The entire project will be due by Friday, May 15, 2015 via Google Docs. You will also do a presentation the following week to your classmates.

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1 Create and Operate Your Own Business For this project, you are going to apply many of the topics that we have been discussing the entire year. It is a final compilation of your math skills here at Firelands. You will be creating your own business, and be able to present a marketing plan about your business to have potential investors help you through your struggling times. Here are the items that you are going to create/calculate: 1. Business Logo (April 13, 2015) 2. Products to sell, with different price points for different quantities (April 20, 2015) 3. Business Loan payments (April 27, 2015) 4. Commercial Real-Estate (May 4, 2015) 5. Marketing opportunities (May 11, 2015) The entire project will be due by Friday, May 15, 2015 via Google Docs. You will also do a presentation the following week to your classmates. Business Logo (due April 13): You will be creating a business logo using piece-wise functions with domain constraints. Although your graph needs to meet certain criteria, I want you to be creative and have fun with this portion of the project. You will be graphing this image on Use the following table to help you with what you must minimally have creating your logo: Minimum Function Requirements Points Possible Points Earned Four (4) linear functions with domain constraints One (1) exponential functions with domain constraints 10 One (1) quadratic function with domain constraints 10 One (1) absolute value function with domain constraints 10 Additional Functions Points Possible Points Earned 10 points will be awarded for each additional function with domain constraints up to 220 points 220 Overall Requirements Points Possible Points Earned Design is original and creative 10 Color is used well 10 Logo is neat and polished; evidence of effort 10

2 Products to Sell (due April 20): You will be finding at least 6 products to sell for your business. Use the following problems to help you think of different products to sell, and how it can be applied to your business. 1. The minimum payment on a credit card is based on the total amount owed. A credit card company uses the following rules: For a bill less than $20 the entire amount is due, for a bill of at least $20 but less than $500, the minimum due is $20. For a bill of at least $500 but less than $1000 the minimum due is $ and for a bill of at least $1000 but less than $1500 the minimum due is $80 dollars. For a bill of $1500 or more the minimum due is 1/10 of the bill. 2. You are planning to buy some colorful t-shirts from a catalog. The shirts cost $14 each plus $7 shipping if you buy 4 or less and $11 each plus $10 shipping if you buy more than You are ordering photo prints online to send out to all your friends for the holidays. The first 20 prints cost 12 each, if you order more than 20 the price of the additional prints goes down to 8 each. You don t want your products to be priced too high that they won t sell, yet priced too low that you won t be able to make any profit off of your products. You will need to find products and their images (or items similar to your products) that can serve as a visual reference during your marketing opportunities portion of the project. You can have more than 6 products, but you need at least 6, defined by piece-wise pricing (similar to the scenarios above). Minimum Product Requirements Points Possible Points Earned Six (6) products, with appropriate pricing 300 Business Loan Payments (due April 27): You will need to find at least 3 different banks to help finance your business (all businesses need some type of startup cash). In 2009, the average small business needed $30,000 to open. In 2015, you would need $32,680 to have the same buying power (due to inflation). You will need to shop around and find the best interest rate for your loan. Things to consider: 1. Interest rate (determines how much money you will own in the end) 2. Years on loan (determines how long you have to pay it back) 3. Variable or fixed rate (variable can change the interest rate at any time, fixed is the same rate the entire time) For each of the 3 banks that you choose, you will need to calculate your monthly payment and the amount that the entire loan will cost you.

3 The fixed rate formula that you will use is: = ( ) ( ), where P is the Payment, PV is the Present Value (initial loan amount), r is the rate per period, and n is the number of periods. Pay attention to the number of payments for the loan (daily, weekly, monthly, yearly). It is important that the rate per period and number of periods match. (e.g., if monthly, use the effective monthly rate.) The formula for total amount paid for the loan is: = ( ) ( ), where P is the Payment, PV is the Present Value (initial loan amount), r is the rate per period, and n is the number of periods. You will need to have the correct amounts calculated for each loan, as well as graph showing how the amount you owe is decreasing over time. Bank #1 Points Possible Points Earned Monthly payment calculated Total Loan Amount calculated Bank #2 Points Possible Points Earned Monthly payment calculated Total Loan Amount calculated Bank #3 Points Possible Points Earned Monthly payment calculated Total Loan Amount calculated Commercial Real Estate (due May 4): You will need to find a real estate location to run your business. Use websites such as to find a suitable building to run your business. You will have to factor in property taxes and insurance on your property. For our purposes, we will assume that the yearly tax and insurance is $3.27/square foot. You will need to add that into your monthly payments for your building. Your budget for a building is $500,000. For each of the 3 banks that you choose, you will need to calculate your monthly payment and the amount that the entire loan will cost you. The fixed rate formula that you will use is: = ( ) ( ), where P is the Payment, PV is the Present Value (initial loan amount), r is the rate per period, and n is the number of periods. Pay attention to the number of payments for the

4 loan (daily, weekly, monthly, yearly). It is important that the rate per period and number of periods match. (e.g., If monthly, use the effective monthly rate.) The formula for total amount paid for the loan is: = ( ) ( ), where P is the Payment, PV is the Present Value (initial loan amount), r is the rate per period, and n is the number of periods. You will need to have the correct amounts calculated for each loan, while also factoring in the property taxes and insurance for your property. In addition to finding the correct amounts of payment each month and for the life of the loan (with the property taxes and insurance factored in), you will need to figure out how much extra you will have paid over the life of just the loan, by using the formula h = 100+ ( ) ( ) ( ) 100. Property #1 Points Possible Points Earned Property #2 Points Possible Points Earned Property #3 Points Possible Points Earned Marketing opportunities (due May 11): You must create a marketing campaign to have people invest in your business. You will need to create a presentation (similar to Shark Tank) to explain your business (with logo that you created), products you intend to sell (and price

5 points), where your initial loan will come from, and where you plan on setting up your business. You will use the presentation tools via Google Docs to create this presentation, and then present it to the class the following week. You will need to market yourself and your business in such a way that someone will understand what costs that you are trying to cover. You will need the explain your monthly costs, and how you are going to be able to make up that difference in capital (i.e. what you are selling, and how it will cover your monthly costs). Explain how your company will benefit the community, and what plan you have to grow in the future (i.e. what products you are looking to expand to, why this is important to the surrounding area, what need is this filling in the community, etc.) Presentation Points Possible Points Earned Logo 25 Products being sold 25 Monthly loan payment 25 Property information 25 Why would I want to invest? 200