Take Home Final Exam 141

The final exam will due in my office at 12:25 P.M. Friday Dec 22 but you may hand it in earlier. You should work alone on this. Your grade will be based in large part on the clarity of your writing. Do not hand in a messy or illegible paper. Write in complete sentences and do not assume that the reader knows the statement of the question.

I. Explain how to calculate the monthly payment on a mortgage. To explain this fully you will need to explain the formula for summing a geometric series. Illustrate with two examples where you compute the monthly payment on a 30 year and on a 15 year $100,000 mortgage at an interest rate of 6 percent. Is the montly payment for 15 year mortgage twice as much as the monthly payment for a 30 year mortgage?

II. Explain the MiniMax Theorem for matrix games. You will need to explain what is a matrix game, what is a mixed strategy, and what is the value of a matrix game. Use you own words, not the text in the book.

III. Explain one of the following problems from the online problems: 2, 7, 11, 20, 21, 22, 26, 31, 32. (You may do a different one if you get my approval first.) A simple answer is not enough; what is required is an exposition that eliminates all confusion.