Module 3: Critical Thinking

Grade:

N/A

Critical Thinking Assignment(90 Points)

Important! Read First

Choose one of the following two assignments to complete this week. Do not do both assignments. Identify your assignment choice in the title of your submission.

Option #1:Consumer Mathematics #1

Question #1 - Simple Interest

Roger borrowed money to finance a new boat. The bank offered Jack $28,000 of the $35,000.To make up the difference, Jack secured a small personal, simple interest loan. Jack's loan was structured as an installment loan that required him to pay $297.50/month for 30 months. Calculate the amount financed, total installment price, the finance charge, and the interest rate.

Question #2 - Annuity Payment

James is saving money to open a corner store. He needs $15,000 in two years to make his down payment and is investing in an annuity yielding an annual interest rate of 7% compounded monthly. If the annuity requires that James make monthly investments, what annuity payment must James make to save $15,000?

Question #3 - Mortgage Financing

Peter and Rachael purchased a home costing $269,000. A mortgage company financed the home at a 5.5% rate and 30-year term, requiring that they make a 15% down payment. Calculate the down payment and monthly mortgage payment that Peter and Rachael must pay.

Requirements:

• Your paper should be 2-3 pages in length and cite and integrate at least one credible outside source.
• Include a title page, an introduction, a body, a conclusion, and a reference list.
• The introduction should summarize the problem and state what approach and method will be applied to solve it.
• The body of your paper should answer the questions posed in the problem, explain how you approached and answered the question or solved the problem, and for each question, show all steps involved.
• The conclusion should summarize your findings and what you have determined from the data and your analysis, with a broader or personal perspective in mind when applicable.
• As with all written assignments, provide in-text citations and a reference page.
• Include any tables of data or calculations, calculated values, and/or graphs associated with this problem in the body of your assignment.
• Document formatting, citations, and style should conform to theCSU-Global Guide to Writing and APA: IntroductionIn addition, the items noted in the "WritingTips" and in the "Math, Figures & Tables" sections should be observed.

Option #2:Consumer Mathematics #2

Question #1 - Simple Interest

Mary borrowed $10,657.50 from her bank to build an attached garage and work space on her house. Mary's simple interest loan had a rate of 13% and required her to pay $12,250 under the agreed terms. What was the duration of her loan?

Question #2 - Annuity Earnings

Jill is saving money in an annuity and is earning 5% annual interest compounded annually. If she deposits $2,500 in the account each year for 10 years, what will the future value of her account equal? How much interest will she have earned?

Question #3 - Mortgage Financing

Nina and Tom would like to purchase a new home, but they're not sure they can afford the $2,420/month mortgage payment. A mortgage company is willing to finance the purchase with a 7% rate and 30-year term. Calculate the amount of money the couple is considering borrowing.

Requirements:

• Your paper should be 2-3 pages in length and cite and integrate at least one credible outside source.
• Include a title page, an introduction, a body, a conclusion, and a reference list.
• The introduction should summarize the problem and state what approach and method will be applied to solve it.
• The body of your paper should answer the questions posed in the problem, explain how you approached and answered the question or solved the problem, and for each question, show all steps involved.
• The conclusion should summarize your findings and what you have determined from the data and your analysis, with a broader or personal perspective in mind when applicable.
• As with all written assignments, provide in-text citations and a reference page.
• Include any tables of data or calculations, calculated values, and/or graphs associated with this problem in the body of your assignment.
• Document formatting, citations, and style should conform to theCSU-Global Guide to Writing and APA: IntroductionIn addition, the items noted in the "WritingTips" and in the "Math, Figures & Tables" sections should be observed.