Formatting Blackline Masters s2

Unit 6, Activity 1, Vocabulary Chart

During the unit on credit, maintain this vocabulary self-awareness chart. Before we begin this unit, rate your understanding of each word with either a “+” (understand well), a “√” (limited understanding or unsure), or a “—“ (don’t know). Over the course of this unit, return to this chart and revise any √ or – marks to + marks as you learn new information. The goal is to replace all the check marks and minus signs with a plus sign. When a + mark is made for a word, provide an example and a definition in your own words. The completed chart is due when we complete the unit. + or √ Word Example Definition or -

Credit card

Charge card

Debit card

Finance charge

Minimum payment

Credit limit

Annual fee

Annual percentage rate Monthly periodic rate

Variable interest rate

Prime rate

Fair Credit Reporting Act

Equal Credit Opportunity Act

Truth in Lending Act

Blackline Masters, Financial Math Page 143 Louisiana Comprehensive Curriculum, Revised 2008 Unit 6, Activity 1, Credit Knowledge

Name______

Task: 1. Go to: http://www.practicalmoneyskills.com/english/index.php. 2. In the “At Home” tab, choose “Credit Cards” on the left under “Learning Centers.” 3. Begin under the “Learn It” column. a. Start with “Advantages and disadvantages”, click on the link and explore the information provided. b. Move down the links in the “Learn It” column. Explore all the links in the column. 4. When complete, move on to the “Do It” column. a. Here you will be taking four interactive quizzes: i. Quiz 1: Quiz your knowledge (matching game) ii. Quiz 2: About credit iii. Quiz 3: Quiz your credit knowledge iv. Quiz 4: Wise use of credit b. Pause after each quiz, get my attention, and I will record your score for the quiz.

Quiz 1 Quiz 2 Quiz 3 Quiz 4

5. After I have recorded your four quiz grades on this sheet, turn it in.

Blackline Masters, Financial Math Page 144 Louisiana Comprehensive Curriculum, Revised 2008 Unit 6, Activity 2, Credit Card Statement

Account Number: Credit Card Statement 1111-2222-3333-4444 Payment Due: Name: Boudreaux Dontired Statement Date: 4/14/2008 5/13/2008 Billing Period: 3/14/08 – 4/14/08 Credit Line: Credit Available: New Balance: Minimum Payment Due: $500.00 $309.14 $190.86 $20.00

Reference Sold Posted Activity Since Last Statement Amount 4833XF89 3/01 3/20 John’s BAR-B-Q 14.83 JJK98TRX 3/15 3/28 Baby’s Clothes Rack 52.91 987PAY12 4/11 Payment – Thank You -50.00

Previous Balance: +169.38 Current Amount Due: 190.86 Purchases: +67.74 Amount Past Due: Cash Advances: + Amount Over Credit Limit: Payments: -50.00 Credits: - Minimum Payment 20.00 Finance Charge: +4.10 Due: Late Charge: + NEW BALANCE 190.86

Purchase: Cash Advance

Periodic Rate: 2% 3% Customer Service, call: 1-800-###-#### Annual Percentage Rate: 24% 36% For Lost or Stolen Credit Cards, call: 1-800-###-####

Task: 1. Go to: http://www.practicalmoneyskills.com/english/resources/tutor/statements/credit_state.php

2. Pause at each topic on the right side of the screen, make note where each piece of information is on the interactive account statement. 3. Label the Credit Card Statement above with the terms illustrated on the interactive form. Ignore any missing sections on the above form.

Blackline Masters, Financial Math Page 145 Louisiana Comprehensive Curriculum, Revised 2008 Unit 6, Activity 5, Credit Card Application

Task: 1. Fill-out each of the credit card applications, minus your social security number. 2. Read through the credit card agreement that should be attached to the application and, using the chart below, make notes about the key points of the credit agreement.

Card 1 Card 2 Key Point Card name: Card name:

Annual percentage rate (APR) for purchases, list all Cash Advance APR: Cash Advance:

Balance Transfer APR: Introductory: Other APRs, list all

Default APR: Delinquency:

Variable-rate information

Grace period for repayment of balance for purchases Method of computing the balance for purchases Annual fee

Minimum finance charge Transaction fee for balance transfers Transaction fee for cash advances International transactions Late payment fee

Over-the-credit-limit fee

Blackline Masters, Financial Math Page 146 Louisiana Comprehensive Curriculum, Revised 2008 Unit 6, Activity 8, Installment Loan with Tables

Task: 1. Use the formulas and table below to answer the questions. 2. For each problem, find the monthly payment, total amount repaid & total finance charge. 3. Answer each question on your own paper, show all work.

Formulas: Monthly Payment = (Amount of Loan / $100) X Monthly Payment on a $100 Simple Interest Installment Loan (This is the number from the table.)

Total Amount Repaid = Number of payments X Monthly Payment

Total Finance Charge = Total Amount Repaid - Amount of Loan

Monthly Payment on a $100 Simple Interest Installment Loan Term Annual Percentage Rate in 8% 9% 10.5% 11.5% 12% 14% 15% 16% 17% 18% 24% months 6 17.06 17.11 17.18 17.23 17.25 17.35 17.40 17.45 17.50 17.55 17.85 12 8.70 8.75 8.81 8.86 8.88 8.98 9.03 9.07 9.12 9.17 9.46 18 5.91 5.96 6.03 6.08 6.10 6.19 6.24 6.29 6.33 6.38 6.67 24 4.52 4.57 4.64 4.68 4.71 4.80 4.85 4.90 4.94 4.99 5.29 30 3.69 3.73 3.80 3.85 3.87 3.97 4.02 4.07 4.11 4.16 4.46 36 3.13 3.18 3.25 3.30 3.32 3.42 3.47 3.52 3.57 3.62 3.92 40 2.86 2.90 2.97 3.02 3.05 3.14 3.19 3.24 3.29 3.34 3.66 48 2.44 2.49 2.56 2.61 2.63 2.73 2.78 2.83 2.89 2.94 3.26 60 2.03 2.08 2.15 2.20 2.22 2.33 2.38 2.43 2.49 2.54 2.88

1. Installment loan of $2000. 12 monthly payments. APR is 18%. 2. Installment loan of $2000. 24 monthly payments. APR is 18%. 3. Installment loan of $2000. 24 monthly payments. APR is 11.5%. 4. Installment loan of $2000. 12 monthly payments. APR is 8%. 5. Installment loan of $10000. 24 monthly payments. APR is 18%. 6. Installment loan of $10000. 24 monthly payments. APR is 12%. 7. Installment loan of $10000. 24 monthly payments. APR is 8%. 8. Installment loan of $25000. 48 monthly payments. APR is 18%. 9. Installment loan of $25000. 48 monthly payments. APR is 8%. 10. Installment loan of $35000. 60 monthly payments. APR is 9%.

Blackline Masters, Financial Math Page 147 Louisiana Comprehensive Curriculum, Revised 2008 Unit 6, Activity 8, Installment Loan with Tables with Answers

Monthly Total Amount Total Finance Problem Payment Repaid Charge 1. Installment loan of $2000. 12 monthly $183.36 $2,200.32 $200.32 payments. APR is 18%. 2. Installment loan of $2000. 24 monthly $99.85 $2,396.40 $396.40 payments. APR is 18%. 3. Installment loan of $2000. 24 monthly $93.68 $2,248.08 $248.08 payments. APR is 11.5%. 4. Installment loan of $2000. 12 monthly $173.98 $2,087.76 $87.76 payments. APR is 8%. 5. Installment loan of $10000. 24 monthly $499.24 $11,981.76 $1,981.76 payments. APR is 18%. 6. Installment loan of $10000. 24 monthly $470.73 $11,297.52 $1,297.52 payments. APR is 12%. 7. Installment loan of $10000. 24 monthly $452.27 $10,854.48 $854.48 payments. APR is 8%. 8. Installment loan of $25000. 48 monthly $734.37 $35,249.76 $10,249.76 payments. APR is 18%. 9. Installment loan of $25000. 48 monthly $610.32 $29,295.36 $4,295.36 payments. APR is 8%. 10. Installment loan of $35000. 60 monthly $726.54 $43,592.40 $8,592.40 payments. APR is 9%.

Blackline Masters, Financial Math Page 148 Louisiana Comprehensive Curriculum, Revised 2008 Unit 6, Activity 9, Repayment Simulation

Scenario: Imagine you purchase a CD player for your car at a local electronics store. The CD player and installation totals $378.23. You open your first charge account to pay for the purchase. Your account agreement requires you to pay a minimum of $20 each month until the CD player is paid off. Your annual interest rate is 18%.

Problem: Create and complete a repayment schedule for your CD player loan. You make no other charges or additional payments beyond the minimum to your account for the duration of the payoff.

