When Jacqueline and Keith Sommers were “house hunting” five years ago, the mortgage rates were pretty high. The fixed rate on a 30-year mort- gage was 7.25%, while the 15-year fixed rate was at 6.25%. After walking through many homes, they finally reached a consensus and decided to buy a $300,000, two-story house in an up-and-coming suburban neighborhood in the Midwest. To avoid prepaid mortgage insurance (PMI), the couple had to borrow from family members and come up with a 20% down pay- ment and the additional required closing costs. Since Jacqueline and Keith had already accumulated significant credit card debt and were still paying off their college loans, they decided to opt for lower monthly payments by taking on a 30-year mortgage, despite its higher interest rate. Currently, due to worsening economic conditions, mortgage rates have come down significantly and a refinancing frenzy is underway. Jacqueline and Keith have seen 15-year fixed rates (with no closing costs) advertised at 2.75%, and 30-year rates at 3.75%. Jacqueline and Keith realize that refinancing is quite a hassle due to all the paperwork involved, but with rates being down to 30-year lows they don’t want to let this opportunity pass them by. About two years ago, rates were down to similar levels, but they procrastinated and missed the boat. This time, however, the couple called their mortgage officer at the Uptown Bank and locked in the 2.75%, 15-year rate. Nothing was going to stop them from reducing the costs of paying off their dream house this time! Questions: What is Jacqueline and Keith’s monthly mortgage payment prior to the refinancing? During the first five years of owning their dream home, how much money has the couple paid towards the mortgage? What proportion of this has been applied towards interest? Had the couple opted for the original 15-year mortgage proposal (15 years, 6.25%), how much higher would their monthly payment have been? Under the original 15-year, 6.25% mortgage option, how much total interest would have been paid over the life of the loan?How does this compare with the total interest that would be paid on the 30-year, 7.25% mortgage? If the Sommers had chosen the original 15-year, 6.25% mort- gage proposal, how much tax shelter would they have lost (over the last five years) as compared to the 30-year, 7.25% mortgage? If the house is currently worth $355,000 and most lenders are willing to lend up to 90% of home value, how much excess equity can the Sommers cash out? Should Jacqueline and Keith cash out the excess equity that they have built up? Assume money market rates are 2.15%. If the Sommers had increased each payment by one-twelfth (since the beginning of the loan), what would their current loan balance amount to? Using the assumption in question 8, how many total years would it take for the Sommers to pay off the existing loan? Demonstrate your answer with an amortization schedule. Should Jacqueline and Keith close the 2.75%, 15-year mort- gage? Explain your answer with suitable calculations.
> Answer Exercise 37 if one piece is bent into a square and the other into a circle. Exercise 37: A piece of wire 10 m long is cut into two pieces. One piece is bent into a square and the other is bent into an equilateral triangle. How should the wire be
> A piece of wire 10 m long is cut into two pieces. One piece is bent into a square and the other is bent into an equilateral triangle. How should the wire be cut so that the total area enclosed is (a) a maximum? (b) A minimum?
> A poster is to have an area of 180 in2 with 1-inch margins at the bottom and sides and a 2-inch margin at the top. What dimensions will give the largest printed area?
> The top and bottom margins of a poster are each 6 cm and the side margins are each 4 cm. If the area of printed material on the poster is fixed at 384 cm2, find the dimensions of the poster with the smallest area.
> A Norman window has the shape of a rectangle surmounted by a semicircle. (Thus the diameter of the semicircle is equal to the width of the rectangle. See Exercise 1.1.62.) If the perimeter of the window is 30 ft, find the dimensions of the window so that
> A right circular cylinder is inscribed in a sphere of radius r. Find the largest possible surface area of such a cylinder.
> A right circular cylinder is inscribed in a cone with height h and base radius r. Find the largest possible volume of such a cylinder.
> A right circular cylinder is inscribed in a sphere of radius r. Find the largest possible volume of such a cylinder.
> If the two equal sides of an isosceles triangle have length a, find the length of the third side that maximizes the area of the triangle.
> Find the dimensions of the isosceles triangle of largest area that can be inscribed in a circle of radius r.
> Find the area of the largest trapezoid that can be inscribed in a circle of radius 1 and whose base is a diameter of the circle.
> Find the dimensions of the rectangle of largest area that can be inscribed in an equilateral triangle of side L if one side of the rectangle lies on the base of the triangle.
> Differentiate the function. g(x) = ln(xe-2x)
> Find the area of the largest rectangle that can be inscribed in the ellipse x2/a2 + y2/b2 = 1.
> Find the dimensions of the rectangle of largest area that can be inscribed in a circle of radius r.
