Patient Scenario

Question

Please read the patient scenario in the attached syllabus and complete patient scenario assignment.

Addresses Learning Outcomes:

• Use knowledge of biological principles and the Scientific Method to ask and answer relevant questions about human health and disease
• Analyze information to distinguish between diseased and healthy structure and functioning.
• Analyze how internal and external factors cause disruption of healthy body function, leading to disease and disorders.

Question

A house is for sale for $250,000. You have a choice of two 20-year mortgage loans with monthly payments: (1) if you make a down payment of $25,000, you can obtain a loan with a 6% rate of interest or (2) if you make a down payment of $50,000, you can obtain a loan with a 5% rate of interest. What is the effective annual rate of interest on the additional $25,000 borrowed on the first loan?

Question

There are 3 options that you have to choose. First, you can receive $100,000.00 per year for the next 2 years. Second, you can receive 27,000.00 cash today plus 85,000.00 per year for the next 2 years. Or you can receive $9,500 per year in perpetuity. The interest rate is 5% compounded monthly. Which option would you take? Explain why and show all formula and workings.