Solution: Include: (1) a repayment schedule, started below, (2) total months needed to payoff the CD player, (3) total amount paid for the CD player, and (4) total interest paid. Note: Calculate interest using the unpaid-balance method learned in unit 6.

Repayment Schedule for CD player loan Monthly Amount for Amount for Payment # New Principal Payment interest principal 1 $20 $5.67 $14.33 $363.90 2 $20 $5.46 $14.54 $349.36 3 $20 $5.24 $14.76 $334.60 4 $20 $5.02 $14.98 $319.62 5 $20 $4.79 $15.21 $304.41

Note: You may need to add to the table provided. If so, complete on back.

Blackline Masters, Financial Math Page 149 Louisiana Comprehensive Curriculum, Revised 2008 Unit 6, Activity 9, Repayment Simulation with Answers

Solution table.

Repayment Schedule for CD player loan Monthly Amount for Amount for Payment # New Principal Payment interest principal 1 $20 $5.67 $14.33 $363.90 2 $20 $5.46 $14.54 $349.36 3 $20 $5.24 $14.76 $334.60 4 $20 $5.02 $14.98 $319.62 5 $20 $4.79 $15.21 $304.41 6 $20 $4.57 $15.43 $288.98 7 $20 $4.33 $15.67 $273.31 8 $20 $4.10 $15.90 $257.41 9 $20 $3.86 $16.14 $541.27 10 $20 $3.62 $16.38 $224.89 11 $20 $3.37 $16.63 $208.26 12 $20 $3.12 $16.88 $191.38 13 $20 $2.87 $17.13 $174.25 14 $20 $2.61 $17.39 $156.86 15 $20 $2.35 $17.65 $139.21 16 $20 $2.09 $17.91 $121.30 17 $20 $1.82 $18.18 $103.12 18 $20 $1.55 $18.45 $84.67 19 $20 $1.27 $18.73 $65.94 20 $20 $.99 $19.01 $46.93 21 $20 $.70 $19.30 $27.63 22 $20 $.41 $19.59 $8.04 23 $8.16 $.12 $8.04 $0.00 Note: You may need to add to the table provided. If so, complete on back.

Total repaid: $448.16 Total interest: $69.93

Blackline Masters, Financial Math Page 150 Louisiana Comprehensive Curriculum, Revised 2008 Unit 6, Activity 10, Electronic Loan Calculation

Task 1. Work the problems below, find the monthly payment. 2. Use an Internet loan calculator at the link below. 3. Go to: http://www.bankrate.com/brm/popcalc2.asp 4. Print an amortization table for a problem of your choice.

1. Installment loan of $2000. 12 monthly payments. APR is 18%. 2. Installment loan of $2000. 24 monthly payments. APR is 18%. 3. Installment loan of $2000. 24 monthly payments. APR is 11.5%. 4. Installment loan of $2000. 12 monthly payments. APR is 8%. 5. Installment loan of $10000. 24 monthly payments. APR is 18%. 6. Installment loan of $10000. 24 monthly payments. APR is 12%. 7. Installment loan of $10000. 24 monthly payments. APR is 8%. 8. Installment loan of $25000. 48 monthly payments. APR is 18%. 9. Installment loan of $25000. 48 monthly payments. APR is 8%. 10. Installment loan of $35000. 60 monthly payments. APR is 9%.

Blackline Masters, Financial Math Page 151 Louisiana Comprehensive Curriculum, Revised 2008 Unit 6, Activity 10, Electronic Loan Calculation with Answers

Refer to Installment Loan with Tables with Answers for monthly payment, total amount repaid, and total finance charge.

Amortization table for question #1.

Amortization Table for $2000.00 borrowed for 12 months at 18% Payment 1 2 3 4 5 6 7 8 9 10 11 12 Number Payment ($) 183.36 183.36 183.36 183.36 183.36 183.36 183.36 183.36 183.36 183.36 183.36 183.36 Principal 153.36 155.66 158.00 160.37 162.77 165.21 167.69 170.21 172.76 175.35 177.98 180.65 Paid ($) Interest 30.00 27.70 25.36 22.99 20.59 18.15 15.67 13.15 10.60 8.01 5.38 2.71 Paid ($) Total 30.00 57.70 83.06 106.06 126.65 144.80 160.47 173.62 184.22 192.23 197.61 200.32 Interest ($) Balance ($) 1846.64 1690.98 1532.98 1372.62 1209.85 1044.64 876.95 706.74 533.98 358.63 180.65 0.00

Blackline Masters, Financial Math Page 152 Louisiana Comprehensive Curriculum, Revised 2008 Unit 6, Activity 12, Loan What-If

Names:

Task: 1. This is a group activity. Form into groups of 3 or 4. 2. Compare the loans from the table below. Take note of the differences and similarities of the loans. 3. Use the following website: http://www.quicken.com/banking_and_credit/loan_calc/ to calculate the loans. 4. Remember, amount financed = loan amount + fees financed

Loan Comparison Worksheet Inputs Outputs Loan Interest Term in Fees Amount Payment Total Amount Rate years Financed Financed Interest Scenario 1 a.$10,000 8.5% 5 $950 b.$10,000 12% 5 $950 c.$10,000 19.5% 5 $950 d.$10,000 7.5% 5 $950 Scenario 2 a.$29,050 8.5% 5 $0 b.$29,050 8.5% 5 $1,168 c.$29,050 8.5% 5 $450 d.$29,050 8.5% 5 $700 Scenario 3 a.$3,000 6.5% 4 $825 b.$3,000 6.5% 3.5 $825 c.$3,000 6.5% 3 $825 Scenario 4 a.$19,175 4.5% 4 $0 b.$19,175 5.34% 5 $0 c.$19,175 3.9% 3 $0

5. After the table is complete, turn the sheet over and rate the loans from each scenario. Discuss the rationale for your choice with the group and summarize in the box provided. 6. Be prepared to present your decisions to the class.

Blackline Masters, Financial Math Page 153 Louisiana Comprehensive Curriculum, Revised 2008 Unit 6, Activity 12, Loan What-If

First Choice. Why? Second Choice. Why? Third Choice. Why?

Scenario 1

Scenario 2

Scenario 3

Scenario 4

Blackline Masters, Financial Math Page 154 Louisiana Comprehensive Curriculum, Revised 2008 Unit 6, Activity 12, Loan What-If with Answers

Loan Comparison Worksheet Inputs Outputs Loan Interest Term in Fees Amount Payment Total Amount Rate years Financed Financed Interest Scenario 1 $10,000 8.5% 5 $950 $10,950 $224.66 $2,529 $10,000 12% 5 $950 $10,950 $243.58 $3,665 $10,000 19.5% 5 $950 $10,950 $287.07 $6,274 $10,000 7.5% 5 $950 $10,950 $219.42 $2,215 Scenario 2 $29,050 8.5% 5 $0 $29,050 $596.01 $6,710 $29,050 8.5% 5 $1,168 $30,218 $619.97 $6,980 $29,050 8.5% 5 $450 $29,500 $605.24 $6,814 $29,050 8.5% 5 $700 $29,750 $610.37 $6,872 Scenario 3 $3,000 6.5% 4 $825 $3,825 $90.71 $529 $3,000 6.5% 3.5 $825 $3,825 $102.07 $462 $3,000 6.5% 3 $825 $3,825 $117.23 $395 Scenario 4 $19,175 4.5% 4 $0 $19,175 $437.26 $1,813 $19,175 5.34% 5 $0 $19,175 $364.85 $2,716 $19,175 3.9% 3 $0 $19,175 $565.27 $1,175

Each group’s reasons (pros/cons) should include items such as:  If I finance the loan fees, my monthly payment is higher  If I finance the loan fees, my total cost is higher  If I make a down payment, my monthly payment is lower  If I make a down payment, my total cost is lower  If I decrease the term of the loan, my monthly payment is higher  If I decrease the term of the loan, my total cost is lower  If I obtain a lower rate, my monthly payment is lower  If I obtain a lower rate, my total cost is lower

Blackline Masters, Financial Math Page 155 Louisiana Comprehensive Curriculum, Revised 2008 Unit 6, Activity 13, Discussion Guide

Your Credit Application Predictions:

Questions:

Clarifications:

Summary:

Was the prediction confirmed? Yes No Details:

Your Credit Billing and Electronic Fund Transfer Statements Predictions:

Questions:

Clarifications:

Summary:

Your Debts and Debt Collectors

Predictions:

Questions:

Clarifications:

Summary:

Solving Your Credit Problems

Predictions:

Questions:

Clarifications:

Summary:

Blackline Masters, Financial Math Page 159 Louisiana Comprehensive Curriculum, Revised 2008 Unit 6, General Assessments, Use of Credit Rubric