> Find, correct to two decimal places, the coordinates of the point on the curve y = sin x that is closest to the point (4, 2).
> Find the points on the ellipse 4x2 + y2 = 4 that are farthest away from the point (1, 0).
> Find the point on the line y = 2x + 3 that is closest to the origin.
> (a) Show that of all the rectangles with a given area, the one with smallest perimeter is a square. (b) Show that of all the rectangles with a given perimeter, the one with greatest area is a square.
> If the farmer in Exercise 18 wants to enclose 8000 square feet of land, what dimensions will minimize the cost of the fence? Exercise 18: A farmer wants to fence in a rectangular plot of land adjacent to the north wall of his barn. No fencing is needed
> A farmer wants to fence in a rectangular plot of land adjacent to the north wall of his barn. No fencing is needed along the barn, and the fencing along the west side of the plot is shared with a neighbor who will split the cost of that portion of the fe
> Do Exercise 16 assuming the container has a lid that is made from the same material as the sides. Exercise 16: A rectangular storage container with an open top is to have a volume of 10 m3. The length of its base is twice the width. Material for the bas
> A rectangular storage container with an open top is to have a volume of 10 m3. The length of its base is twice the width. Material for the base costs $10 per square meter. Material for the sides costs $6 per square meter. Find the cost of materials for t
> If 1200 cm2 of material is available to make a box with a square base and an open top, find the largest possible volume of the box.
> A box with a square base and open top must have a volume of 32,000 cm3. Find the dimensions of the box that minimize the amount of material used.
> A farmer wants to fence in an area of 1.5 million square feet in a rectangular field and then divide it in half with a fence parallel to one of the sides of the rectangle. How can he do this so as to minimize the cost of the fence?
> Consider the following problem: A box with an open top is to be constructed from a square piece of cardboard, 3 ft wide, by cutting out a square from each of the four corners and bending up the sides. Find the largest volume that such a box can have. (a)
> Consider the following problem: A farmer with 750 ft of fencing wants to enclose a rectangular area and then divide it into four pens with fencing parallel to one side of the rectangle. What is the largest possible total area of the four pens? (a) Draw s
> Find the dimensions of a rectangle with area 1000 m2 whose perimeter is as small as possible.
> Find the dimensions of a rectangle with perimeter 100 m whose area is as large as possible.
> Find expressions for the first five derivatives of f (x) = x2ex. Do you see a pattern in these expressions? Guess a formula for f(n) (x) and prove it using mathematical induction.
> What is the minimum vertical distance between the parabolas y = x2 + 1 and y = x - x2?
> Produce graphs of f that reveal all the important aspects of the curve. In particular, you should use graphs of f ’ and f ’’ to estimate the intervals of increase and decrease, extreme values, intervals of concavity, and inflection points. f(x) = 6 sin x
> Produce graphs of f that reveal all the important aspects of the curve. In particular, you should use graphs of f ’ and f ’’ to estimate the intervals of increase and decrease, extreme values, intervals of concavity, and inflection points. f (x) = x6 - 5
> Produce graphs of f that reveal all the important aspects of the curve. In particular, you should use graphs of f ’ and f ’’ to estimate the intervals of increase and decrease, extreme values, intervals of concavity, and inflection points. f (x) = 22x6 +
> Produce graphs of f that reveal all the important aspects of the curve. In particular, you should use graphs of f ’ and f ’’ to estimate the intervals of increase and decrease, extreme values, intervals of concavity, and inflection points. f (x) = x5 - 5
> (a) Investigate the family of polynomials given by the equation f (x) = 2x3 + cx2 - 2x. For what values of c does the curve have maximum and minimum points? (b) Show that the minimum and maximum points of every curve in the family lie on the curve y = x
> (a) Investigate the family of polynomials given by the equation f (x) = cx4 - 2x2 + 1. For what values of c does the curve have minimum points? (b) Show that the minimum and maximum points of every curve in the family lie on the parabola y = 1 - x2. Illu
> Investigate the family of curves given by the equation f (x) = x4 + cx2 + x. Start by determining the transitional value of c at which the number of inflection points changes. Then graph several members of the family to see what shapes are possible. Ther
> Differentiate the function. f(x) = log 10 (1 + cos x)
> Investigate the family of curves given by f (x) = xe-cx, where c is a real number. Start by computing the limits as x ( ±∞. Identify any transitional values of c where the basic shape changes. What happens to the maximum or minimum points and inflection
> The family of functions f (t) = C(e-at – e-bt), where a, b, and C are positive numbers and b . a, has been used to model the concentration of a drug injected into the bloodstream at time t = 0. Graph several members of this family. What do they have in c
> Describe how the graph of f varies as c varies. Graph several members of the family to illustrate the trends that you discover. In particular, you should investigate how maximum and minimum points and inflection points move when c changes. You should als
> Describe how the graph of f varies as c varies. Graph several members of the family to illustrate the trends that you discover. In particular, you should investigate how maximum and minimum points and inflection points move when c changes. You should als
> Find dy/dx by implicit differentiation. x2 - 4xy + y2 = 4
> In Example 4 we considered a member of the family of functions f (x) = sin(x + sin cx) that occur in FM synthesis. Here we investigate the function with c = 3. Start by graphing f in the viewing rectangle [0, π] by [-1.2, 1.2]. How many local maximum po
> A company operates 16 oil wells in a designated area. Each pump, on average, extracts 240 barrels of oil daily. The company can add more wells but every added well reduces the average daily ouput of each of the wells by 8 barrels. How many wells should t
> Show that of all the isosceles triangles with a given perimeter, the one with the greatest area is equilateral.
