Unit 6 Discussion - Explain which of the two options below...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Unit 6: Unit 6: Compound Interest, Future Value, and Present Value - Discussion When you are ready, respond to one of the discussion questions below. Be sure to comment on your classmates' posts. You should post throughout the week to give your classmates the opportunity to respond to your ideas or to give assistance on problems with which you may have issues. You must post at least two substantial replies to your classmates. The discussion rubric in our course syllabus includes a range of points. To be eligible for a high mark for discussion, you must respond substantially to at least two classmates' postings for each thread. Discussion Discussion Question 1:
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Explain which of the two options below results in a lower balance after 6 months on a debt of $1000. 1. Annual simple interest of 12% applied at the end of the 6 months. 2. A monthly interest rate of 1% applied at the end of each month and before the start of the next month. Discuss why the two methods result in different results. Discussion Question 2: You need to get a loan from the bank to buy a new car and your bank is offering two options. One option charges a lower monthly payment than the other option but it takes longer to pay off the loan. Discuss which option you would take and why. When might you take the other option?...
View Full Document

This note was uploaded on 11/15/2011 for the course MATH MM255 taught by Professor Douglascopeland during the Fall '11 term at Kaplan University.

Ask a homework question - tutors are online