Use of Credit Essay Name: ______Teacher: Date Submitted: ______Title of Work: Criteria Points 1 2 3 4 Reader has Student presents Information in Sequence of difficulty information in logical, Organization information is following work logical sequence interesting ____ difficult to follow. because student which reader can sequence which jumps around. follow. reader can follow. Student is Student does not have uncomfortable Student grasp of information; Student is at ease Content with content and is demonstrates full student cannot answer with content, but ____ Knowledge able to knowledge (more questions about fails to elaborate. demonstrate basic than required). subject. concepts. Presentation has Presentation has Work has four or no more than two Presentation has three misspellings Grammar and more spelling errors misspellings no misspellings and/or ____ Spelling and/or grammatical and/or or grammatical grammatical errors. grammatical errors. errors. errors. Work has three or Work has one or Work is neatly Neatness Work is illegible. four areas that are two areas that are ____ done. sloppy. sloppy. Work does not have the Work displays the Reference section Work displays no appropriate correct number of References was completed ____ references. number of references, incorrectly required written correctly. references. Total----> ____ TeacherComments: Comments:

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Blackline Masters, Financial Math Page 160 Louisiana Comprehensive Curriculum, Revised 2008 Unit 6, General Assessments, Test

Name______Date______

Jan and Fred Easton have been shopping for a boat and outboard motor for use on a nearby lake during warm weather. They have shopped very carefully for the boat for several months and believe that they have picked the right boat and motor combination and the right dealer for their needs. The cash price they have bargained for the used boat they want is $6,000. This price includes a used trailer. The Eastons also shopped around carefully to find the best deal for borrowing the amount of money they will need to buy the boat. They have identified three sources for the funds they need: the boat dealer, their credit union, and a special low-interest rate credit card. The information they have gathered about each loan is presented below. Answer the questions about each loan offer.

I. The boat dealer’s deal: The boat dealer, Water-Craft Sales, Inc., has offered the Eastons these installment plan terms: 10% down payment and the remainder to be paid in 24 payments of $261 each. Under this plan,

1. The amount financed is $______. 2. The installment price of the boat is $______. 3. The total finance charge is $______. 4. The total installment plan price of the boat is ______% greater than the cash price. 5. Using the table below, the annual percentage rate for the dealer’s offer is ______%.

No. of Annual Percentage Rate payments 14.00 14.25 14.50 14.75 15.00 15.25 15.50 15.75 16.00 17.00 18.00 (Finance Charge per $100 of Amount Financed) 6 4.12 4.20 4.27 4.35 4.42 4.49 4.57 4.64 4.72 5.02 5.32 12 7.74 7.89 8.03 8.17 8.31 8.45 8.59 8.74 8.88 9.45 10.02 18 11.45 11.66 11.87 12.08 12.29 12.50 12.72 12.93 13.14 13.99 14.85 20 12.70 12.93 13.17 13.41 13.64 13.88 14.11 14.35 14.59 15.54 16.49 24 15.23 15.51 15.80 16.08 16.37 16.65 16.94 17.22 17.51 18.66 19.82 30 19.10 19.45 19.81 20.17 20.54 20.90 21.26 21.62 21.99 23.45 24.92 36 23.04 23.48 23.92 24.35 24.80 25.24 25.68 26.12 26.57 28.35 30.15

II. The Credit Union’s Deal: The Carlton Credit Union has offered the Eastons these terms: A $6,000, two-year loan with interest on the unpaid balance at the monthly rate of 1.25%. They are to make monthly payments of $250 on the principal along with interest for the month. The Eastons must also sign a promissory note for the loan and pledge the boat, motor, and trailer as collateral.

6. Complete the monthly payment schedule below.

Carlton Credit Union Repayment Schedule for Janice and Fred Easton Payment Unpaid Payment on Monthly Total Payment Number Balance Principal Interest 1 $6,000 250 $75.00 $350.00 2 5,750 250 71.88 321.88 3 5,500 250 68.75 318.75 4 250 65.63 315.63 5 250 62.50 312.50 6 250 309.38 7 250 306.25 8 250 9 250 10 250 11 250 12 250 13 250 14 250 15 250 16 250 17 250 18 250 19 250 20 250 21 250 22 250 23 250 24 250 Totals $6,000

Under this plan,

7. The total price of the boat is $______. 8. The total finance charges are $______. 9. The total installment plan price of the boat is ______% greater, to the nearest tenth of a percent, than the cash price. 10. The annual rate of interest charged is ______%.

III. The Credit Card Option: The Eastons have just received a new credit card offer. They can charge up to $7,500 on any purchases. The card offers a 7% annual percentage rate until April 30, 20__. After that, an 18% annual percentage rate will be charged. Finance charges are based on the previous balance. If they buy the boat using the credit card, no down payment is required. The Eastons would not make any other purchases with the card until the boat and motor were paid off. Because Mrs. Easton receives quarterly checks from a devoted aunt, the Eastons know they can make the principal payments shown in the chart below. The first payment is due on April 7.

11. Complete the following chart showing the monthly finance charge, total payment, and new balance.

7% Annual Planned Date Percentage Principal Total Payment Ending Balance Rate Payment March 7 $6,000 April 7 $0 $950 $950.00 5,050 May 7 29.46 255 284.46 4,795 June 7 27.97 255 282.97 4,540 July 7 255 Aug 7 950 Sept 7 255 Oct 7 255 Nov 7 255 Dec 7 950 Jan 7 255 Feb 7 255 Mar 7 255 Apr 7 $0 Total $6,000

Under this plan, 12. The total credit card price of the boat is $______. 13. The total finance charges are $______. 14. The total credit card price is ______% greater, to the nearest tenth of a percent, than the cash price. 15. Considering the Easton’s situation, which credit choice would you advise them to make? Why?

Blackline Masters, Financial Math Page 163 Louisiana Comprehensive Curriculum, Revised 2008 Unit 6, General Assessments, Test with Answers

Name______Date______

Jan and Fred Easton have been shopping for a boat and outboard motor for use on a nearby lake during warm weather. They have shopped very carefully for the boat for several months and believe that they have picked the right boat and motor combination and the right dealer for their needs. The cash price they have bargained for the used boat they want is $6,000. This price includes a used trailer. The Eastons also shopped around carefully to find the best deal for borrowing the amount of money they will need to buy the boat. They have identified three sources for the funds they need: the boat dealer, their credit union, and a special low-interest rate credit card. The information they have gathered about each loan is presented below. Answer the questions about each loan offer.

I. The boat dealer’s deal: The boat dealer, Water-Craft Sales, Inc., has offered the Eastons these installment plan terms: 10% down payment and the remainder to be paid in 24 payments of $261 each. Under this plan,

16. The amount financed is $______5,400______17. The installment price of the boat is $______6,264______18. The total finance charge is $______864______19. The total installment plan price of the boat is _____14.4_____% greater than the cash price. 20. Using the table below, the annual percentage rate for the dealer’s offer is ___14.75___%.

No. of Annual Percentage Rate payments 14.00 14.25 14.50 14.75 15.00 15.25 15.50 15.75 16.00 17.00 18.00 (Finance Charge per $100 of Amount Financed) 6 4.12 4.20 4.27 4.35 4.42 4.49 4.57 4.64 4.72 5.02 5.32 12 7.74 7.89 8.03 8.17 8.31 8.45 8.59 8.74 8.88 9.45 10.02 18 11.45 11.66 11.87 12.08 12.29 12.50 12.72 12.93 13.14 13.99 14.85 20 12.70 12.93 13.17 13.41 13.64 13.88 14.11 14.35 14.59 15.54 16.49 24 15.23 15.51 15.80 16.08 16.37 16.65 16.94 17.22 17.51 18.66 19.82 30 19.10 19.45 19.81 20.17 20.54 20.90 21.26 21.62 21.99 23.45 24.92 36 23.04 23.48 23.92 24.35 24.80 25.24 25.68 26.12 26.57 28.35 30.15

II. The Credit Union’s Deal: The Carlton Credit Union has offered the Eastons these terms: A $6,000, two-year loan with interest on the unpaid balance at the monthly rate of 1.25%. They are to make monthly payments of $250 on the principal along with interest for the month. The Eastons must also sign a promissory note for the loan and pledge the boat, motor, and trailer as collateral.

