Monday, May 19, 2008

Thursday May 15 Scribe Post

So Thursday in class we had a short 3 question quiz that we later went over and corrected:

Question 1 was on emily wishing to obtain a new car. There were 2 options in this question for emily to buy her car, and you have to calculate witch option will cost emily the least.

In question 2 we had to calculate how much a farmers $60000 tractor would be worth after 6 years, at a 8% depreciation rate
per year.

The 3rd question was on a investment of $500 at the beginning of every month, since the payment is at the beginning of each month you have to change PMT from END to BEGIN ( shown in the picture on the left) .
We also went over the homework from the day before with two questions on Mr. T's family moving into another house where we had to find the total additional costs of moving. And Ms. Jonhston buying a home where we had to find if a 20 or 15-year mortgage would be better for her.
We also started learning about net worth(equity) which is the difference between assests and liabilities.
Net Worth = Assests - Liabilities
Assests are everythin of value that you own, and liabilities being any debt you owe.
We learned about the 3 catagories of assests there are: Liquid Assests, Semi-Liquid Assests, and Non-Liquid Assests
And 2 types of Liabilities: Short Term Debts, and Long-Term Debts.

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