Do you think this project shows how math can be applied to the real world?

If "yes", please elaborate-

why are the results important or beneficial? If "no", how could the lab change to make it more
applicable to the "real world"?

Yes, absolutely. Using what I learned from this project, I can better understand the inner
working of compound interest and am aware of how quickly debt can accumulate, if I were to
exclusively pay the minimum monthly payment.

Can you give an example of another application where this type of analysis would be beneficial? Be
specific.

The math used in this activity can be used in any situation where an amount of
something can continue to compound over time. Examples of this would be the rate at which
global warming is increasing every decade, or even the rate at which Earth's glaciers are
diminishing.

If you were a financial adviser, why would it be important to be able to explain the details of this
project to clients?

It would help the client understand how making bigger payments early on could help
them pay off their debts faster and avoid paying more in interest in the long-term.

Did this assignment change your opinion of the usefulness of math? Write one paragraph stating what
ideas changed and why. If this project did not change the way you think, write how this project gave
further evidence to support your existing opinion about applying math. Be specific.

This assignment has further supported my opinion of math. By applying math to real-
world situations, people can make smart decisions about how they manage their debts and
think realistically about how long they are willing to be in repayment for. This is especially
important when people apply for loans with long terms—just because they apply for a loan with
a 15-year term doesn’t mean they have to be in repayment for that long!

What is the best plan for paying off a credit card balance? What is the worst approach and why? What
should you do if you can't afford the payments required for the best plan? What are two things that
the "average" consumer can learn by completing this assignment?

The best plan for paying off a credit card balance is to make larger payments early on—
this helps to reduce the interest payments and start making larger principal payments faster,
which in turn reduces the interest payments even further. The worst approach would be to
continue making the monthly minimum payment, which would result in the consumer taking
much longer to pay of their debt.

The average consumer can learn to familiarize themselves with the principal/interest
ratio of their early months of repayment vs the ratio of their later months. They should also
learn that paying more now means paying less later. They should also understand that