The APR is 1%, while the interest earned is coming upto 0.9642% which is not a significant amount of
difference in the interest earned.

Part 1-B

Q.5 How much money deposited?

$32,609.78

Q.6 What is the total amount of interest that is earned?

$1,085.32

Q.7 What percent of the total amount in the account is the interest earned?

3.3282%

Q.8 How does the percent in #3 above compare to the APR? Explain.

The percent of interest earned is twice more than the APR.

Q.9 How do the answers in #4 Part 1-A and #4 in Part 1-B compare? Explain.

There is a d
ifference in the percent of the interest earned in the truck and home. The difference in the
percent is 2.364%(3.3282-0.9642)

Part 2-A

Q.1 What is the total amount of principal paid for the sixty payments?

$34,000.00

Q.2 What is the total amount of interest paid for the sixty payments?
$1,980.18

Q.3 What is the total amount paid for the sixty payments?

$35,980.18

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

5.8241%

Part 2-B

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

$250,000

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

$166,804.03

Q.3 What is the total amount paid for the 360 payments?

$416,804.03

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

66.72%

Q.5 How does the total percent of interest paid for the truck loan compare to the total percent of the
paid for the mortgage?

The total interest percent on the truck was 5.8241%.

The total interest percent on the home was 66.72%.

The interest paid on the house is astronomically higher than the interest paid on the truck.

Part -3

Reflect: How has this project helped you learn and understand about future and present value? How
do you think the results would change is the parameters "number of years" and "number of payments
per year" at the beginning of the project were changed? How could you use this work to learn more
about future value and present value? There are numerous programs online that produce future value
and present value schedules like these in the project.

T
his project helped me to understand the combination of math and finance in the real world. The
present and future value is helpful in many ways such as in the inflation, incomes, expenditures,
global finances, and much more. This project helped me in directing my perspective in the actual
working of a financing company.