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Table of Contents:
Chapter 1 Page 3
Chapter 2 Page 6
Tiling Page 13
Painting Page 15
Fencing Page 18
Chapter 3 Page 22
Summary Page 22
Recommendations Page 23
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Chapter 1
What is Mathematics?
calculus along with the study of number, quality, shape, space and their
addition, subtraction and simple problems. It can be used in the house, whether it is in
building a house, paying off a loan, mortgage or bill, buying a car, planning an event
and even cooking food or buying ingredients. Math is integrated in practically every
We should study maths because it will further push us as people to move forward in
the world. Computer Programmers, Doctors and even Construction workers have to
such as college algebra, statistics, calculus I and calculus II. These classes are applied
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in two different ways for computer programming. The most obvious is using the math
taught to solve complex equations. The less obvious is the skills learned to master
advanced math is similar to the skills required to build complex applications. These
Pediatricians use numbers to calculate the patient’s growth, using growth charts to
assess how well a child is developing physically. Children’s weight and height are
converted from the metric system to the English system, using math to change
Construction workers must use math in a variety of ways while practicing their trade,
is not necessary for construction workers to have an advanced education, they must be
operations. Construction workers must be able to add, subtract, divide and multiply as
well as work with fractions. Construction workers must also use ratios frequently. For
example, when figuring out the proportions of the roof’s length to its height, a
construction worker must be able to divide the length by the height to obtain the
correct ratio.
1) Math is used when calculating the distance with speed and time when
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2) It is used when preparing a dish from a recipe because you may have to
3) Math is used when you are at a store and you have to calculate how much
VAT is going to be added to the product.
4) Math is used to read and understand your bank statements properly when you
get them.
The Scenario
Ms. Jones is a newly promoted property manager of Eddies Wholesale and her
superiors have put her in charge of drawing up a financial proposal on a new location
which they want to open. With the task at hand, Ms. Jones must consult various
lending institutions in order to attain the most cost-effective means to open the new
department store. Included in this proposal, she must look for appropriate loans on
both the prospective land and property. After doing so, she must also include in her
proposal how she will acquire the tiles to use in the new building, the painting of the
inside and fencing needed around the property. Her superiors inform her that they
simply want the most cost effective means for the long term financial path of the
company. Ms. Jones must now use this directive in making her decisions on planning
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Chapter 2
The first step in opening up this branch of this department store was to review the
various financial institutions to see which ones would be suitable for our
circumstances. At this point Ms. Jones already knows the land she is buying is priced
at $120,000 and the desired property on the land is $400,000. With these prices in
mind she consulted many lending institutions but found that Royal Bank of Canada,
Scotia bank and First Caribbean had the best deals. Even so, we needed a bit more
time to thoroughly understand each offer and to calculate which one would be the best
choice.
In this case, Ms. Jones was more concerned with the long term viability of such a
contract so she decided to calculate the interest on this offer using the formula:
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I = P R T /100
I = 120,000 x 10 x 9 / 100
A mortgage of
Deposit: 20%
With this property mortgage, Ms. Jones decided to calculate the interest and the
monthly repayments.
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Amount of Loan (P) = $400,000 - $80,000 = $320,000
= 1344 / 0.7788322162
= $1725.66
The total interest paid over the 30 years to RBC would be:
In total, for both land and property, Ms. Jones calculated that she would have to pay
an interest of:
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Scotia Bank
Ms. Jones then reviewed the second offer from Scotia bank. They proposed that both
land and property could be put on one mortgage, instead of two different contracts.
Deposit: 50%
= 19500 / 0.8857789699
= $22,014.52
The total interest paid over the 15 years for BOTH land and property to Scotia bank
would be:
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First Caribbean
Ms. Jones then considered her last offer from First Caribbean. They told her that she
would have to apply for two separate mortgages on the land and property. The
A mortgage of
Deposit: 10%
= 1890 / 0.6705441264
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= $2818.61
The total interest paid to First Caribbean for the land over the next 16 years:
A mortgage of
Deposit: 15%
Using the mortgage formula, she had worked out the following:
= 1122 / 0.6278171767
= $1787.14
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The total interest paid for the property to First Caribbean over the next 25 years would
be :
In total, for both land and property, Ms. Jones would have to pay First Caribbean:
In examining the results of these calculations, it was noted that First Caribbean had
the lowest interest of all three lending institutions at $268,533.04 over a 25 year
period. On the other hand, while Scotia bank had higher interest to be paid, the total
repayment period was much lower, standing at only 15 years. If Ms. Jones did go with
Scotia bank she would also have to consider that they would require a considerable
deposit on the agreement, 50%! In the end, Ms. Jones decided to go with First
Caribbean as presented the most cost-effective choice over the long term, having
It also must be noted that even though Royal Bank of Canada had the highest interest
of all three lending institutions it had the lowest overall monthly repayment. $1000
per month for the land and $1725.66 per month for the property. If Ms. Jones did
choose this it would represent the lowest cost in the short term cycle. Regardless Ms.
Jones thought that this would be too costly for the long term profitability of the
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Internal Renovations
Tiling
The next aspect of the job would the tiling, painting and fencing of the department
store.
Firstly was the tiling of the inside of the facility. After reviewing the design plans of
the building she knew that the floor dimensions were approximately 218 ft by 170 ft.
