Week 4 Math IP

Deliverable Length: E-mail of 250–500 words

You are co-owner of a bakery. You are the one who is always in the store running the operation. The other owner of the bakery is never there and is primarily the person who finances the operations. She has wanted to run discounts to increase business. Also, the mortgage on your store has a final balloon payment. You are concerned about these items and want to voice your opinion.

Write you partner an e-mail that includes the following information:

Discounts

What are some reasons that you would want to offer discounts?

What are 3 types of discounts the bakery could offer?

Are there reasons why you should not offer discounts?

Mortgage

In the beginning of a mortgage, what does the majority of each payment go toward, principal (loan balance) or interest?

What happens to the length of a loan if additional principal is paid each month?

What happens to the total interest amount if additional principal is paid monthly?