21. Complete the monthly payment schedule below.

Carlton Credit Union Repayment Schedule for Janice and Fred Easton Payment Unpaid Payment on Monthly Total Payment Number Balance Principal Interest 1 $6,000 250 $75.00 $350.00 2 5,750 250 71.88 321.88 3 5,500 250 68.75 318.75 4 5,250 250 65.63 315.63 5 5,000 250 62.50 312.50 6 4,750 250 59.38 309.38 7 4,500 250 56.25 306.25 8 4,250 250 53.13 303.13 9 4,000 250 50.00 300.00 10 3,750 250 46.88 296.88 11 3,500 250 43.75 293.75 12 3,250 250 40.63 290.63 13 3,000 250 37.50 287.50 14 2,750 250 34.38 284.38 15 2,500 250 31.25 281.25 16 2,250 250 28.13 278.13 17 2,000 250 25.00 275.00 18 1,750 250 21.88 271.88 19 1,500 250 18.75 268.75 20 1,250 250 15.63 265.63 21 1,000 250 12.50 262.50 22 750 250 9.38 259.38 23 500 250 6.25 256.25 24 250 250 3.13 253.13 Totals $6,000 937.56 6,937.56

Under this plan,

22. The total price of the boat is $______6,937.56______23. The total finance charges are $______937.56______24. The total installment plan price of the boat is ____15.6______% greater, to the nearest tenth of a percent, than the cash price. 25. The annual rate of interest charged is ______15______%.

III. The Credit Card Option: The Eastons have just received a new credit card offer. They can charge up to $7,500 on any purchases. The card offers a 7% annual percentage rate until April 30, 20__. After that, an 18% annual percentage rate will be charged. Finance charges are based on the previous balance. If they buy the boat using the credit card, no down payment is required. The Eastons would not make any other purchases with the card until the boat and motor were paid off. Because Mrs. Easton receives quarterly checks from a devoted aunt, the Eastons know they can make the principal payments shown in the chart below. The first payment is due on April 7.

26. Complete the following chart showing the monthly finance charge, total payment, and new balance.

7% Annual Planned Date Percentage Principal Total Payment Ending Balance Rate Payment March 7 $6,000 April 7 $0 $950 $950.00 5,050 May 7 29.46 255 284.46 4,795 June 7 27.97 255 282.97 4,540 July 7 26.48 255 281.48 4,285 Aug 7 25.00 950 975.00 3,335 Sept 7 19.45 255 274.45 3,080 Oct 7 17.97 255 272.97 2,825 Nov 7 16.48 255 271.48 2,570 Dec 7 14.99 950 964.99 1,620 Jan 7 9.45 255 264.45 1,365 Feb 7 7.96 255 262.96 1,110 Mar 7 6.48 255 261.48 855 Apr 7 4.99 855 859.99 $0 Total 206.68 $6,000 6,206.68

Under this plan, 27. The total credit card price of the boat is $______6,206.68______28. The total finance charges are $______206.68______29. The total credit card price is ______3.4_____% greater, to the nearest tenth of a percent, than the cash price.

30. Considering the Easton’s situation, which credit choice would you advise them to make? Why? Answers will vary. The Credit Card option is cheapest, followed by the dealer’s offer, and the Credit Union’s offer is the most expensive.

Blackline Masters, Financial Math Page 166 Louisiana Comprehensive Curriculum, Revised 2008 Unit 6, Specific Assessments, Activity 3, Average Daily Balance

Many companies calculate the finance charge using the average-daily-balance method. The average daily balance is the average of the account balance at the end of each day of the billing period. New purchases posted during the billing period should be added as of the posting date. Payments received during the billing period should be subtracted as of the posting date. The finance charge is calculated by multiplying the periodic rate by the average daily balance. 1. Billing End-of-day Number of Sum of Daily Purchase Payment Periods Balance Days Balances 4/01 – 4/10 $410.20 4/11 $150.00 4/12 – 4/20 4/21 $43.12 4/22 – 4/30 Totals

What is the average-daily-balance? ______

If the annual interest rate is 18%, what is the finance charge? ______

2. Calculate the average daily balance, finance charge, and new balance as of July 1 using the average-daily-balance method. The periodic rate is 1.45%.

Date Transaction Amount June 1 Balance $800.00 June 11 Payment $200.00 June 25 Purchase $150.00

3. A portion of an account statement for September is shown. The finance charge is computed using the average-daily-balance method. Find the average daily balance, the finance charge, and the new balance.

Reference Sold Posted Description Amount 4833XF89 9/10 9/20 Corner Drug 19.86 JJK98TRX 9/15 9/26 Swap Shoppe 96.72 987PAY12 9/28 Payment – Thank You -50.00 0007619A 9/23 9/29 Babbit’s Plumbing Supply 19.43

Previous Balance: 169.38 Billing Period: 9/01 – 9/30 Periodic Rate: 1.977% Average Daily Balance: Finance Charge: New Balance:

4. Calculate the average daily balance and the finance charge for the statement below.

Blackline Masters, Financial Math Page 167 Louisiana Comprehensive Curriculum, Revised 2008 Unit 6, Specific Assessments, Activity 3, Average Daily Balance

Previous Balance: +169.38 Current Amount Due: Purchases: +67.74 Amount Past Due: Cash Advances: + Amount Over Credit Limit: Payments: -50.00 Credits: - Finance Charge: + Late Charge: + NEW BALANCE

Purchase: Cash Advance: Customer Service, call: 1-800-###-####

Annual Percentage Rate: 24% 36% For Lost or Stolen Credit Cards, call: 1-800-###-####

Average Daily Balance:______

Finance Charge: ______

Blackline Masters, Financial Math Page 168 Louisiana Comprehensive Curriculum, Revised 2008 Unit 6, Specific Assessments, Activity 3, Average Daily Balance with Answers

1. Billing End-of-day Number of Sum of Daily Purchase Payment Periods Balance Days Balances 4/01 – 4/10 $410.20 10 $4,102.00 4/11 $150.00 $260.20 1 $260.20 4/12 – 4/20 $260.20 9 $2,341.80 4/21 $43.12 $303.32 1 $303.32 4/22 – 4/30 $303.32 9 $2,729.88 Totals 30 $9,737.20

What is the average-daily-balance? ______$324.57______

If the annual interest rate is 18%, what is the finance charge? ______$4.87_____

2. Calculate the average daily balance, finance charge, and new balance as of July 1 using the average-daily-balance method. The periodic rate is 1.45%.

Date Transaction Amount Average Daily Balance: $698.39 June 1 Balance $800.00 Finance Charge: $10.13 June 11 Payment $200.00 New Balance: $760.13 June 25 Purchase $150.00

3. A portion of an account statement for September is shown. The finance charge is computed using the average-daily-balance method. Find the average daily balance, the finance charge, and the new balance.

Reference Sold Posted Description Amount 4833XF89 9/10 9/20 Corner Drug 19.86 JJK98TRX 9/15 9/26 Swap Shoppe 96.72 987PAY12 9/28 Payment – Thank You -50.00 0007619A 9/23 9/29 Babbit’s Plumbing Supply 19.43

Previous Balance: 169.38 Billing Period: 9/01 – 9/30 Periodic Rate: 1.977% Average Daily Balance: $189.08 Finance Charge: $3.74 New Balance: $259.13

Blackline Masters, Financial Math Page 169 Louisiana Comprehensive Curriculum, Revised 2008 Unit 6, Specific Assessments, Activity 3, Average Daily Balance with Answers

4. Calculate the average daily balance and the finance charge for the statement below.

Previous Balance: +169.38 Current Amount Due: Purchases: +67.74 Amount Past Due: Cash Advances: + Amount Over Credit Limit: Payments: -50.00 Credits: - Finance Charge: + Late Charge: + NEW BALANCE

Purchase: Cash Advance: Customer Service, call: 1-800-###-####

Annual Percentage Rate: 24% 36% For Lost or Stolen Credit Cards, call: 1-800-###-####

Average Daily Balance:______$205.52______

Finance Charge: ______$4.11______

Blackline Masters, Financial Math Page 170 Louisiana Comprehensive Curriculum, Revised 2008 Unit 6, Specific Assessments, Activity 9, Repayment Schedule Rubric

Repayment Schedule Rubric CATEGORY 2 1 0 Table All 23 months of table are Between 15 & 22 months of Less than 15 months complete table complete complete

Calculations, months All table calculations are Many calculations are correct Few calculations are correct 5 through 22 correct

Month 23 Monthly Payment, Amount for One or two items incorrect, All items incorrect Interest, and Principal are but not all. correct

Total Amount Paid & Both correct One correct Neither correct Total Interest Paid

Above rubric adopted from: http://rubistar.4teachers.org/

Blackline Masters, Financial Math Page 171 Louisiana Comprehensive Curriculum, Revised 2008 Unit 6, Specific Assessments, Activity 11, House Savings

Directions: Using the skills you have learned using a graphing calculator, answer the following question. Your answer should list the key strokes required to solve the problem and a written summary of the output screen.

You buy a house and finance $121,000 for 30 years at an interest rate of 7.2%. You are told that your payments would be $821.33 for the next 360 months. You find out that you have $25 extra each month that you can put on you house payment. If you pay an extra $25 a month, how long would it take you to pay off the house and how much interest would you save?

