Financial Algebra Advanced Algebra With Financial Applications 2nd Edition Robert Gerver, Richard J. Sgroi - Solutions

Use the following 25 consecutive days’ closing prices for AT&T to determine linear, quadratic, cubic, and quartic regression equations. What trends do you see? What are your predictions for the closing price on the 26th trading day? Starting with 1/27 as day 1, 1/28 as day 2, etc., use the
Talia bought a $5,000 Pelts Corp bond. The bond pays 5.95% annual interest. How much will Talia receive in interest if she holds the bond for 11 years?
Write the ticker symbols for each situation.a. 36,000 shares of ABC at a price of 37.15, which is $0.72 higher than the previous day’s closeb. 1,240 shares of XYZ at a price of $9.17, which is $1.01 lower than the previous day’s close
Patrick sold his shares of AT&T (T).a. How many shares did he sell?b. For how much did each share sell?c. Based on Patrick’s sale, what was the closing price of T on the previous trading day?
Maria is a stock broker and has been following transactions for Ford Motor Co (F). On Tuesday, the last trade of the day for Ford was posted on the ticker as $12.47. On Wednesday, the last trade of the day was $0.56 higher than Tuesday’s close for a purchase of 5,600 shares of Ford. Write the
A stock that was selling for x dollars per share underwent a y-for-p split. It was originally paying an annual dividend of d dollars per share. Express the annual dividend after the split algebraically.
Dorothy purchased x thousand shares of Best Buy Company Inc. (BBY) at y dollars per share. This purchase price reflected a decrease of z dollars from the previous day’s close. Express the ticket symbols algebraically.
Isaac follows the market action of Google Inc. He has watched the prices for 2 consecutive days. The information he collected is given in the table. Do the September 23 numbers reflect a positive or negative money flow? Explain. Date Sept. 23 Sept.
In 1990, taxpayers used the following tax schedule.a. Compare the tax of a head of household whose taxable income in 1990 was $120,000 with the tax of a head of household who earns the same amount using the tax schedule from Exercise 6.b. What percent of the taxable income was the tax in each
Interpret the quote in the context of your own home.There’s no place like home.
What does this quote mean to you when viewed in the context of what you learned in this section?Home is a place you grow up wanting to leave, and grow old wanting to get back to.
Interpret the quote in the context of what you learned about home maintenance in this section.
Explain how this quote can be interpreted in light of what you have learned.What is more agreeable than one’s home?
Read the quote at the beginning of this section. Interpret the quote in terms of what you have learned about discount points.People are living longer than ever before, a phenomenon undoubtedly made necessary by the 30-year mortgage.
Interpret the quote in the context of what you think the difference is between a house and a home.A good home must be made, not bought.
The Smiths took out a $130,000, 30-year mortgage at an APR of 3.4%. The monthly payment was $576.53. What will be their total interest charges after 30 years?
Three years ago, Jerry purchased a co-op. This year his monthly maintenance fee is $1,397. Twenty percent of this fee is for Jerry’s property taxes. How much will Jerry pay this year in property taxes?
The Lamberti family is building a rectangular deck that measures 30 feet by 22 feet. They need to run an electric line across the diagonal, underneath the deck. How long is the diagonal of the deck, to the nearest foot?
Del is buying a $250,000 home. He has been approved for a 3.75% mortgage. He was required to make a 15% down payment and will be closing on the house on July 15. His first mortgage payment is due on August 1. How much should he expect to pay in prepaid interest at the closing?
Ricky took out a $268,000, 30-year mortgage at an APR of 4.34%.a. What is the monthly payment to the nearest cent?b. What will be his total interest charges after 30 years, to the nearest thousand dollars?
Determine the cost of the points and the new interest rate for each loan amount and interest rate. Assume each point costs 1% of the loan amount.a. $400,000, original APR 4.1%, 1 point with a 0.2% discountb. $250,000, original APR 3.95%, 2 points with a 0.25% discount per pointc. $300,000, original
If you borrow $220,000 at an APR of 3.5 for 25 years, you will pay $1,101.37 per month. If you borrow the same amount at the same APR for 30 years, you will pay $987.90 per month. a. What is the total interest paid on the 25-year mortgage?b. What is the total interest paid on the 30-year
Three years ago, Jerry purchased a co-op. This year his monthly maintenance fee is $1,397. Twenty percent of this fee is for Jerry’s property taxes. How much will Jerry pay this year in property taxes?
