MM255 PROJECT 8 Rev 10.2011
MM255 PROJECT 8 Rev 10.2011
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Date Created: 11/14/15
Unit 8 Mortgages Instructor Graded Project You must show your work on all problems You may type your answer right into this document Total points for project 45 points Projects must be submitted as a Microsoft Word document and uploaded to the Dropbox for Unit 8 All Projects are due by Tuesday at 1159 PM ET of the assigned Unit NOTE Project problems should not be posted to the Discussion threads Questions on the project problems should be addressed to the instructor by sending an email or by attending of ce hours Part I Basic Computations 1 Annie Oakley is purchasing a home for 215000 She will nance the mortgage for 15 years and pay 425 interest on the loan She makes a down payment that is 20 of the purchase price a Find the monthly payment including principal and interest 5 points Answer 129392 Loan Amount 215000120 172000 b Calculate the total interest Annie will pay over the 15 year period 5 points Answer 6090560 Total Payment 1293921215 2329056 Interest Paid 2329056172000 609056 c How much more interest would Annie pay by paying for the home in 30 years rather than 15 years 5 points Answer 7170480 846141230 3046104 3046104172000 1326104 1326104609056 7170480 d The annual taxes on Annie s property come to 7100 and she pays 535 for insurance each year Find her monthly PlTl payment if she takes a 15 year loan 5 points Answer PlTl Payment 129392 710053512 193017 Part H Case Study Newlyweds fBg nf jn ghgJgt 1 In order to pay the 18000 for the necessary repairs to the house the couple has a choice between two options A Borrow the 18000 from the bank at 5 interest compounded quarterly for 5 years B Increase the mortgage amount to include the 18000 bringing the total amount nanced to 187100 Compute the total interest paid over the life of the loan for each of these options Answer Option A Answer Option B Eric and Pamela may want to sell this house in 10 years or so in order to get a bigger house They would hope that the house would appreciate to at least 220000 Research the appreciation rates of singlefamily homes in your city region or state Based on your research do you think it is reasonable to expect this house to be worth 220000 Justify your answer based on appreciation rates in your area 10 points Requirements Write your essay in this document do not save it in a separate le You must clearly state your position with wellstructured paragraphs using proper grammar spelling and sentence structure This is not an opinion question you must offer evidence to support your position using properlycited sources Your answer must be between 150250 words about 1 page of text You must cite at least one source book website periodical using APA format Do not use unreliable sources such as Wikipedia and Yahoo Answers Answer Students in MM255 may submit their projects to the Math Center for review Tutors will not grade or correct the project but they will provide guidance for improvement Students should submit assignments early enough to receive feedback and make corrections before the project due date 24 hour turnaround times MondayThursday and 48 hour turnaround times on weekends are typical Email projects to kumckaplanedu Please put quotproject reviewquot in the subject line of the message
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