Key strokes:

Input screen:

Output screen:

Blackline Masters, Financial Math Page 172 Louisiana Comprehensive Curriculum, Revised 2008 Unit 6, Specific Assessments, Activity 11, House Savings

Key strokes: Press APPS, highlight 1, press ENTER, highlight 1, press ENTER

Input screen: Enter 0 (N=) press ENTER Enter 7.2 (I%=) press ENTER Enter 121000 (PV=) press ENTER Enter –846.33-25 (PMT=) press ENTER Enter 0 (FV=) press ENTER Enter 12 (P/Y=) press ENTER Highlight the 0 after N= press 2nd SOLVE Clear home screen Enter 360 * 821.33 – 846.33 * 326.09 press ENTER (NOTE: This is the money you would save if you paid $25 extra per month.)

Output screen:

Blackline Masters, Financial Math Page 173 Louisiana Comprehensive Curriculum, Revised 2008 Unit 6, Specific Assessments, Activity 13, Reciprocal Teaching Rubric

Reciprocal Teaching Rubric

CATEGORY (25 - 22) (21-19) (18-14) (13-8) High quality Above Average Average Below Average Focus on the Consistently stays Focuses on the task Focuses on the task Rarely focuses on the task focused on the task and what needs to be and what needs to be task and what needs to and what needs to be done most of the time. done some of the be done. Lets others done. Very self- Other group members time. Other group do the work. directed. can count on this members must person. sometimes nag, prod, and remind to keep this person on-task. Quality of Work Provides work of the Provides high quality Provides work that Provides work that highest quality. work. occasionally needs to usually needs to be be checked/redone by checked/redone by other group members others to ensure to ensure quality. quality.

Focus on the Consistently stays Focuses on the task Focuses on the task Rarely focuses on the task focused on the task and what needs to be and what needs to be task and what needs to and what needs to be done most of the time. done some of the be done. Lets others done. Very self- Other group members time. Other group do the work. directed. can count on this members must person. sometimes nag, prod, and remind to keep this person on-task. Time- Routinely uses time Usually uses time well Tends to Rarely gets things management well throughout the throughout the project, procrastinate, but done by the deadlines project to ensure but may have always gets things AND group has to things get done on procrastinated on one done by the deadlines. adjust deadlines or time. Group does not thing. Group does not Group does not have work responsibilities have to adjust have to adjust to adjust deadlines or because of this deadlines or work deadlines or work work responsibilities person's inadequate responsibilities responsibilities because of this time management. because of this because of this person's person's person's procrastination. procrastination. procrastination.

Rubric generated at: http://rubistar.4teachers.org/

Blackline Masters, Financial Math Page 174 Louisiana Comprehensive Curriculum, Revised 2008 Unit 7, Activity 2, Dealer’s Cost Worksheet

Name:______

Directions: For each problem given, complete a Dealer’s Cost Worksheet. 1. List the MSRP of the: a. auto base price b. all options individually 2. Record the dealer’s cost percentage given in the problem onto the worksheet. 3. Calculate the dealer’s cost of each item listed. 4. Calculate the total dealer’s cost, dealer’s profit in dollars and as a percentage.

Dealer’s Cost Worksheet Dealer’s Cost Vehicle / Options MSRP Dealer’s Cost Percentage

Total Dealer’s Cost

Dealer’s Profit if all Options Are Purchased Percentage of Dealer Profit

Dealer’s Profit If All Options Are Purchased Percentage of Dealer Profit

Name______

Task: 1. Use the monthly payment table below to complete each Automobile Rebate Worksheet.

Monthly Payment on a $100 Simple Interest Installment Loan Term Annual Percentage Rate in 8% 9% 10.5% 11.5% 12% 14% 15% 16% 17% 18% 24% months 6 17.06 17.11 17.18 17.23 17.25 17.35 17.40 17.45 17.50 17.55 17.85 12 8.70 8.75 8.81 8.86 8.88 8.98 9.03 9.07 9.12 9.17 9.46 18 5.91 5.96 6.03 6.08 6.10 6.19 6.24 6.29 6.33 6.38 6.67 24 4.52 4.57 4.64 4.68 4.71 4.80 4.85 4.90 4.94 4.99 5.29 30 3.69 3.73 3.80 3.85 3.87 3.97 4.02 4.07 4.11 4.16 4.46 36 3.13 3.18 3.25 3.30 3.32 3.42 3.47 3.52 3.57 3.62 3.92 40 2.86 2.90 2.97 3.02 3.05 3.14 3.19 3.24 3.29 3.34 3.66 48 2.44 2.49 2.56 2.61 2.63 2.73 2.78 2.83 2.89 2.94 3.26 60 2.03 2.08 2.15 2.20 2.22 2.33 2.38 2.43 2.49 2.54 2.88

Automobile Rebate Worksheet #1 Vehicle / Options MSRP Cost without rebate Cost with rebate Base price $21,060 Monthly Payment: Monthly Payment: Alarm system $500 Larger wheels & $945 tires Accent stripes $170 Total Amount Total Amount Leather seats $895 Repaid: Repaid: Extended warranty $615 Destination charge $465 Total Finance Total Finance TOTAL MSRP: $24,650 Charge: Charge: Rebate: 2,000 APR: 10.5% Term: 48 months

Total cost of car without rebate: Total cost of car with rebate: Actual savings with rebate applied: Percentage of savings with rebate applied:

Automobile Rebate Worksheet #2 Vehicle / Options MSRP Cost without rebate Cost with rebate Base price $16,995 Monthly Payment: Monthly Payment: Alarm system - Larger wheels & - tires Accent stripes $150 Total Amount Total Amount Leather seats - Repaid: Repaid: Extended warranty $850 Destination charge $478 Total Finance Total Finance TOTAL MSRP: $18,473 Charge: Charge: Rebate: 1,500 APR: 17% Term: 60 months

Automobile Rebate Worksheet #3 Vehicle / Options MSRP Cost without rebate Cost with rebate Base price $39,445 Monthly Payment: Monthly Payment: Alarm system $200 Larger wheels & $1,100 tires Accent stripes - Total Amount Total Amount Leather seats $1,300 Repaid: Repaid: Extended warranty Not offered Destination charge $760 Total Finance Total Finance TOTAL MSRP: $42,805 Charge: Charge: Rebate: 4,000 APR: 8% Term: 60 months

Blackline Masters, Financial Math Page 178 Louisiana Comprehensive Curriculum, Revised 2008 Unit 7, Activity 3, Rebate Worksheet with Answers

Unit 8, Activity 3

Solutions. Automobile Rebate Worksheet #1 Cost without rebate Cost with rebate Total cost of car without rebate: Monthly Monthly $30,289.92 Payment: Payment: Total cost of car with rebate: $27,832.32 $631.04 $579.84 Actual savings with rebate applied: Total Amount Total Amount $2,457.60 Repaid: Repaid: Percentage of savings with rebate $30,289.92 $27,832.32 applied: Total Finance Total Finance 8.1% Charge: Charge: $5,639.92 $5,182.32

Automobile Rebate Worksheet #2 Cost without rebate Cost with rebate Total cost of car without rebate: Monthly Monthly $27,598.80 Payment: Payment: Total cost of car with rebate: $25,357.80 $459.98 $422.63 Actual savings with rebate applied: Total Amount Total Amount $2,241.00 Repaid: Repaid: Percentage of savings with rebate $27,598.80 $25,357.80 applied: Total Finance Total Finance 8.1% Charge: Charge: $9,125.80 $8,384.80

Automobile Rebate Worksheet #3 Cost without rebate Cost with rebate Total cost of car without rebate: Monthly Monthly $52,136.40 Payment: Payment: Total cost of car with rebate: $47,264.40 $868.94 $787.74 Actual savings with rebate applied: Total Amount Total Amount $4,872.00 Repaid: Repaid: Percentage of savings with rebate $52,136.40 $47,264.40 applied: Total Finance Total Finance 9.3% Charge: Charge: $9,331.40 $8,459.40

Blackline Masters, Financial Math Page 179 Louisiana Comprehensive Curriculum, Revised 2008 Unit 7, Activity 4, Used Auto Worksheet

Name:______

National Automobile Dealer’s Association publishes a book that contains prices for used automobiles. The book has prices for two different categories for each vehicle: Average Retail Price and Average Trade-In Price. We will use the NADA website to complete this activity. http://www.nadaguides.com/default.aspx Choose: Used Car Prices

Task: Use a family vehicle with the actual mileage, condition and options of the vehicle. Complete the worksheet below for your vehicle.

Used Vehicle Pricing Worksheet Vehicle

Mileage:

Clean Trade-In Clean Retail Value

Options (List options present on vehicle.)