Sara is setting up a volleyball net in her backyard. The poles to hold the net up are 10 feet high. Sara needs to run a wire from the top of the pole to the ground to help make sure that when players hit the net, the pole doesn’t fall down. This wire is called a guy wire.a. If Sara runs the wire
Keisha is purchasing an apartment for $180,000. She has been approved for a 4.0% mortgage. She put 10% down and will be closing on April 22. Her first payment is due May 1. How much should she expect to pay in prepaid interest? A 1 Enter the loan amount. 3 Enter the day of the month for
Jessica’s financial advisor believes she should spend no more than 28% of her gross monthly income for her rent. She has determined that amount is $1,400 per month. Based on this amount and her advisor’s recommendation, what is Jessica’s annual salary?
Adam is taking out a $197,000 mortgage. His bank offers him an APR of 4.45%. He wants to compare monthly payments on 20- and 30-year mortgages. Find, to the nearest $10, the difference in the monthly payments for these two mortgages.
Rhonda wants to take out a 30-year, $280,000 loan with a 4.4% APR. She is considering purchasing 2 points, which will decrease her APR by 0.125% per point. Each point will cost 1% of her loan. Compare her monthly payments with and without the purchase of the points.
A rectangular room has length L and width W, where L and W are measured in feet.a. Express the area in square feet algebraically.b. If carpeting costs x dollars per square yard, express the cost of carpeting this room algebraically.
Three years ago, Jerry purchased a co-op. This year his monthly maintenance fee is $1,397. Twenty percent of this fee is for Jerry’s property taxes. How much will Jerry pay this year in property taxes?
Ed is setting up the locations of the corners of a 16-foot by 30-foot rectangular deck he is going to build in his backyard. To make sure he has a perfect rectangle, he checks to make sure the diagonals are the same. What should the length of each diagonal be?
This spreadsheet can be used to calculate the amount of prepaid interest a buyer will need to pay at the closing. Write formulas for cells B9, B10, and B11.
Eduardo owns a co-op. This year his monthly maintenance fee is m dollars. Twenty-seven percent of this fee pays for Eduardo’s property taxes and 11% pays for the mortgage on the entire development. Both of these expenses are tax deductible. Express the amount that is tax deductible algebraically.
J.P. has been offered a 20-year, $350,000 loan with a 3.9% APR. If he purchases 1 point, his APR will reduce to 3.7%. How much will his monthly payment savings be?
The assessed value of the Weber family’s house is $186,000. The annual property tax rate is 2.15% of assessed value. What is the property tax on the Webers’ home?
The Jacobs Family owned a condo in Bethpage Acres. They bought it for $130,000 6 years ago and sold it last week for $195,000. Who keeps the profit from the sale?
Jorge is installing a staircase so he can have access to his attic. The rise of the stairs is 8 inches and the run of each stair is 11 inches. What is the slope of the staircase, expressed as a fraction?
Jason is closing on a $430,000 home. He made a 13% down payment and is borrowing the rest. What is the approximate range of costs that he might expect to pay at the closing?
A gazebo in the shape of a regular decagon (10 sides) has side length s and apothem a. Express the area of the floor A, algebraically.
Toni purchased 3 points, each of which reduced her APR by 0.125%. Each point cost 1% of her loan value. Her new APR is 3.2%, and the points cost her $8,100.a. What was the original APR?b. What is her principal?
The Americans with Disabilities Act (ADA) states that ramps for wheelchairs should have a slope of 1/12 or less. The Glen Head Boys Club built a ramp for a local school. The dimensions of the ramp are shown below.a. What is the height of the ramp at point B? Round to the nearest tenth.b. What is
The monthly payment on a mortgage with a principal of p dollars is m dollars. The mortgage is taken out for y years. Express the interest I as a function of p, m, and y.
Ethel rented an apartment from a landlord in Sullivan County. Her rent was $1,200 per month until she moved out last week. The new tenants pay $1,350 per month. Represent the rent increase as a percent, to the nearest tenth of a percent.
Becky was told that based on the price of her home, her approximate closing costs would range from $4,000 to $12,000. How much was the price of her home?
