Before submitting your assignment, refer to the document * Calculating Tree Height* (linked at the bottom of the page) as an example of how the paper is to be formatted.

**ption #2: Consumer Mathematics #2**

Write a paper that adheres to the *Written Assignment Requirements* in the* d APA Requirements*.

Your paper should contain a title page, an introduction, a body, a conclusion, and possibly a list of references. The introduction should provide background information about your topic, and it should state what your paper will address. We often state the main idea or purpose of the paper in what is termed a thesis statement.

The body of your paper details your methodology, findings, and/or the results of analysis. APA requires that tables, figures, and calculations/formulas used in your paper appear in the paper body.

Your conclusion should restate your answers to the questions posed in the problem but do so with a broader perspective in mind. The conclusion is where we also state personal experiences and possibly the “take-home” messages associated with our work. As with many written assignments, in-text citations and a reference page are often included.

The questions asked in this assignment involve calculations related to simple interest, compound interest, annuities, or mortgages. Your introduction should provide background information about these topics, describing their use and importance.

The body of your paper should explain how you solved the assigned problems, showing your detailed calculations. Unfortunately, writing equations in Word is not simple. It can be done either by using the Word equation editor, or you may simply want to cut/paste the equations provided for you in the * Consumer Math Equations* document (linked at the bottom of the page). This document contains interest and other financial equations formatted using the Word equation editor as well as instructions for using the equation editor. Another option is to write your equations by hand and include JPG images in the appropriate places in your paper.

Each of the problems you will be solving requires using your calculator to solve a financial equation. In order to calculate answers correctly, it is important that you follow several important rules:

- Follow the Order of Operations to solve complicated problems.
- Attempt to solve equations without writing down intermediate values. If you must write down values, keep as many digits or decimal places as you can. Better yet, use the memory locations in your calculator to store intermediate values.
- NEVER round intermediate calculations. Only round the final answer.

Several excellent videos that describe how to solve algebraic expressions using the Order of Operations Rules are available at **mathispower4u.yolasite.com**. After reaching the Mathispower4u site, click on the *Algebra 1 Video Library* link and find the *Order of Operations* section in the first column. The first twelve short videos will give you an excellent overview. The next twelve may also be helpful.

In your paper, answer the following questions:

**Question #1 – Simple Interest**

Don took out a $20,000 loan at 18% simple interest, which resulted in a future value of $22,500. How many days was the loan held? Assume a year is 365.25 days.

**Question #2 – Compound Interest**

Ingrid needs $5,000 to purchase camera equipment. She invests $4,000 of her own cash into an account paying 5% interest compounded annually. How many years will be required to earn the $1,000 in interest that she needs?

**Question #3 – Annuity Earnings**Kiki is saving money in an annuity and is earning 10% annual interest compounded semi-annually. If she deposits $2,000 in the account every six months for three years, what will the future value of her account equal? How much interest will she have earned?

The price is based on these factors:

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- Any citation style (APA, MLA, Chicago/Turabian, Harvard)

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