Total Price:

Blackline Masters, Financial Math Page 180 Louisiana Comprehensive Curriculum, Revised 2008 Unit 7, Activity 7, Spreadsheet Depreciation

Task: 1. Create a spreadsheet, using Microsoft Excel®, to calculate the annual depreciation of the automobile in the problem below. The spreadsheet should calculate the amount of depreciation and the resale value. Model your spreadsheet on the example below. 2. Create a chart of data and a graph of the year of ownership and the resale value. 3. Save your chart and graph on a disk using your name as the file name. Print the graph. 4. Use the graph to predict in what year of ownership the vehicle will be worth approximately $10,000.

Problem.

A new car bought for $38,240 is estimated to depreciate by the following percentages of the original cost during the first 10 years: 26, 21, 14, 10, 8, 7, 6, 5, 4, 3. How can these percents be used to form a spreadsheet and a graph to represent the resale value?

Percent of Amount of Year Resale Value Example chart. Depreciation Depreciation

0 $52,920 1 25% $9,560 $28,680 2 20% $5,736 $22,944 3 12% $2,753 $20,191 4 10% $2,019 $18,172 5 8% $1,454 $16,718 6 7% $1,170 $15,548 7 6% $933 $14,615 8 5% $731 $13,884 9 4% $555 $13,329 10 3% $400 $12,929

Depreciation Example graph. $60,000.00

$50,000.00 s r a

l $40,000.00 l o D $30,000.00 n i

l $20,000.00 a V $10,000.00

$0.00 1 2 3 4 5 6 7 8 9 10 11 Year of Ownership

Blackline Masters, Financial Math Page 181 Louisiana Comprehensive Curriculum, Revised 2008 Unit 7, Activity 7, Spreadsheet Depreciation with Answers

Year of Percent of Depreciation Amount of Depreciation Resale Value Ownership

0 $38,240.00 1 26% $9,942.40 $28,297.60 2 21% $5,942.50 $22,355.10 3 14% $3,129.71 $19,225.39 4 10% $1,922.54 $17,302.85 5 8% $1,384.23 $15,918.62 6 7% $1,114.30 $14,804.32 7 6% $888.26 $13,916.06 8 5% $695.80 $13,220.26 9 4% $528.81 $12,691.45 10 3% $380.74 $12,310.70

Depreciation

45,000 40,000 35,000 s r a

l 30,000 l o

D 25,000

20,000 e u

l 15,000 a

V 10,000 5,000 0 1 2 3 4 5 6 7 8 9 10 11 Year of Ownership

Estimated year when $10,000 value is reached: 12-13

Blackline Masters, Financial Math Page 182 Louisiana Comprehensive Curriculum, Revised 2008 Unit 7, Activity 7, Depreciation Story Chain

Task: 1. This is a group activity, arrange into groups of three. 2. Each group will create an automobile depreciation problem similar to the one used in part one of this activity. However, the problem you create must be a linear depreciation problem. We discussed linear depreciation in activity 6. 3. In this story chain one member will begin writing a linear depreciation problem, the second member will add information and the third will complete the problem, as in this example. Linear Depreciation Example Student 1: Buddy’s new car cost $45,603. He expects to keep the car 10 years.

Student 2: He estimates the car will depreciate linearly by 9.5% of the original cost during each of the first 10 years.

Student 3: Make both a table and a graph showing the resale value of the car over the ten years Buddy expects to keep it.

4. When the group’s problem is complete, bring it to me to read and approve. 5. Produce a spreadsheet for the linear depreciation problem you created using Microsoft Excel® with graph. 6. Print the graph. 7. Turn-in your problem and graph.

Linear Depreciation Problem Student 1:

Student 2:

Student 3:

Blackline Masters, Financial Math Page 183 Louisiana Comprehensive Curriculum, Revised 2008 Unit 7, Activity 9, Buying/Leasing Opinionnaire

Name:______

Directions: Read each statement carefully and decide whether you agree or disagree with it, placing a check mark in the appropriate Before column.

When we have finished with the presentation, decide whether your anticipations need to be changed by placing a check mark in the appropriate After column. Before After Agree Disagree Agree Disagree

1. Leasing is a great way to get into my first car.

2. “Up-front” costs for leasing are less than for buying.

3. I should lease only if I plan to keep the vehicle a long time.

4. Monthly payments are less if I lease the vehicle.

5. If I drive a lot, I’m better off just buying the vehicle in the beginning.

Blackline Masters, Financial Math Page 184 Louisiana Comprehensive Curriculum, Revised 2008 Unit 7, Activity 9, Buying Vs Leasing Notes

Task: 1. There are key differences in buying and leasing an automobile. 2. Use this page to take notes as I cover the PowerPoint® “Keys To Leasing”.

Buying vs. Leasing an Automobile Difference Buying Leasing

Ownership

Up-front costs

Monthly payments

Early termination

Vehicle return

Future value

Mileage

Excessive wear

End of term

Blackline Masters, Financial Math Page 185 Louisiana Comprehensive Curriculum, Revised 2008 Unit 7, Activity 9, Buying Vs Leasing Notes with Answers

Buying vs. Leasing an Automobile Difference Buying Leasing Ownership You own the vehicle and get to You do not own the vehicle, keep it at the end of the and must return it at the end of financing term. the lease, or buy it. Up-front costs Include down payment, taxes, Include first months payment, registration & other fees. security deposit, down payment, taxes, registration and other fees. Monthly payments Loan payments are usually Lease payments are usually higher because you are paying lower because you are paying for the entire price of the vehicle only for the vehicle’s during the term of the loan. depreciation during the lease term. Early termination Can be terminated early by Often penalties are assessed paying-off the loan early or by for early lease termination. trading-in the vehicle for another vehicle. Vehicle return N/A Vehicle must be maintained in accordance with manufacturers requirement. Vehicle may not have modifications such as new wheels and tires or aftermarket stereo. Future value Market determined Often determined as an educated guess at the time of lease; this is called residual value. Mileage Unlimited; no restrictions Leases commonly set mileage limits and empose penalties for excess mileage at time of lease termination. Excessive wear No restrictions Vehicle must be maintained in accordance with manufacturers requirements. There are penalties for excessive wear and/or vehicle damage of any form. End of term You own the vehicle. You do not own the vehicle. Often you may purchase a leased vehicle at the end of the lease contract for the predetermined residual value.

Blackline Masters, Financial Math Page 186 Louisiana Comprehensive Curriculum, Revised 2008 Unit 7, Activity 10, Rental Cost Worksheet

Rental Cost Worksheet Size of vehicle: Daily rate: Weekly rate: Mileage charge: Gasoline cost per $ $ $ gallon: $ Insurance fees: Days rented: Weeks rented: Miles driven: $

Total rental fee: Total mileage Total gasoline $ charge: cost: $ $

Total cost of renting the vehicle: Add: insurance fees, total rental fee, total mileage charge & total Total cost of renting thegasoline vehicle: cost. $

Rental Cost Worksheet Size of vehicle: Daily rate: Weekly rate: Mileage charge: Gasoline cost per $ $ $ gallon: $ Insurance fees: Days rented: Weeks rented: Miles driven: $

Total rental fee: Total mileage Total gasoline $ charge: cost: $ $

Total cost of renting the vehicle: Add: insurance fees, total rental fee, total mileage charge & total Total cost of renting thegasoline vehicle: cost. $

Blackline Masters, Financial Math Page 187 Louisiana Comprehensive Curriculum, Revised 2008 Unit 7, Activity 11, Louisiana Liability Minimum

Organize your interview notes (3x5 cards) into a series of small, 8 ½” by 11” poster- like illustrations to represent the questions and answers from the interview. This series of small posters would resemble a PowerPoint presentation, but is done by hand. You may include any pamphlets that the agent may have given you.

Blackline Masters, Financial Math Page 188 Louisiana Comprehensive Curriculum, Revised 2008 Unit 7, Activity 11, Louisiana Liability Minimum

Fifty-four percent of motor vehicle crash deaths among teenagers in 2005 occurred on Friday, Saturday, or Sunday.

Half of teenage motor vehicle crash deaths in 2005 occurred between 3pm and midnight.

