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Discrete Functions Unit Assignment

You may choose to complete your mathematical calculations by hand
and scan or take images to upload to the dropbox. To help your teacher
review your work, submit your calculations as a single file document
(preferably as a pdf). If you aren’t sure how to do this, e-mail your
teacher for assistance. 

Important
When answering questions in a mathematics course always be sure to
use the following guidelines to help you do your best:

 Provide full solution, showing all of your steps.

 Make sure that there is one step or idea per line.
 Use one equal sign per line.
 Make sure that equal signs line up vertically.
 Don't use self-developed short form notations.

1. A high performance all-terrain vehicle (ATV) is bought at a price of $20

000. It loses 10% of its value every year. Express this scenario as a
sequence recursively and explicitly (provide its general term).
(3 marks )
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 2. Following one side of a new street in a neighbourhood, the house
numbers increase by six. The house number of the first house on the
street is 319. Express this sequence recursively and explicitly.
(3 marks )

3. $100 is deposited at the end of every week for five years in an

account that pays 14%/a, compounded weekly. (2  marks each )
a. What type of annuity is this?
b. Find the future value of the annuity using the formula.
c. Find the future value of the annuity using a spreadsheet. In your
answer include the formulas that you typed.
d. Find the future value of the annuity using the TVM solver on a
graphing calculator or on a website. In your answer, include what
values you typed for each parameter.

4. Vanna has just financed the purchase of a home for $200 000. She
agreed to repay the loan by making equal monthly blended payments
of $3 000 each at 4%/a, compounded monthly. (2 marks each )
a. Create an amortization table using a Microsoft Excel spreadsheet.
In your answer include all the formulas used.
b. How long will it take to repay the loan?
c. How much will be the final payment?
d. Determine how much interest she will pay for her loan.
e. Use Microsoft Excel to graph the amortization of the loan Hint
f. How much sooner would the loan be paid if she made a 15% down
payment?
g. How much would Vanna have saved if she had obtained a loan
3%/a, compounded monthly?
h. Write a concluding statement about the importance of interest rates
and down payments when taking out loans.

5. A lottery offers two options for a prize, A and B, as shown below.

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 a. Which option would the winner choose if you expect to live for
another: (2 marks)
 20 years?
 50 years?
b. Use technology to determine the range of life expectancies when
each option is preferred. Show your work. (2 marks)
c. Write a brief reflection about which option you would choose, and
why. (3 marks)

Option A : $1 000 a week for life.

Option B : $1 000 000 in one lump sum.

If you choose Option B, you have the opportunity to place the winnings
into an investment that also makes regular payments, at a rate of 3%/a,
compounded weekly. The annuity will pay out a specific amount weekly
based on how long you want the annuity to last.

6. Mary would like to save $10 000 at the end of 5 years for a future
down payment on a car. (3 marks each )
a. How much should she deposit at the end of each month in a
savings account that pays 1.2%/a, compounded monthly, to meet
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 her goal?
b. If you currently have a part-time job, consider your hourly wage. If
you do not have a job, use the minimum hourly wage in your
jurisdiction. How many hours each month would you have to work,
just to make those payments? Write a brief reflection on the
advantages and disadvantages to long-term saving for a purchase,
compared to borrowing a large sum of money and paying it off over
time. Note that interest rates for savings accounts are always lower
than interest rates for borrowing.

Submit this assignment to the dropbox. This assignment will be evaluated for a grade
that will contribute to your overall final grade in this course.
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