I have some math questions for y'all

[ccharles000]

Lets see who can get them right first.

1-Joe bought a car priced at $18500. He made a 10% down payment and borrowed the rest of the money at 9% annual interest rate. He will pay the balance due in 5 years. How much interest will he pay?

2-One serving of cereal provides 5 grams of fiber. This is 21% of the daily value recommended for a 2000-calorie diet. How many grams of fiber are recommended daily for a person on a 2000-calorie diet?

[Kerrytravelers]

1. I only taught as old as third grade, and they never learned this.

But I can add, subtract, multiple and divide with a skill like you've never seen! I even know the Nines trick!!!

:rofl:

[Mr. Ected]

2. ...

1. $4087.54

2. 23.8 grams

[ccharles000]

3. ...

1-no
2-yes

[Mr. Ected]

7. OH

$7492.50

I amortized it monthly the first time.

[ccharles000]

8. You are right

:party:

[quakerboy]

4. answers

1- assuming you mean he will pay the balance Over the course of 5 years, rather than a lump sum after 5 years, with no payments in between, he borrowed $16650, his monthly payment should be 345.65. He will pay 4088.94 in interest over 5 years, for a total repayment of $20,739

2 23.81 grams

[ccharles000]

5. ...

1-no
2-yes

[quakerboy]

6. alternately

if you meant pay in a lump sum at the end, his interest should be 9422.20. There are other potential answers, based on how often and when payments might be made, and it also depends minutely on whether interest compounds daily, anually, monthly, etc.

[ccharles000]

9. it is $7492.50

16650 times .09 times 5 =$7492.50

[Mugu]

12. That doesn't take into account interest on the interest. n/t

[ccharles000]

13. that is what it says in the book

[Mugu]

16. If you can find a lender that doesn't charge interest on unpaid interest good for you.

[ccharles000]

17. I have and he lives in my GED math book

:D

[quakerboy]

19. And

welcome to the education crisis/morgage foreclosure crisis/debt problem of the USA.

Sure.. Banking and money are easy to understand. Why cant those damn irresponsible borrowers figure out their own shit and pay their debts.

[quakerboy]

18. actually, its 8968.09 done that way

16650*1.09=18148.50
18148.50*1.09=19781.86
3more = 25618.09, -16650=8968.09

Interest compounds. Or so say the lenders.

[Mugu]

20. And that's only if you compound annually.

Most lenders compound at least monthly and many compound daily.

[quakerboy]

22. that was my first addendum

compounded monthly. I haven't run into any lately that did it daily, though I wouldn't want to put it past them.

[Mugu]

10.

8968.086
25.25

[ccharles000]

11. ...

1-no
2-no

[Mugu]

14. Upon further review you're right, 23.809523 appears to be the answer.

[ccharles000]

15. yup

[petronius]

21. 1) Too much, 2) Not enough

Math is easy!

:)

[Duer 157099]

23. 1) a lot 2) a lot n/t

[Yavin4]

24. The First Question Doesn't Specify How The Interest Is Compounded

Without that, the answer is undefined.

[ccharles000]

27. ...

16650 times .09 times 5 =$7492.50

you don't do anything more. I think you are making it harder than it is.

[Yavin4]

28. You Have To Know How Interest Is Compounded

If you take out a loan and the interest is compounded, monthly, semi-annually, annually, etc., then the answer is different.

You could use an Excel function which would give the future value of $16,650 at 9% interest compounded at whatever interval you want.


Also, looking at your example, it assumes that no additional payments are ever made over the 5 years, which would reduce the principal and adjust the interest payment. For example, what if the dude paid $16,650 in the second month of the contract. Then no interest is made.

Sorry to get all anal about this, but this test is not teaching you correctly about interest and finance.

[Inchworm]

25. WolframAlpha is your friend

http://www.wolframalpha.com/

1. Search "amortization with down payment"

2. no clue about doing this without paper.. I'm tired :P

Was fun thinking there for a minute, thanks. :)

:hi:

[Inchworm]

26. I'd have gone nuts trying to sleep..

I used

5/21 = x/100 =

500/21 = 23.809523809523809523809523809523809523809523809523809523809...

now I can sleep. G'night

:hug: