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1 Course: Mathematical modeling in personal finance. MM.(2) The student uses mathematical processes with graphical and numerical techniques to study patterns and analyze data related to personal finance. MM.(3) The student uses mathematical processes with algebraic formulas, graphs, and amortization modeling to solve problems involving credit. MM.(4) The student uses mathematical processes with algebraic formulas, numerical techniques, and graphs to solve problems related to financial planning. MM.2(A) use rates and linear functions to solve problems involving personal finance and budgeting, including compensations and deductions. MM.2(B) solve problems involving personal taxes. MM.2(C) analyze data to make decisions about banking, including options for online banking, checking accounts, overdraft protection, processing fees, and debit card/atm fees. Solve problems involving personal finances. Analyze data to make decisions about banking including: Online banking Checking accounts Overdraft protection Processing fees Debit/ATM fees Use multiple representations to communicate solutions. A bank has accounts that have fees for returned checks. The table below shows fees on two accounts. What are the linear functions for Account 1 and Account 2? Answer: y = 29x + 7 y = 20x + 16 Write a reflection on why you would select Bank from the class activity for your personal use. Include in the reflection online banking, type of account options and services they provide and other fees and how you determined this is the best fit for your needs. Commission Gross pay Net pay Base salary Social Security tax Medicare tax Withholding Overtime Overdraft Transaction Processing fees Provide real world situations to model solving problems. Create tables to organize the information. Divide class into groups and have each group investigate some of the top banks, including some local credit unions. Have student report back the information for their bank on a poster. Then ask students to compare and contrast the posters and determine which bank would be best for them or their family. Activities 5.1 Activities 3.3: Depreciation Activities 5.2 Activities 3.9, 3.10 Break even points, compound inequalities to support the mathematics. Last Edit Page 1

2 Course: MM.3(A) use formulas to generate tables to display series of payments for loan amortizations resulting from financed purchases. MM.3(C) use technology to create amortization models to investigate home financing and compare buying a home to renting a home. MM.3(D) use technology to create amortization models to investigate automobile financing and compare buying a vehicle to leasing a vehicle. MM.3(B) analyze personal credit options in retail purchasing and compare relative advantages and disadvantages of each option. amortization payment on a loan using the formula. amortization payment on a loan using technology. Compare buying a home to renting a home. Compare buying a vehicle to leasing a vehicle. Analyze personal credit options in retail purchasing. Compare relative advantages disadvantages of each personal credit option. Jerry purchases a new car for $24,500. If the sales tax on this purchase is 3.5%, how much sales tax will the dealer add to his cost? Answer: $ Jordan plans to purchase a 60-in HD LED TV. The table summarizes the information for each of the installment plans. Discuss the advantages and disadvantages of the two different plans. Answers will vary. payment schedule Leasing Mortgages Fixed loan Closed-end loan Installment price Annual percentage rate (APR) Provide situations including new car purchases or home buying to have students use formulas and technology to calculate payments. Provide the formulas to students to use. amount financed, the installment price, and the finance charge of an installment loan. installment payment. Use tables and the APR formula to determine the APR. Activities 5.5, 5.6 Project 5.7 om/watch?v=86jrhj0 oupq Activities 5.8 om/watch?v=cylimsb prpo m/wps/media/objects/ 1320/ /tables/t able14.pdf Last Edit Page 2

3 Course: MM.4(A) analyze and compare coverage options and rates in Analyze coverage options and rates in Compare coverage options in rates and in How is permanent life insurance similar to term life insurance? How is it different? Sample response: Term life insurance has no cash value at the end of the certain time period, whereas permanent life insurance accumulates a cash value. Life insurance Face value Insurance premium Term insurance Permanent life insurance Nonforfeiture options. term life insurance and permanent life Determine annual life insurance premiums for different types of policies using a table. Activities 5.9 MM.4(B) investigate and compare investment options, including stocks, bonds, annuities, certificates of deposit, and retirement plans. Investigate and compare investment options: stocks bonds annuities certificates of deposit retirement plans Face value Dividends Common stock Preferred stock Bond Coupon Proceeds Share Stock Accrued interest Annuity Future value Present value Calculate the value of each of the no forfeiture options for a cancelled permanent life insurance policy. an ordinary annuity and annuity due. Use formulas AND the TVM solver in the calculator to determine future and present values. stocks and bonds. Calculate the price of bonds. Activities om/watch?v=86jrhj0 oupq Last Edit Page 3

4 Course: MM.4(C) analyze types of savings options involving simple and compound interest and compare relative advantages of these options Analyze types of savings options with simple interest compound interest Compare relative advantages of simple interest compound interest Avery began saving for college when she started 8 th grade. She invested $200 into an account earning simple interest each month at a rate of 3.2% for 5 years. Her friend John waited until he was in 10 th grade to begin saving for college. He invested $250 into an account earning compound interest at a rate of 1.3% per month for 3 years. Which student will have earned the most interest at the time they begin college? Simple interest Compound interest Principal simple and compound interest. Provide the formulas. After calculating simple and compound interest rates, discuss the advantages and disadvantages. Activities 5.3 A. Avery, because $ 32 > $9.88 B. John, because $250> $200 C. Avery, because $384 >$148 D. John, because $398 > $384. Correct answer: C Last Edit Page 4

5 Course: MM.(5) Mathematical modeling in science and engineering. The student applies mathematical processes with algebraic techniques to study patterns and analyze data as it applies to science. MM.(9) Mathematical modeling in social sciences. The student applies mathematical processes and mathematical models to analyze data as it applies to social sciences. MM.5(B) use exponential models available through technology to model growth and decay in areas, including radioactive decay. MM.9(F) use regression methods available through technology to model linear and exponential functions, interpret correlations, and make predictions. Graph exponential functions from numerical data and equations. Recognize exponential functions from equations Students may be expected to justify or make an argument for the chosen model. Correlations may or may not be used to justify predictions. The table shows the pay in cents for the number of days worked in July of one year. Number of days worked in July Daily pay (in cents) What is the model for the function? How much would the day be on July 20 th? Answer: x y = 2, $10, Inflation rate Exponential function Exponential growth Exponential decay Linear regression equation Regression line Interpolation Extrapolation Correlation coefficient Use graphing calculator to model the functions. Include questions that allow for students to make predictions. Activities 6.3, 6.5, 6.7 Last Edit Page 5