Name: Last ______________________ First_______________________ Section # _________

ID # __________________________________(at least the last 4 digits)

Signature Assignment Math 1315

1. Use Gauss-Jordan Elimination to solve the following system of equations . You must show all of

your work identifying what row operations you are doing in each step. Do not use a graphing

calculator in order to reduce the matrix or you will not receive credit for the problem..

2x – 4y + 6z = – 2

– x + 3y – 3z = 1

– x + 2y + 2z = -4

x = _________

y = _________

z = _________

3. Mike has $235,000 he wishes to invest in two rental properties. One yields 10% and the other

yields 12%. For safety he wants to split his investment between the two properties instead of

investing all of his money in the higher yielding rental property. If his goal is to achieve a total income

earned of $25,000 a year from these two properties, how much money should he invest in each

property. You must show your work illustrating how you calculated your answer in order to get credit

for this problem.

Amount invested in property yielding 10% ________________

. Amount invested in property yielding 12% ________________.

4. A. What would be your monthly mortgage payment if you pay for a $250,000 home by making a

20% down payment and then take out a 3.74% thirty year fixed rate mortgage loan where interest is

compounded monthly to cover the remaining balance. All work must be shown justifying the following

answers.

Mortgage payment = _______________

B. How much total interest would you have to pay over the entire life of the loan.

Total interest paid = __________

C. Suppose you decided to pay for this house by taking out a fifteen year 3.04% fixed rate mortgage

instead of the thirty year 3.74% fixed rate mortgage. What would be your required monthly

mortgage payment for this 15 year mortgage assuming you still make the same 20% down

payment.

D. How much interest would you have saved by taking out the fifteen year fixed rate mortgage

instead of the thirty year fixed rate mortgage.

Interest saved = _______________

E. Taking the above data into account, write a short paragraph comparing what you feel are

the pros and cons of each type of mortgage.