INSTRUCTIONS This week's RATEL is about thinking about how we could use the financial tools we have been covering. 1. Choose TWO of the three topics. 2. Then, set-up the scenarios. They can be personal or made-up, about your life or about a business. They can be very realistic, or more chance-related (like winning the lottery or buying a dream house). 3. After that do the calculations. Make sure to include the work for doing the calculations in your RATEL submission. 4. Finally, check that they answer you get is reasonable. (For example, if you get a mortgage payment of $200/month for 30 years on a million dollar house, this is not reasonable; in this case, go back and look for an error.) Here are the topics to chose from and questions to answer about each: 1. Future Value Annuities (Saving Regularly in an Interest-Earning Account. Assume it's Ordinary, meaning everything happens at the end of the month). What are you saving for? How much is deposited each period? What is the interest rate? How frequently are the compounding/investing periods? For how long will you be saving? How much will be in the account at the end? 2. Present Value Annuities (Getting Regular Disbursements. Also assume its ordinary). What is the initial amount of money in the account? How did you acquire this money? What will you spend it on? What is the regular disbursement? What is the interest rate? How frequently are the compounding periods/disbursement periods? How long will you get disbursements? 3. Loan. What is the loan for? Home, Car, Business, Credit-Card? How much money is loaned? What is the interest rate? How frequently are the compounding periods/disbursement periods? How much are the payments? The matrix math we have done over the past few weeks can be applied in lots of different business areas. The purpose of this RATEL is for you to write a business story problem that uses matrix multiplication in an area of business you are interested in. STEP 1 Start by reading the "Why do it this way" example from Math is Fun: How to Multiply Matrices (it's about 2/3 of the way down the page.) STEP 2: Then, create a similar problem from an area of business that interests you. You could use prices and days, but you could also use locations or times of day. Your problem could be about worker hours needed, materials used, or advertising. Your problem should consist of: 1. Provide a short description of what your calculation will describe and why you chose this area of business. 2. Show the calculation you will do: It should be a (1 by 3 matrix) ( 3 by 4 matrix), like in the example, or something bigger. Don't make it smaller. Make sure you are setting up the product in a way that's defined. 3. Calculate the product of the matrices. Show your work using matric notation. 4. Explain what the information in each part represents: A. the (13) matrix (or your equivalent) B. the (34) matrix (or your equivalent) C. the answer matrix Because typing up matrix in a text entry box is challenging, please do your work on paper, then scan the file and upload