Lesia Nestorowich

From MathWiki

Final project about an interview with a Neuroscientist

Final project

Article #1

GM stock falls as loss rises Boosts shortfall by $2 billion U.S. Charges hint deal near on cost cuts Mar. 18, 2006. 01:00 AM SARAH KARUSH ASSOCIATED PRESS The Toronto Star <http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&cid=1142722231701&call_pageid=968350072197&col=969048863851>

This article discusses the issue of falling stocks after General Motors Corp. revealed that they had lost $2 billion (U.S.) more last year than previously reported. This loss was due to the miscalculations and errors made in the GM accounting department. Once the accounting department discovered that they had made huge errors, GM became scared and frantic which resulted in the delay of filing its annual report because of the major upset they knew it would cause. Stockholder shares fell 5% after the reveal of the loss which cut more than ½ billion dollars of GM’s market value. GM is now trying to find ways to cut costs to compensate for their loss yet are still obligated to health care and pension liabilities.

This article is directly related to the subject of mathematics. Accountants of big corporations like GM must be precisely accurate when calculating the businesses finances to on a final report. There are so many things that can be affected by a miscalculation. GM is now trying to cut costs to compensate for their losses thereby, laying off-full time employers may be a possibility. More part-time workers could be hired to replace full-timers so that GM is not obligated to health care and pension liabilities for the new part-timers. Also, part-time employees would most likely be receiving a lower wage than full-time employees which will save GM more money. Stock holders will suffer because their invested money has now decreased a sufficient 5%. Because of mathematical miscalculations, many problems have arisen and it could all have been avoided if the accounting had been done carefully. If the error had been detected earlier on in the process, GM would not be in the financial rut it is in now.

Article #2

Loonie sinks on rate hikeMar. 7, 2006. 01:40 PM STEVEN THEOBALD ECONOMICS REPORTER The Toronto Star <http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&cid=1141733241015&call_pageid=968350072197&col=969048863851>

Canadian banks, as well as banks worldwide, rely on mathematical trends and statistics in order to determine various consumer rates and policies. In turn, these changing policies play an important role in the economic status of the country. This article deals with increasing interest rates and prime lending rates, generally speaking, the cost of borrowing money, due to the strength of the Canadian dollar. Canadian banks need to take into account a number of factors when setting these rates, including the value of the Canadian dollar, the desire to maintain consumer-friendly interest rates, as well as the need to make a profit.

In the present situation, the value of the Canadian dollar has remained steady in the face of other economic downfalls, such as weakened commodity and natural gas prices. In turn, this trend has resulted in the increase of commercial borrowing rates (of money) from banks by consumers, thereby having a negative impact on the dollar. The amount of increase is determined through mathematical trends based on consumer borrowing tendencies, as well as economic stability. As a result, there are a number of factors in the economy that can be interpreted that contribute to the changes outlined in this article.

Article #3

Teens taught basics of finance PORTFOLIO DOCTOR Few of us need to learn financial street smarts as much as youth. David Cruise and Alison Griffiths report on a cool way schools help teens pick up some interest Mar. 19, 2006. 07:52 AM The Toronto Star <http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&cid=1142722231701&call_pageid=968350072197&col=969048863851>

This article discusses an important issue of educating high school teenagers about proper financing. A seminar titled “FUNNY MONEY” – created by James Cunningham (comic), Terri Williams (president of the Investors Education Fund) and Greg Durocher (general manager of the Cambridge Chamber of Commerce), is a comical presentation that educates students about their finances. Students are taught the basics: how to balance a checkbook, reconcile a debit card statement, budgeting (not spending more than is taken in), debt, investing, and the fundamentals of credit cards. All of these topics deal with and incorporate mathematics and mathematical knowledge.

It is important that the students are aware that about 40% of the workforce will not get a pension (beyond social security) which means that students need to learn how to budget and invest their money wisely to avoid debt and bankruptcy, and understand how to properly save money for their retirement. All of these financial issues can be analyzed and solved with basic mathematical skills. This article shows that math is an important skill to have. It is also an important subject to understand and be knowledgeable about. Improper financing could drastically change the health of the economy and personal living of individuals if it is not suitably controlled. Communities will benefit from teaching students about finances and the math that comes with it because, in the long run, the welfare of the communities will prosper and financial problems can ultimately be avoided or radically reduced.

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