Brianna just signed a lease on a rental apartment. The current rent is $1,330 per month, and she estimates a 6% increase each year. Use her estimate to predict the sum of the next 5 years’ worth of monthly rental expenses. Round to the nearest thousand dollars.
Dylan purchased A points, each of which reduced his APR by B%. The cost per point was 1% of the loan amount. His new APR is C%, and his points cost him D dollars. Write an algebraic expression for:a. The original APRb. The principal
Caroline and her mom are building a skateboard ramp for their driveway. The angled ramp is 20 feet long. It starts on ground level and ends at a height of 1.5 feet. What is the angle of elevation of the ramp? Round to the nearest tenth.
The bank offered Annette a $380,000, 30-year mortgage at 3.54%. She is deciding whether to purchase 2 points to reduce her APR by 0.25% per point. Each point will cost 1% of the loan value.a. Calculate her monthly payments with the points.b. Calculate her monthly payments without the points.c.
The Gray family is moving into a new home and they are using a wooden ramp to roll furniture over the stairs at the entrance. The ramp, AB, is shown over the staircase in the diagram.a. How far is the bottom of the ramp, A, from the base of the house, C?b. What is the slope of the staircase?c. What
Rob has been approved for a $275,000, 15-year mortgage with an APR of 2.9%. Using the mortgage and interest formulas, set up a table with the above headings and complete the table for the first 2 months.
The Maxwell family took out a $275,000, 20-year mortgage at an APR of 4.1%. The assessed value of their house is $9,400. Keep in mind that assessed value is the value used for property tax purposes, and not necessarily an indication of the market value. The annual property tax rate is 90.82% of
The credit union offered Zach a $200,000, 10-year loan at a 3.625% APR. Should Zach purchase 1 point or no points? Each point lowers the APR by 0.125% and costs 1% of the loan amount. Justify your reasoning.
The Joseph family took out a $175,000, 25-year mortgage at an APR of 4%. The assessed value of their house is $9,000. The annual property tax rate is 97.22% of assessed value. What is the annual property tax?
Use a spreadsheet to generate the first year of payments in a loan amortization table for a $200,000, 10-year mortgage with an APR of 3.4%.
A guy wire is helping to support a utility pole in Ilsi’s backyard, as shown in the diagram. The point U is located 3 feet below the top of the pole.a. What is the angle of elevation of the guy wire? Round to the nearest degree.b. What is the length of the guy wire? Round to the nearest tenth.c.
The Maxwell family took out a $275,000, 20-year mortgage at an APR of 4.1%. The assessed value of their house is $9,400. Keep in mind that assessed value is the value used for property tax purposes, and not necessarily an indication of the market value. The annual property tax rate is 90.82% of
Marina wants to take out a $500,000 loan to purchase a new home. The bank offers a 25-year loan with an APR of 3.8%. If she purchases 1 point for 1% of the value of the loan, she will reduce her APR by 0.3%.a. What is her monthly savings with the point purchase?b. When will she break even?c. Assume
Elizabeth (from Exercise 9) is designing another backyard pond for her company. She follows the same procedure to find the area. She first creates an x by y rectangle to frame her pond design. She generates 10,000 random points inside the rectangle and p points land inside the pond. Express the
The Jordans are considering buying a house with a market value of $250,000. The assessed value of the house is a dollars. The annual property tax is $2.45 per $100 of assessed value. What is the property tax on this house?
Mickey uses a mirror and similar triangles to find the height of a light pole near her driveway. The diagram describes her method.She has her friend move the mirror until she can see the top of the pole as a reflection in the mirror. Due to the law of reflection in physics, angles 1 and 2 are
Use a spreadsheet to generate the last year of payments in a loan amortization table for a $600,000, 15-year mortgage with an APR of 3.5%.
Lincoln Towers Bank offers borrowers a zero closing cost loan. Each negative point reduces the bank’s closing costs by 1% of the principal and increases the APR by 0.125%. Ibraheem wants to borrow $450,000 from Lincoln Towers at 3.48% for 20 years. The estimated closing costs are $9,000.a. How
Shannon took out a $300,000, 15-year mortgage with an APR of 3.65%. The first month she made an extra payment of $400. What was her ending balance at the end of that first month?