> When John Sullivan was hired as chief investment strategist at the New York headquarters of A. M. Smith Inc., he had indicated that one of his main goals would be to significantly expand the fixed-income unit of the firm’s overall investment portfolio. A
> “Boy, this is all so confusing,” said Jason as he stared at the papers on his desk. “If only I had taken the advice of my finance instructor, I would not be in such a predicament today.” Jason Welch, aged 27, graduated five years ago with a degree in foo
> State-sponsored lotteries are extremely popular and highly successful methods by which state governments in many countries raise much-needed funds for financing public expenses, especially education. In Michigan alone, during the year 2015, Michigan Lott
> “Greg, the board of directors’ meeting is scheduled two weeks from today, and I’m depending on you to come up with a realistic and honest appraisal of our company’s position,” said Warren, to his assistant Greg Chapman. “I’m sure that there’s more to us
> “Numbers! I need to see numbers!” exclaimed Marcus in response to com- ments made by the assistant vice-president of Finance, Jeff Smith. Marcus Lenovo, president and chief executive officer of Duralex Inc., had been instrumental in significantly increas
> Andy Gillian, the owner of Gillian Pool & Spa Supplies, paced up and down the balcony of his luxurious Victorian home, overlooking a beautiful backyard, which housed a full-size pool/spa and a sprawling, luscious, green lawn. What was worrying Andy w
> The Ultra Cable Corporation, headquartered in Chicago, Illinois, had thus far enjoyed a fairly steady run-up in revenues and profits. Two years ago, it hired Ron Swenson away from the competition to assist the president, Tom Gray, in navigating the compa
> “It’s amazing how much difference there is in the way proposals are presented at two different firms,” said Art Monk to his assistant, Russell Jacobs, as he pointed to the stack of capital investment proposals piled on his desk. “We sure have our work cu
> Howard Cook could hardly wait to get back to his corporate headquarters in Philadelphia, Pennsylvania, and share all the useful information that he had gathered on performance evaluation with his colleagues in the finance department. Howard was vice pres
> As Cecil shuffled through the stack of files on his desk and clicked away on his mouse, his mind kept racing back to what Jason, his boss, had said to him at the last budget meeting. “We can only fund two or three new projects over the next year,” he sai
> Richard Ponting could feel the pressure as he walked into the executive boardroom with his briefcase containing the data and slides pertaining to his latest proposal. The last couple of years had not been very good for him. Two of the projects that he ha
> When Jenny opened her full-service salon and day spa three years ago, she knew that she would have to make some difficult choices regarding the hiring and firing of qualified professionals such as cosmetologists, estheticians, nail technicians, and massa
> If there was one thing the folks at Creative Products Corporation (CPC) knew well, it was how to come up with useful and unique products in the midst of economic adversity. With current year revenues considerably lower and profit margins shrinking due
> When Wayne concocted his cleaning compound some 20 years ago, all that his wife, Corrine, and he were trying to do was to come up with a sweeter, gentler yet tougher, cleaning product. Little did he realize that someday he would be the proud owner of a m
> Alex Peterson, president of Peterson Investments Inc., was faced with a major decision. One of the firms that his company had invested in, Durawear Corporation, was under severe financial distress. It had therefore sent out a proposal for reorganization,
> It was late Sunday night, and Jassir Amor was getting weary. The big presentation was set for 8 am the next day, and Jassir kept remembering what Greg LeBlanc, the chairman of the mergers and acquisitions (M&A) committee had said to him: “The board membe
> It was a hot, humid afternoon in April. Kirk could feel the pressure mounting. The memo on his desk read, “Please see me immediately!” Kirk knew that, sooner or later, his boss, Brian Daltrey, was going to ask him to implement some quick remedies to impr
> “We better get started on this report,” said Hal to his assistant, Roger, as he straightened up in his seat and fired up his laptop computer. “I’m sure Henry will expect a detailed analysis first thing Monday morning.” Hal Burton, vice president for Inte
> “What do you mean we’ve used up all our cash and lines of credit? I don’t get it! I thought we had a healthy financial position as per last year’s financial statements. How could this have happened, Patrick?” said Donald Hunt to his chief accountant. “If
> It was the end of the fourth quarter. The financial statements had been prepared and circulated to the directors of NuSkin Products Inc. (Tables 2 and 3). The firm’s revenues had surpassed the previous quarter’s revenues by over 20%, and the annual sales
> What is the equivalent of native advertising in commercially released movies?
