How Math And Life Is Important To Us?
Answer:
One example is how math is important in finances.
If you take out a mortgage or a loan it's fitting
to know how the numbers work so you wont
be over charged. Also for banking when it
comes to savings accounts, and other
interest bearing accounts. Knowing
maths will enable you to
be able to compute your interest earned.
If you purloin out an amortized loan with a fixed APR for a finite period of time, there is a pocket money formula that can be derived by utilizing the time value of money.
Pmt = L [ r ( 1 + r)n]/ [ ((1 + r )n) - 1]
L = loan amount
r = monthly interest rate
n = number of periods financed
You are also charged finance fees for loans as ably.
Finance charges = n (Pmt ) - L
Total amount paid = n (Pmt)
You can substitute Pmt + e for Pmt ( to calculate how long it will take to repay off the loan with a constant additional principle salary of e )
e = additional principle payment each extent.
Solve the payment formula for n, and substitute Pmt + e for Pmt.
You may have heard of the housing crises moderately due to ARM (Adjustable Rate Mortgages), and Negatively Amortized mortgages.
A negatively amortized mortgage is when your monthly payment does not cover your monthly finance charge. Therefore your principle increases with time vs decreasing.
Your mortgage loan can negatively amortize up to 15% (maybe more because this may swing from state to state).
You can get a mortgage for $200,000 and in about 5 years you can owe $230,000.
It's adjectives about the numbers. That's why it is important to know mathematics so you
can own an understanding of financial contracts. There are many many more examples,
I of late gave you a couple of them that relate to money.
Research the following topics, and find out what type of mathematics is involved.
Amortization, Negative Amortization, Reverse Mortgages, CD's, Money Market Accounts, and Credit Card Math.
Resolved Questions:
I Have A Math Question, Can You Help?
A piece of rope 930m long is cut into two pieces so that one piece is two-third as long as the other. Find the length of each piece? Would you know the answer to this question. Please recommend The solution to your maths problem is very...
Is 2 A Zero Of X^20-32x^15-5x^9 +10x^8-x^7+15x^3-x+10?
A little factoring helps with the evaluation. x^20 - 32x^15 - 5x^9 + 10x^8 - x^7 + 15x^3 - x + 10 = x^15(x^5 - 32) - 5x^8(x - 2) - x^3(x^4 - 15) + 10 (factor pieces of it) = 2^15(32 - 32) - 5*2^8(2 - 2) -...
Can You Round 0.8394263 To The Nearest Hundred-thousandth.?
The hundred-thousandth place is the 5th to the right of the decimal point. You have to look at the 6th digit to see if you need to round up. The 6th digit is 6, so the 2 in the 5th decimal place wishes to be increased to...