Math Is Fun Forum

FiggelHorn

Member

Registered: 2011-05-21

Posts: 13

Home loans (Math B*PRIMARY SCHOOL)

Okay so I have a math assignment where in I have to type up some spread sheets for my "friend" ect (The details are in the attached pictures I have comleted akk the spreadsheets but now I have to discuss the assumptions I made during the assignment and I can only seem to find one where as some other kids in my class have found 4000 words worth of assumptions. If somebody could just help me find a couple more assumptions then I could finish this hellish assignment! Thank you for your help

Last edited by FiggelHorn (2011-05-21 13:17:41)

Bob

Administrator

Registered: 2010-06-20

Posts: 10,621

Re: Home loans (Math B*PRIMARY SCHOOL)

hi FiggelHorn

Yes I agree; it's hellish; much sympathy.

In any calculations about which methods are best you are assuming

(i)  the interest rates stay the same throughout the period;

(ii) that inflation and house price fluctuations don't cause a difficulty

(iii) that the repayer keeps earning enough to maintain the payments

(iv)  that they are no hidden costs

Any of that of use to you.  (i) is the main one.

Bob

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Children are not defined by school ...........The Fonz
You cannot teach a man anything;  you can only help him find it within himself..........Galileo Galilei
Sometimes I deliberately make mistakes, just to test you!  …………….Bob

MathsIsFun

Administrator

Registered: 2005-01-21

Posts: 7,713

Re: Home loans (Math B*PRIMARY SCHOOL)

Yes, interest rates change all the time.

And Bob mentioned hidden costs. Banks love to get fees for all kinds of things! There may be upfront costs, transaction fees, insurances. How about taxes, too. Accounting costs ... oh gosh nothing moves without having bites taken out of it!

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"The physicists defer only to mathematicians, and the mathematicians defer only to God ..."  - Leon M. Lederman

FiggelHorn

Member

Registered: 2011-05-21

Posts: 13

Re: Home loans (Math B*PRIMARY SCHOOL)

Thank you guys for the help, I handed the assignment in just the other day I'll be sure to let you know what result I get.

Bob

Administrator

Registered: 2010-06-20

Posts: 10,621

Re: Home loans (Math B*PRIMARY SCHOOL)

Yes, that would be interesting.

Bob

---

Children are not defined by school ...........The Fonz
You cannot teach a man anything;  you can only help him find it within himself..........Galileo Galilei
Sometimes I deliberately make mistakes, just to test you!  …………….Bob