Kennesaw Credit Union offers a 4.25%, 15-year mortgage. Sadie wants to borrow $300,000 and purchase enough negative points to eliminate her $9,000 closing costs. Each point increases her APR by 0.125% and reduces the bank's closing costs by 1% of the principal.a. How many points will she need?b.
Miguel and Cara had an adjusted gross income of a dollars. Miguel just got a $3,000 raise and Cara got a $1,500 raise. They are considering moving to a new house with monthly mortgage payments of m dollars, annual property taxes of p dollars, and an annual homeowner’s premium of h dollars.
Monthly rent at Countryside Co-ops has increased annually, modeled by the exponential equation y = 2,155(1.062)x-1. What was the percent increase per year?
The square footage and monthly rental of 10 similar one-bedroom apartments yield the linear regression equation y = 0.775 x 1950.25, where x represents the square footage of the apartment and y represents the monthly rental price. Grace can afford $1,500 per month rent. Using the equation, what
Examine the loan amortization table for the last 5 months of a $500,000, 15-year mortgage with an APR of 4.05%. Determine the missing table amounts. Payment
The monthly rent for a one-bedroom apartment at North Shore Towers for 6 consecutive years is shown in the table.a. Represent the years using the numbers 5, 6, 7, 8, 9, 10 to 11, 12, 13, 14, 15, 16. Draw a scatter plot for the data.b. Find the exponential regression equation that models the rent
Examine the loan amortization table for a $210,000, 15-year mortgage with an APR of 3.8%. The borrower paid an extra $100 each month toward the principal. Determine the missing amounts. Payment Beginning Monthly Extra Towards Towards Ending Balance Payment Payment Interest Principal
Examine this portion of an amortization table for an adjustable rate mortgage that had a 1-year initial rate period of 2.87% and increased to 3.37% after that period ended. Determine the missing amounts. Interest Payment Beginning Monthly
The square footage and monthly rental of 10 similar two-bedroom apartments yield the linear regression equation y = 1.165x + 615.23, where x represents the square footage of the apartment and y represents the monthly rental price.a. Use the equation to determine the monthly rent for an apartment
Ivonne has a gross bimonthly income of $2,900. She pays 16% in federal and state taxes, puts aside 12% of her income to pay off her school loan, and puts 5% of her income aside for savings. She is considering an apartment that will rent for $1,700 per month.a. Does this monthly rental fee fall
We Move U charges for moving according to the rate schedule shown. Nicky is moving a distance of 150 miles and needs 7 hours of loading/unloading and 5 hours of packing/unpacking. What will her moving cost be if the service also charges 8% tax on the total?$85 per hour for loading/unloading
Ron has a homeowner’s insurance policy, which covers theft, with a deductible of d dollars. Two bicycles, worth b dollars each, and some tools, worth t dollars, were stolen from his garage. If the value of the stolen items was greater than the deductible, represent the amount of money the
Tom took out a $440,000, 15-year adjustable rate mortgage with a 2.85% initial 6-month rate. The amortization table for the initial rate period is shown. After the first 6 months, the rate went up to 3.45%. Calculate the next row of the table. Payment
Van 4 Hire charges for moving according to this rate schedule. Nicky is moving a distance of D miles and needs A hours of loading/unloading and B hours of packing/ unpacking. Write an algebraic expression that represents her total moving cost.L dollars per hour for loading and loading serviceP
Siegell’s Locksmith Shop is taking out a mortgage on a new building. It is going to be an interest-only, 12-year balloon mortgage for $350,000. The APR is 3.35%. The last payment will be the balloon payment of the full principal.a. Find the total interest for the 12-year mortgage.b. Find the
Johnny took out a $500,000, 30-year mortgage with an APR of 4.15%. The first month he made an extra payment of $1,000. What was his balance at the end of that first month?
An interest-only balloon mortgage for a principal of p dollars for 18 years has total interest of t dollars. Express the amount of each monthly payment before the balloon payment algebraically.
