business math phase 5 indivigual project

MAT105 Phase 5 Individual Project

Instructions : Type your answers in the gray boxes . Rename the by replacing "lastname " with your actual last name "MAT105_p5_ip_lastname .doc . Submit your completed document to your instructor via the Drop Box

Terry Kelly talked with her investment counselor . She was advised to calculate her current net worth and to project her 2003 net worth to determine if her 2004 budget would accomplish her objective of increasing her net worth . She listed the following assets and liabilities for 2003 . To calculate her net worth , she found the

difference between Terry 's home appreciated (increased ) in value by 0 .04 times the 2003 value while her car depreciated (decreased ) in value by 0 .125 times the 2003 value . Her car loan decreased by 2 ,100 , while her home mortgage balance decreased by 887 . Kelly plans to pay her personal loan in full by the end of 2003 . Of her 2 ,000 planned investment , she will place 1 ,000 in savings and 1 ,000 in stocks and bonds . She also plans to reinvest the interest income of 141 (in savings ) and the dividend income of 364 (in stocks and bonds ) earned in 2003 . She projects her checking account balance will be 1 ,500 at year-end for 2004

Calculate Terry 's calculate her net worth for 2003 . Use the information given to project Terry 's assets and liabilities for 2004 . Then project her 2004 net worth . How much does Terry expect her net worth to increase (or decrease ) from 2003 to 2004

ASSETS 2003 Projected 2004

Checking account 2 ,099 1 ,500

Savings account 2 ,821 3 ,962

Auto 10 ,500 9 ,187 .5

Home and furnishings 65 ,000 67 ,600

Stocks and bonds 4 ,017 5381

Other personal property 3 ,200 3 ,200 LIABILITIES Car loan 8 ,752 6 ,652

Home mortgage 54 ,879 53 ,992

Personal loan 1 ,791 0 2003 Net Worth 22 ,215

Projected 2004 Net Worth ( 30 ,186 .5

Increase in Net Worth ( 7 ,971 .5

Legan Company borrowed 15 ,280 at 16 1 /2 for 12 years . How much simple interest did the company pay ? What was the For each of the following problems , find 1 ) the ordinary interest using ordinary time , 2 ) the exact interest using exact time , and 3 ) the ordinary interest using exact time . Round answers to the nearest cent 5 ,000 at 17 annually for 90 days

Answers : 1 ) 212 .50 2 ) 209 .59 3 ) 209 .59

A loan of 4 ,225 at 8 annually made on March 5 and due on May 5 of the same year

Answers : 1 ) 57 .27 2 ) 56 .49 3 ) 56 .49

One real estate sales technique is to encourage customers or clients to buy today because the value of the property will probably increase during the next few years "Buy this lot today for 30 ,000 . In two years , I project it will sell for 32 ,500 " Let 's see if this is a wise investment

In two years the future...