Assignment: Open Response 8 (50 Points) Answer each of the following. If you are typing, be sure to save this in Rich Text Format, .rtf. Loans and Credit In this open response, you are going to pretend to be buying a high priced item using credit of different kinds. We are going to compare the cost of each and come to a conclusion. I. Find Your Item (5 pts) Using the links below, or one of your choosing, find an item you would like to buy in the $300 to $700 range. List the item in the table provided. Even though you would normally include tax, shipping and handling, we will ignore these in this exercise. Name of Item Special details Site where you found it Price Computer 1. High Speed 2. Gaming Quality 3. Large Hard Drive Space 4. 90 Frames per Second Amazon.com $600 LINKS: http://www.bestbuy.com http://www.sony.com/ http://www.tiffany.com/ http://www.zales.com/ II. Option 1: Use Your Credit Card (15 pts) You have a Maxi Card with a $700 limit for this exercise. The card has a monthly finance charge of 1.67%. Fill out the following table. Your payment each month is $50. You are finished when you have paid it off. Each month, except the first: Balance = last month's new balance - payment Monthly Finance Charge = balance (0.0167) New balance = balance + monthly finance charge Month Balance Interest New Balance Payment Month Balance 1 9 2 10 3 11 4 12 5 13 6 14 7 15 8 16 Total Interest New Balance Payment $ $ Option 2: Get a Bank Loan (10 pts) You visited a local bank. Because of your good credit, they agreed to give you a personal loan, simple interest, at the current interest rate of 12.5% APR. You will pay this back in 1 year. Interest = p r t = __________________ Total Payment = Principal + Interest = ______________ Payment per month = Total Payment / 12 = ______________ III. Option 3: Installment Plan (10 pts) The store you are buying the item down offers you an installment plan. The terms of the contract for the plan are: $50 down 12 payments Finance charge of $100 Interest = Finance Charge = ________________ Total Payment = Cost of item + Finance charge = _____________ Monthly Payment = (Total Payment - Down payment / 12 = __________ IV. Time to Choose! (10 pts) Compare the three options. a. Which is the most convenient? b. Which has the shortest payment time? c. Which has the lowest total payment and interest? d. Which has the lowest monthly payment? e. Make a choice. Assuming that you could not pay for your item any other way, which would you choose and why? Your reasons why may incorporate a, b, c, and d, but may also include other reasons. Assignment: Open Response 10 (50 points) Answer each of the following. If you are typing, be sure to save this in Rich Text Format, .rtf. Furnishing and Decorating a Room In this open response, draw a scale model and figure decorating and furnishing costs. I. Paint the Walls (10 points) We are going to use good interior house paint. You can decide on the color you want. If you know anything about layering paint, you may want an extra gallon of a different color to layer it. Or you may want to paint two different colors for different walls. It's up to you and your imagination. The room is 20 feet by 25 feet. The ceiling is eight feet. The paint costs $13.98 per gallon and covers 400 square feet per gallon. A. What room are you decorating (bedroom, living room, etc.)? B. What color or colors are you using? C. Are you going to use the same color on all walls or do you have a different plan? D. Compute the areas, number of gallons you will need (if different paints are used, how much of each), and final cost for paint. Show your computations here. Fill in the table. Paint color or colors Area to be covered Number of gallons of each Brushes, drop cloths, other painting supplies Total $25.00 II. Find the Furnishings. (15 points) You are working with a room with the dimensions, 20 feet by 25 feet. Imagine what you would like to have in your dream room. This can be a bedroom, kitchen, living room, dining room, or recreational room. A. Now, let's go online and find the furnishings. http://www.furntiture.com/ http://www.thomasville.com/ http://www.lanefurniture.com/ http://www.bassettfurniture.com/ Fill in the table. Furniture Size (in inches or feet) Price You may estimate this if the information is not available Total Cost of Furniture: _________________________ B. Don't forget other items for use or decoration. You may use other links, as necessary. www.target.com www.jcpenny.com www.walmart.com www.sears.com Fill in the table. Other Items Size, if it must stand on the floor Price Total Cost for Other Items: ________________________ III. Make the Scale Drawing (20 points) Your scale is one inch = four feet On the next page you will find a piece of graph paper. Each square is (or 0.25) of an inch wide. Four squares are one inch long. You may use this or any program you may have to make your drawing. First, figure out the scale dimensions of the room and draw it on the paper. Then figure out the scale dimensions of each item you are placing in the room. A. Room 20 feet by 25 feet Scale Dimensions = ___________________ Draw the outline of the room on the graph paper or in the computer program you are using. B. Fill in the table. Furniture or Item Actual Dimensions Scale Dimensions C. Make the scale drawing. Use the graph paper on the next page or any computer program which you know how to use. IV. Find the Total Cost (5 points) A. What is your total cost of the decorating and furnishing project? B. What did you like best about this project and why? C. What did you like least about this project and why? \f\f