Source: Insurance Institute for Highway Safety

Blackline Masters, Financial Math Page 189 Louisiana Comprehensive Curriculum, Revised 2008 Unit 7, Activity 12, Gasoline Reciprocal Teaching Record

Introduction to How Gas Prices Work Predictions:

Questions:

Clarifications:

Summary:

Breakdown of Gas Prices Predictions:

Questions:

Clarifications:

Summary:

Gas Prices Across the Country Predictions:

Questions:

Clarifications:

Summary:

OPEC and Gas Prices Around the World Predictions:

Questions:

Clarifications:

Summary:

Cause and Effect

Predictions:

Questions:

Clarifications:

Summary:

Domestic Supplies

Predictions:

Questions:

Clarifications:

Summary:

Arctic National Wildlife Refuge

Predictions:

Questions:

Clarifications:

Summary:

Out of Gas

Predictions:

Questions:

Clarifications:

Summary:

Blackline Masters, Financial Math Page 197 Louisiana Comprehensive Curriculum, Revised 2008 Unit 7, General Assessments, Transportation Jeopardy

Directions: Question the following answers you learned in this unit. Remember to phrase your answer in the form of a question. Answer Question The averaged fee for transporting all vehicles of a particular type to all dealerships. The words forming the acronym MSRP. The price I would expect to receive for trading-in my used auto. The vehicle operating costs that do not change from month-to- month. An example of a variable operating expense. The name given to the decrease in value from year-to-year of my vehicle. The price I would advertise to sell a used vehicle. Equations that perform calculations on values in your spreadsheet worksheet, starts with an equal sign (=). The type of lease that allows me the option to purchase the vehicle at the end of the lease contract. The predetermined value of an automobile in a lease contract. Leads to vehicle ownership when the initial contract is paid. The form of vehicle purchase that doesn’t allow me to modify my vehicle. The name given to using a vehicle on a short-term basis. 10/20/10. The insurance coverage for property loss. Because statistically they cause more accidents than females of the same age. The leading cause of death among 13-19-year-old males and females in the United States. The acronym for the Organization of the Petroleum Exporting Countries. Accounts for half of the price of gasoline at the pump. The largest emergency petroleum supply in the world. The typical time of year when demand for gas spikes.

Blackline Masters, Financial Math Page 198 Louisiana Comprehensive Curriculum, Revised 2008 Unit 7, General Assessments, Transportation Jeopardy with Answers

Answer Question The averaged fee for transporting all vehicles of a particular type What is the destination to all dealerships. charge? The words forming the acronym MSRP. What is Manufacturer’s Suggested Retail Price? The price I would expect to receive for trading-in my used auto. What is Clean Trade-In Value? The vehicle operating costs that do not change from month-to- What are fixed costs? month. An example of a variable operating expense. What is gasoline cost? The name given to the decrease in value from year-to-year of my What is vehicle depreciation? vehicle. The price I would advertise to sell a used vehicle. What is Clean Retail Value? Equations that perform calculations on values in your What are formulas? spreadsheet worksheet, starts with an equal sign (=). The type of lease that allows me the option to purchase the What is an open-ended vehicle at the end of the lease contract. lease? The predetermined value of an automobile in a lease contract. What is residual, or future, value? Leads to vehicle ownership when the initial contract is paid. What is buying a vehicle? The form of vehicle purchase that doesn’t allow me to modify What is leasing a vehicle? my vehicle. The name given to using a vehicle on a short-term basis. What is renting a vehicle? 10/20/10. What is the Louisiana minimum liability insurance? The insurance coverage for property loss. What does the third number represent? Because statistically they cause more accidents than females of Why does insurance cost the same age. more for teenage males? The leading cause of death among 13-19-year-old males and What is motor vehicle females in the United States. accidents? The acronym for the Organization of the Petroleum Exporting What is OPEC? Countries. Accounts for half of the price of gasoline at the pump. What is the cost of crude oil? The largest emergency petroleum supply in the world. What is the Strategic Petroleum Reserve? The typical time of year when demand for gas spikes. What is summer?

Blackline Masters, Financial Math Page 199 Louisiana Comprehensive Curriculum, Revised 2008 Unit 7, General Assessments, Car Purchase Essay Rubric

Car Purchase Essay Name: ______Teacher: Date Submitted: ______Title of Work: ______Criteria Points 1 2 3 4 Reader has Student presents Information in Sequence of difficulty following information in logical, interesting Organization information is difficult work because logical sequence ____ sequence which to follow. student jumps which reader can reader can follow. around. follow. Student is Student does not have Student uncomfortable with Student is at ease Content grasp of information; demonstrates full content and is able with content, but ____ Knowledge student cannot answer knowledge (more to demonstrate basic fails to elaborate. questions about subject. than required). concepts. Presentation has Presentation has no Work has four or more Presentation has no Grammar and three misspellings more than two spelling errors and/or misspellings or ____ Spelling and/or grammatical misspellings and/or grammatical errors. grammatical errors. errors. grammatical errors. Work has three or Work has one or Work is neatly Neatness Work is illegible. four areas that are two areas that are ____ done. sloppy. sloppy. Work does not have Work displays the Reference section Work displays no the appropriate correct number of References was completed ____ references. number of required references, written incorrectly. references. correctly. Total----> ____ TeacherComments: Comments:

Blackline Masters, Financial Math Page 200 Louisiana Comprehensive Curriculum, Revised 2008 Unit 7, General Assessments, Quiz

1. J.J. Johnson plans to buy a Bentley Continental GT sedan with a MSRP of $178,236.17. The optional features JJ is considering and their suggested prices follow: GPS alarm system, $2,200; 22” chrome wheels with run-flat tires, $5,785 and extended warranty, $3,128. What is the MSRP of JJ’s Bentley if the destination charge is $2,008?

2. Giancarlo Valenti bought a beautiful yellow Lamborghini Mercielago with an MSRP of $328,150. A sales tax of 8.387% will be charged on the total purchase. Registration and license costs will be $359. Giancarlo plans to make an 11% down payment. (Assume the down payment is made before taxes.) a. What is the delivered price of the car? b. What is the balance due on this purchase?

3. Ralf Emmerson bought a new Corvette for $43,567. He drove the car for three years and then traded it in on a new Vette for $29,995. a. The total depreciation for the three-year period was? $______

b. The average annual depreciation was? $______

c. The rate of depreciation was? ______%

4. Rebecca Renee Roberts-Reynolds paid $123,195 for her Mercedes-Benz S500 AMG sedan. Her expenses for the first year were: gas, $5,193.14; oil, $101.19; insurance, $1,951.02; repairs and upkeep, $122.70; license plates, $48; loss of interest at $2,338.23 on the car’s original cost; and depreciation estimated at 14%.

a. The annual depreciation was? $______

b. The total car operating expense for the year was? $______

Vehicle Used For Type of Insurance Coverage Limits Racing on the Touring Europe on Coverage Driving to Work Weekends Holiday $25/$75,000 19.94 122.93 41.92 Bodily Injury $200/$300,000 78.93 404.99 128.92 $15,000 99.12 235.19 165.22 Property Damage $35,000 127.56 414.00 196.99 No deductible 359.84 1,234.91 807.68 Collision $1,000 deductible 19.98 1001.19 345.71 $100 deductible 130.92 312.38 147.17 Comprehensive $250 deductible 103.52 289.63 126.84

5. Use table above to find the annual premium for each below. a. For driving to work, $25/$75,000 bodily injury, $35,000 property damage, no deductible on collision and $100 deductible on comprehensive. ______

b. For touring Europe on Holiday, $200/$300,000 bodily injury, $35,000 property damage, $1,000 deductible collision and $100 deductible comprehensive. ______

Blackline Masters, Financial Math Page 201 Louisiana Comprehensive Curriculum, Revised 2008 Unit 7, General Assessments, Quiz with Answers

1. $191,357.17

2. a. $356,061.05

b. $319,925.06

3. a. $13,572

b. $4,524

c. 10.4%

4. a. $17,247.30

b. $27,001.58

5. a. $637.86

b. $818.79

Blackline Masters, Financial Math Page 202 Louisiana Comprehensive Curriculum, Revised 2008 Unit 7, Specific Assessments, Activity 6, TVM Master

Directions: Use a graphing calculator to answer the questions below.

Latisha is buying a car from a dealer that offers a $1500 rebate that can be taken either in cash or used toward the down payment. The total cost of the car including taxes is $21,850, and since she is putting 15% down, they are financing it at 7.9% interest for 60 months. Use the Finance Mode and TVM to determine:

1. Her monthly payments 2. Her total interest 3. How much her monthly payments would be if she added the rebate to her down payment. 4. Her total interest if she added the rebate to her down payment 5. How much additional savings she would get by adding her rebate to the down payment.

Blackline Masters, Financial Math Page 203 Louisiana Comprehensive Curriculum, Revised 2008 Unit 7, Specific Assessments, Activity 6, TVM Master with Answers

1. Her monthly payments. $441.99 2. Her total interest. $4,669.72 3. Her monthly payments would be if she added the rebate to her down payment. $411.65 4. Her total interest if she added the rebate to her down payment. $4,349.13 5. How much additional savings would she get by adding her rebate to the down payment? $320.59

Blackline Masters, Financial Math Page 204 Louisiana Comprehensive Curriculum, Revised 2008 Unit 7, Specific Assessments, Activity 7, Depreciation Analysis

Directions: Analyze the line graphs and estimate the answer for the accompanying questions.

