COMPOUND INTEREST Mini- Project



Applied Mathematics K. Koclanes

Due 3/25

COMPOUND INTEREST Mini- Project

What is your top pick for college next year? How do you plan to pay for your education? In the event that you may have to take out a student loan we will explore the potential cost of doing so. There are many different models and circumstances to student loans. They are generally personalized based on the school you attend and the current financial background of you or your parents. We will use a generic model just to raise awareness of how expensive your college education might be, initially and after interest.

Explore the website of your future college and find the cost of the following: based on 2 semesters a year for 4 years

Tuition cost (15 credits a semester)

Room and Board (living on campus for all years)

Meal Plan

Average cost of books for each semester

Assuming the characteristics of your loan is a per annum rate of 5.4% determine the cost of a student loan to pay for 4 years of college if the simple interest is over a period of 10 years.

I = Prt

Find the total amount, A, which will? (A = P + I) If paid out for 10 years, calculate a monthly payment: (A/ (12t))

________________________________________________________________________

Finalize your information as a report: Including a title page (Name, Date, Class, and Title), a page which organizes all the information you gathered and used (spread sheet or other), a page portraying your mathematical calculations, a page for the discussion of your findings and some other expenses you may run into while going to college and what options you would consider in managing your finances (reflection).

Be sure to include the resources (bibliography) used to gather your pricing information.

* NOTE: This model is just to make us aware of the expense of our college education and the impact of compound interest on initial amounts. It is not the most accurate model and does not reflect your exact situation as there are many different types of financial aid models.

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