Mark and Beth are looking at four different homes. They created this spreadsheet to estimate escrow calculations more easily. They will pay the property tax and homeowner’s insurance each month with their mortgage payment. The bank will hold these two amounts in escrow until those bills need to
Joanne and Matt have been approved for a $350,000, 15-year mortgage with an APR of 4.25%. Using the mortgage and interest formulas, set up a 2 month amortization table with the following headings and complete the table for the first 2 months. Payment Beginning Monthly Towards Towards
Use the spreadsheets from Sections 7-4 and 7-6 to compare the following two situations after an 8-year period.Total amount paid and total amount paid to principal for a $250,000, 18-year mortgage with an APR of 3.35%Total amount paid for a $1,700 monthly rent that has an annual increase of 1.8%Data
Use the spreadsheets from Sections 7-4 and 7-6 to compare the following two situations after a 7-year period.Total amount paid and total amount paid to principal for a $370,000, 20-year mortgage with an APR of 4.15% Total amount paid for a $2,600 monthly rent that has an annual increase of 2%Data
Michelle took out a $370,000, 30-year, adjustable-rate mortgage with a 2.8% initial 6-month rate. The amortization table for the initial rate period is shown. After the first 6 months, the rate went up 3.4%. Calculate the next line of the amortization table. Payment
Ryan wants to take out a $520,000 loan with an APR of 4.15% for 20 years. He can purchase a discount point for 1% of his principal that will decrease his APR by 0.125%. If Ryan purchases 3 points, after how many months will he breakeven?
Millie is considering a zero closing cost loan. She wants to borrow $600,000. Her lending institution is offering her a 3.49% loan for 25 years. She has the option of purchasing negative points, which will increase her APR by 0.125% for each 1% of her principal credited to her. To cover the
The Lennon family is renting an outdoor movie screen for their backyard party. The screen is 12 feet high, and it needs to be tethered to the ground with four guy wires 15 feet long.a. How far from the screen must they attach the guy wires?b. What is the angle of elevation of each guy wire?c. They
Johnny took out a $500,000, 30-year mortgage with an APR of 4.15%. The first month he made an extra payment of $1,000. What was his balance at the end of that first month?
Let the Medicare tax withheld in Box 6 be represented by x as shown. Write an algebraic expression that represents the federal income tax withheld assuming that the taxpayer pays 28% of his income in federal taxes and that there are no tax-deferred entries for the year. Safe, accurate, FAST!
How can the quote be interpreted in light of what you have learned about income taxes in this section?Our forefathers made one mistake. What they should have fought for was representation without taxation.
How can the quote be interpreted in light of what you have learned in this section?They take the money out of your paycheck before you can go out and spend it.
How can the quote be interpreted in light of what you have learned in this section?It is my belief that one’s salary is between an individual and the IRS.
Chiara had $5,700 in out-of-pocket medical expenses last year. Her medical insurance covered 80% of these expenses. The IRS allows medical and dental expense deductions for the amount that exceeds 10% of a taxpayer’s adjusted gross income. If Chiara’s adjusted gross income is $35,432, how much
The Lupos had x dollars in medical expenses. Medical insurance covered 80% of these expenses, so they had to pay 20% of the medical bills. For taxpayers in the Lupos’ age bracket, the IRS allows medical and dental expense deductions for the amount that exceeds 10% of a taxpayer’s adjusted gross
Determine the tax for each filing status and taxable income amount.a. Single $57,723b. Head of household $60,950c. Married filing jointly $63,999d. Married filing separately $57,521 If line 43 (taxable Income) Is- At least But less than And you are Single Married Married Head filling filling of
There are seven taxable income intervals in this chart. Let x represent any taxable income. Express those intervals in tax schedule notation, compound inequality, and interval notation. Schedule X-If your filing status is Single If your taxable income
Joe makes an hourly wage of $14.10. For hours worked over 40, he is paid at a rate of $21.15 per hour. Last week, Joe worked 45 hours.a. What is Joe’s gross pay for this pay period?b. What is Joe’s Social Security deduction?c. What is Joe’s Medicare tax deduction?d. Joe’s other deductions
William Base’s employer withheld $13,956.95 in federal income tax. After completing his return, William determined that his tax responsibility is $11,874.82. Will William get a refund or does he owe the government money?
Maria and Don had $20,800 in medical expenses. Their family medical insurance covered 60% of these expenses. The IRS allows medical and dental expense deductions for the amount that exceeds 10% of a taxpayer’s adjusted gross income. If their adjusted gross income is $101,598, how much can they

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Financial Algebra Advanced Algebra With Financial Applications 2nd Edition Robert Gerver, Richard J. Sgroi - Solutions

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