She was told by a close friend that Tiles Bargain had high quality tiles as well as
beautiful designs. Having taken that advice, she found herself liking two tiles. Ms.
Jones then decided that she would purchase the one which gave the most value for
money.
The first tile was a square tile of 17 inches at 3.95 per tile.
17 in.
17 in.
The second tile was a rectangular tile of 24 inches by 20 inches for 5.25 per tile.
24 in.
20 in.
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In order to determine which option was less expensive, Ms. Jones had to calculate the
As 1 ft. = 12 inches
= 5336640 in2.
= 289 in2.
= 480 in2.
After adding in 5% extra tiles (923), the total would be 19389 tiles
After adding in 5% extra tiles (556), the total would be 11674 tiles
On doing these calculations one notices that the rectangular tiles (24 in. x 20 in.) are
more expensive per tile but choosing this option would work out to be less costly.
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A larger tile covers more space on the floor and therefore less tiles would need to be
Painting
Ms. Jones decided that she would call on the already existing employees to do the
tiling and painting instead of hiring an outside company. Subsequently, she now had
Again, on the recommendation of a close friend, Ms. Jones considered buying one
gallon of Harris Paint for $60 which would cover 90 ft2 of wall. On the other hand
she could buy one gallon can of paint for $28 from Berger Paint which would cover
80 ft2 of wall. Further consultation with her friend revealed that if she did indeed use
Berger Paint, she would have to use two coats of paint instead of one. She had to
Harris Paint: Value for Money $60 / 90 ft2 = $0.67 per square foot
Berger Paint: Value for Money ($28 x 2) / 80 ft2 = $0.70 per square foot
N.B. It would be $28 x 2 because TWO coats of paint are required to cover the 80
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From these calculations, Harris Paint came up to be less money per square foot; the
option gave better value for money so Ms. Jones chose this paint.
In order to determine how much paint to use, the area of the walls had to be
calculated. Two of the walls had measurements of 170 ft. by 90 ft. (each). The other
90 ft.
170 ft.
Therefore the two Wall A’s have a total surface area of 15300 x 2 = 30600 ft2
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B 115 ft.
218 ft.
Therefore the two Wall B’s have a total surface area of 25070 x 2 = 50140 ft2
Therefore total area of all four walls = 30600 + 50140 = 80740 square feet
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Fencing
Finally, there is the issue of fencing the entire property. Ms. Jones again referenced
the property plans and decided that she would fence the department store as shown in
Department Store
200 m
In the diagram the diameter of the circular fencing is 200 metres. Using the equation
Circumference = TTd, we can find the length of fencing needed for the land.
Ms. Jones then determined where she had to buy the fence from, sadly there was only
one source in the island, BRC, and they sold fencing at $80 per 100 metres. Her
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628.32 / 100 = 6.28 which would round up to be = 7
Ms. Jones was satisfied with this, especially since she had extra fencing left over but
she did not consider that she may have gotten a better deal if she looked outside the
country.
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Financial Proposal
Nevertheless with all of the financial planning complete, she presented to her
superiors, her estimate of how much money would be needed for the:
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Number of 100m fencing x Cost for Each 100 m = Total for Fencing
7 x $80 = $560
Ms. Jones then presented the total funds needed for the opening of this department
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Chapter 3
Summary
In recap, Ms. Jones was chosen as the property manager of a new branch of a
department store. Her responsibilities included seeking out land and property for the
institutions. After reviewing three options, Royal Bank of Canada, Scotia Bank and
First Caribbean, Ms. Jones then decided upon First Caribbean being the best cost-
effective option. Afterwards she then had to choose tiles for the inside of the
department store. For the tiling she considered two options and in the end chose the
rectangular tiles which saved $15,298.05 for the company. Moreover she then had to
decide upon the type of paint and how much paint there needed to be to complete
painting. Ms. Jones selected Harris Paint because it gave the most value for money at
$0.67 per square foot. Finally she then determined how much fence is needed for the
entire perimeter of the property. She calculated this to be $560 for the entire fence
needed. With all of this decided upon, she then presented the total cost to her
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Recommendations
1) Looking back on acquiring land and the property for the department store, Ms.
Jones chose the most cost effective means in the long term, First Caribbean at
$268,533.04 interest over a 25 year period. In spite of this, you may not have
the short term resources to repay the monthly installments of $2818.61 for the
land and $1787.14 for the property so you may want to go with RBC which
had a total monthly repayment of $1000 per month for the land and $1725.66
per month for the property; the lowest monthly fee of all three options. The
trade-off in this case would be higher overall interest with RBC having
weigh his short term resources against the long term profitability of the
might also not care so much about the interest but instead be thinking about
the shortest repayment period possible. In this case, Scotia Bank would be the
best alternative as its agreement only had 15 years to repay. If you do go with
this option, you must be wary that this requires a hefty 50% deposit on the
loan which may not be financially wise in the short term. Moreover the
prospective buyer can handle these purchases then you are well on your way
to fully owning the land and property in the shortest time possible.
3) For the Tiling of the building, it is recommended that you may want to shop
around a bit more to acquire a variety of options before purchasing the right
one, this principle also applies to the purchase of paint and fencing.
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4) In this case, Ms. Jones could only find one local supplier of fencing, BRC and
she did not stop to consider that she could look overseas for a more cost
effective solution. It would be wise that you should also consider foreign
products, if they are of reputable quality, and if the importation fees and taxes
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