D.E.V.

Problem 1:

BELLA has to make a choice between Edward or Jacob. If she chooses Edward, she will either have to marry him before getting serious, or live the way they are. If she chooses Jacob, she will lose Edward forever, or not.

The probability of Bella being with Edward or Jacob is 1/2. There is a 75% chance that she will marry Edward if she chooses him, and a 13% chance she will lose Edward forever.

(a) What is the probability that Bella will choose Jacob and not lose Edward?

(b) What is the probability that she will choose Edward and marry him.

You first want to make a diagram and include the information given in the problem, which will help you out with the questions given...

With (a), the probability that Bella will choose Jacob and not lose Edward, you simply multiply the probability of Bella choosing Jacob (0.5) and the probability of not losing Edward if she chooses Jacob (0.87). You get an answer of 0.435. You can also say 43.5%.

With (b), you take the probability of Bella choosing Edward (0.5) and the probability of her marrying him (0.75), and you should get an answer of 0.375 or 37.5%.


Problem 2:

Leighton wants to drive a small economy car priced at $19 800 before taxes. PST is 7% and GST is 5%. She has $3 500 to use as a down payment for buying. If she buys the car, she will get a 4 year loan at 8.5% to pay for it. What is the total cost of buying the car?

The cost with tax is going to be $22 176, because $19 800 (the price of the car before taxes) multiplied by 1.12 (7% PST & 5% GST).

After the down payment, it will be $18 676, because $22 176 subtracted by $3 500.

Using your graphic calculator go to APPS, Finance, and select TVM Solver.

N=48
I%=8.5
PV=18676
PMT=460.33
FV=0
P/Y=12
C/Y=12

You want to find the monthly payment in order to find the total cost. Therefore since it is a 4 year loan you multiply 48 (12 x 4) and $460.33 (monthly payment) and add $3 500 (down payment) to get the total cost of $25 595.84.

Reflection...

I chose the concepts I did to create my problem set because I felt most comfortable with them. Over the course I started to fully understand what we were actually doing which helped a lot. I'm not quite sure how these problems provide an overview of my best mathematical understanding of what I have learned so far. I hope I annotated them well enough for others to understand and follow along. Not only did I learn from this assignment, I have learned a great bunch from this course. This assignment actually made me look back at my previous notes so it's like I've learned it all over again.