> Why do you think officers and directors of accused companies accept dissent decrees rather than contest accusations at trial?
> Is thinking about committing a crime illegal? The law underlying the case against Microsoft is the Electronic Communications Privacy Act, which was enacted three years before the invention of the World Wide Web. Should that law still apply today? Why or
> Should a manager for an LLC respond to employee complaints of discrimination any differently from a manager at a corporation, a partnership, or a sole proprietorship? Why or why not?
> Consider a company whose employees include both smokers and nonsmokers. The smokers take numerous paid smoking breaks, while the nonsmokers do not. Is there an ethical issue here? Discuss.
> Why might it be fair for the court to hold Coxeter liable for his partner’s fraud?
> Can you think of a way a company can obtain information via an applicant’s social media posts without running the risk of being accused of hiring discrimination?
> How can a company, whether an LLC or some other business form, reduce the chances of discrimination lawsuits?
> How might a couple who enjoy purchasing virtual and digital goods together avoid property division issues in the event of a divorce?
> To what extent must attorneys reveal to their clients where confidential data are stored?
> Radiah Givens was involved romantically with Joseph Rosenzweig. She moved into an apartment on which he made the down payment. She signed the mortgage, but he made the payments and paid household expenses. They later married. She had their marriage annul
> Which companies in Europe do you think may have pressured the European Union to lodge its antitrust complaint against Google?
> At what point might the predicted benefits of a new private commercial endeavor outweigh the constitutional requirement of a taking only for public use?
> How do online escrow services reduce Internet fraud?
> Is it fair that property or wage garnishments may “surprise” a judgment debtor?
> 1. After the initial sequencing change, West Bank provided its customers with a document titled “Miscellaneous Fees” in which a footnote stated, “Checks written on your account will be paid in order daily with the largest check paid first and the smalles
> Does having a digital wallet in an iPhone, Android-based phone, or other smartphone entail more security risks than carrying a physical wallet? Explain.
> Imported beer is not the only product whose labeling may be misleading. For instance, although BMW is a German brand, most BMW X3s and X5s purchased in the United States are actually manufactured in South Carolina. Are there any legal or ethical issues i
> Why does the Bankruptcy Code provide that student loans should not be dischargeable unless there is undue hardship? What argument can be made in favor of allowing student loans to be dischargeable?
> Under what circumstances would you, as a business owner, choose to aggressively defend your business against a customer’s liability lawsuit?
> Some argue that if online retailers are required to collect and pay sales taxes in jurisdictions in which they have no physical presence, they have no democratic way to fight high taxes in those places. Is this an instance of taxation without representat
> To download a specific application (app) to your smartphone or tablet device, usually you have to check a box indicating that you agree to the company’s terms and conditions. Most individuals do so without ever reading those terms and conditions. Print o
> Within Instagram’s current terms of service there is a statement “We may not always identify paid services, sponsored content, or commercial communications as such.” Is it ethical for Instagram to post advertisements without identifying them as advertise
> Why might those entering into contracts be worse off in the long run if the courts increasingly accept impossibility of performance as a defense?
> What might happen if arbitration clauses were prohibited in all consumer contracts?
> If you are running a business, why would you opt to include overly broad waivers in your contracts with consumers?
> How does a manager determine the optimal amount of legal research to undertake to prevent her or his company from violating the many thousands of federal regulations?
> Why might a corporation’s managers agree to pay a large fine rather than to be indicted and proceed to trial?
> Does a manufacturer have to create safety warnings for every product? Why or why not?
> Some companies use internal social media networks for work-related employee communications. Would the same legal rules that apply to monitoring public social media platforms, such as Twitter and Facebook, also apply to company-provided social media platf
> To protect themselves, manufacturers have been forced to include lengthy safety warnings for their products. What is the downside of such behavior?
> Must business owners in all states have to provide the same benefits to employees in a same-sex union as they do to heterosexual couples?
