## Monday, June 11, 2012

### Ch3 Math Finance Part 2

Ch3 Project Voice Thread Link by Thanh, Min Ying and Lan: Future Value of Annuity

### Interest Compound Continuously

Interest Compounded Continuously

## Friday, June 8, 2012

### Chapter 2 Project

According to zillow.com, the property taxes of my grandparent's house is \$4,778 as of June,2011. The tax was \$4,524  when my family moved in during October 2008.
• To find the model, you go to STAT ---> EDIT---> Plug in X & Y values. The X values would be from 2004-2011 but I type in #1-8 represent years. The Y values would be the property taxes. Then I found Quart Reg fits the best after I tried all four Reg ( Linear, Quad, Cubic, Quart) because R^2 is closet to 1.
• My house property taxes will not be \$100,000 because the maximum in \$4,800.
• The prediction can be changed if the value of the house increases.

### Chapter 2 Project

From Zillow.com, I found out that the house I live in was worth 332,000 in October, 2009, which was when I moved in. To find out the best regression model, i use the data I collected on Zillow and plugged it into my calculator. I went through all the different regression models, like cubic, linear, quadratic, etc. I found out that quartic regression is the most accurate.
The equation is 1.38x^4-24.588x^3+121.630x^2-107.510x+270.720.
In the future, the house will never drop to 100,000 because the minimum value is \$114,500.
The prediction can change if the economy drops even further, which means houses may go down in price.