Quantitative Literacy
Math 1050
In this class we were asked to complete a project in which we examined a mortgage. Using a formula we were able to determine the monthly payment based off of the length of the loan, the interest rate of the loan, the purchase price of the home, and the down payment. We were also able to visualize the amount of money from the monthly payment that went towards both the principal and the interest. Through this excercise it was easy to see how to make better investment desicions and know what type of loan might work best for you.
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Math 1050 Project.pdf Size : 0.444 Kb Type : pdf |
Reflection
It's easy to see how one might become confused and overwelmed when making a huge purchase such as a home. There are so many questions and unknnowns that frighten us. How much will I be able to affoard? What will my monthly payments be? Is this a good investment? These are just a few of the many questions I personally know that I have asked when investing in a home. With this assignment it was easy to see how by applying fairly simple equations and utilizing online mortgage spreadsheets could be greatly benneficial in the home buying process. From the amortization schedule it was simple to see just how long and how much money it would take before the majority of the mortgage payment went towards pricipal. Also, by using a little math we were able to determin the future value of the home and determine if there would be a profit. Overall, this assignment was very benneficial and the next time I either want to sell or buy another house (or any other investment for that matter) I will be sure to apply these pricipals to make a more educated investment.