Use the graph above to answer question 1 – 3. 1. After how many years has the car lost all its value? 2. After how many years has the car lost half its value? 3. What is the approximate value of the car after 5 years?

Use the graph at right to answer questions 4 – 6. 4. In which year of its life does the car lose the most value? 5. After about how many years has the car lost half its value? 6. What is the car’s approximate value after 4 years?

Use the graph at left to answer questions 7 – 9. 7. During which year does the car lose the most value? 8. After about how many years has the car lost half its value? 9. When is the automobile worth $19,000?

10. Which graph would you surmise represents typical automobile depreciation? Explain your answer.

Test Solution.

1. About 7 years. 2. About 3.5 years. 3. About $9,000. 4. During the first year of ownership. 5. About 2 years. 6. About $6,000. 7. During the third year of ownership. 8. About 3 years. 9. Approximately the beginning of the second year of ownership. 10. Student answers will vary. The second graph, because I have learned that automobiles depreciate more rapidly at the beginning of their useable life than later in their useable life. This is why automobile value can be found in the purchasing of late model used vehicles.

Blackline Masters, Financial Math Page 207 Louisiana Comprehensive Curriculum, Revised 2008 Unit 7, Specific Assessments, Activity 11, Insurance Posters Rubric

Possible Earned Assessment Element Points Peer Teacher The main theme is clear when one first looks at the

posters. A title helps to identify the theme. Appropriate and accurate main ideas support the

theme. There is wholeness about the posters. They do not seem like a collection of information. The information in the posters is accurate and shows that the student thoroughly understands the concepts. Space, shapes, textures, and colors provide information themselves and add to the over-all effectiveness of the posters. Pictures, photographs, drawings, diagrams, graphs, or other similar

devices add to the over-all effectiveness of the posters. The format of the posters is appropriate to the task and to the audience for which it is intended. The posters accomplish their purpose with their

intended audience. The posters are very neat and presentable. The posters are creative and interesting.

Total:

After the posters are all hung on the walls of the classroom, ask the students to assess three poster sets from other students. Average the peer assessments onto the one rubric sheet where the teacher assesses the poster set. The student component of the grading should be no more than 25% of the overall grade for this activity.

Blackline Masters, Financial Math Page 208 Louisiana Comprehensive Curriculum, Revised 2008 Unit 8, Activity 1, Mortgage Loan Table

Monthly Payment for a $1000 Mortgage Loan Interest Length of Loan in Years Rate 10 15 20 25 30 5% 10.61 7.91 6.60 5.85 5.37 5.5% 10.85 8.17 6.88 6.14 5.68 6% 11.10 8.44 7.16 6.44 6.00 6.5% 11.35 8.71 7.46 6.75 6.32 7% 11.61 8.99 7.75 7.07 6.65 7.5% 11.87 9.27 8.06 7.39 6.99 8% 12.13 9.56 8.36 7.72 7.34 8.5% 12.40 9.85 8.68 8.05 7.69 9% 12.67 10.14 9.00 8.39 8.05 9.5% 12.94 10.44 9.32 8.74 8.41 10% 13.22 10.75 9.65 9.09 8.78

Blackline Masters, Financial Math Page 209 Louisiana Comprehensive Curriculum, Revised 2008 Unit 8, Activity 3, Information About RESPA

The Real Estate Settlement Procedures Act (RESPA) is a consumer protection statute, first passed in 1974. The purposes of RESPA are: 1. to help consumers become better shoppers for settlement services. 2. to eliminate kickbacks and referral fees that unnecessarily increase the costs of certain settlement services.

Details about RESPA

Corresponding with the above purposes: 1. RESPA requires that borrowers receive disclosures at various times. Some disclosures spell out the costs associated with the settlement, outline lender servicing and escrow account practices, and describe business relationships between settlement service providers.

2. RESPA also prohibits certain practices that increase the cost of settlement services. Section 8 of RESPA prohibits a person from giving or accepting any thing of value for referrals of settlement service business related to a federally related mortgage loan. It also prohibits a person from giving or accepting any part of a charge for services that are not performed. Section 9 of RESPA prohibits home sellers from requiring home buyers to purchase title insurance from a particular company.

RESPA in general

RESPA covers loans secured with a mortgage placed on a one-to-four family residential property. These include most purchase loans, assumptions, refinances, property improvement loans, and equity lines of credit. HUD's Office of RESPA and Interstate Land Sales is responsible for enforcing RESPA.

RESPA required disclosures:

At the time of loan application

When borrowers apply for a mortgage loan, mortgage brokers and/or lenders must give the borrowers:  a Special Information Booklet, which contains consumer information regarding various real estate settlement services. (Required for purchase transactions only).  a Good Faith Estimate (GFE) of settlement costs, which lists the charges the buyer is likely to pay at settlement. This is only an estimate and the actual charges may differ. If a lender requires the borrower to use a particular settlement provider, then the lender must disclose this requirement on the GFE.

 a Mortgage Servicing Disclosure Statement, which discloses to the borrower whether the lender intends to service the loan or transfer it to another lender. It also provides information about complaint resolution.

If the borrowers don't get these documents at the time of application, the lender must mail them within three business days of receiving the loan application. If the lender turns down the loan within three days, however, then RESPA does not require the lender to provide these documents.

The RESPA statute does not provide an explicit penalty for the failure to provide the Special Information Booklet, Good Faith Estimate or Mortgage Servicing Statement. However, bank regulators may choose to impose penalties on lenders who fail to comply with federal law. Please read the section on RESPA enforcement for more information.

Disclosures before settlement/closing occurs

The terms "settlement" and "closing" can be and are used interchangeably. An Affiliated Business Arrangement (AfBA) Disclosure is required whenever a settlement service provider involved in a RESPA covered transaction refers the consumer to a provider with whom the referring party has an ownership or other beneficial interest.

The referring party must give the AfBA disclosure to the consumer at or prior to the time of referral. The disclosure must describe the business arrangement that exists between the two providers and give the borrower an estimate of the second provider's charges.

Except in cases where a lender refers a borrower to an attorney, credit reporting agency or real estate appraiser to represent the lender's interest in the transaction, the referring party may not require the consumer to use the particular provider being referred.

The HUD-1 Settlement Statement is a standard form that clearly shows all charges imposed on borrowers and sellers in connection with the settlement. RESPA allows the borrower to request to see the HUD-1 Settlement Statement one day before the actual settlement. The settlement agent must then provide the borrowers with a completed HUD-1 Settlement Statement based on information known to the agent at that time.

Disclosures at settlement

The HUD-1 Settlement Statement shows the actual settlement costs of the loan transaction. Separate forms may be prepared for the borrower and the seller. Where it is not the practice that the borrower and the seller both attend the settlement, the HUD-1 should be mailed or delivered as soon as practicable after settlement.

The Initial Escrow Statement itemizes the estimated taxes, insurance premiums and other charges anticipated to be paid from the Escrow Account during the first twelve months of the loan. It lists the Escrow payment amount and any required cushion. Although the statement is usually given at settlement, the lender has 45 days from settlement to deliver it.

Disclosures after settlement

Loan servicers must deliver to borrowers an Annual Escrow Statement once a year. The annual Escrow account statement summarizes all escrow account deposits and payments during the servicer's twelve month computation year. It also notifies the borrower of any shortages or surpluses in the account and advises the borrower about the course of action being taken.

A Servicing Transfer Statement is required if the loan servicer sells or assigns the servicing rights to a borrower's loan to another loan servicer. Generally, the loan servicer must notify the borrower 15 days before the effective date of the loan transfer. As long the borrower makes a timely payment to the old servicer within 60 days of the loan transfer, the borrower cannot be penalized. The notice must include the name and address of the new servicer, toll-free telephone numbers, and the date the new servicer will begin accepting payments.

RESPA Explained: Consumer Protections and Prohibited Practices

Section 8: kickbacks, fee-splitting, unearned fees

Section 8 of RESPA prohibits anyone from giving or accepting a fee, kickback or any thing of value in exchange for referrals of settlement service business involving a federally related mortgage loan. In addition, RESPA prohibits fee splitting and receiving unearned fees for services not actually performed.

Violations of Section 8's anti-kickback, referral fees and unearned fees provisions of RESPA are subject to criminal and civil penalties. In a criminal case a person who violates Section 8 may be fined up to $10,000 and imprisoned up to one year. In a private law suit a person who violates Section 8 may be liable to the person charged for the settlement service an amount equal to three times the amount of the charge paid for the service.

Section 9: Seller required title insurance

Section 9 of RESPA prohibits a seller from requiring the home buyer to use a particular title insurance company, either directly or indirectly, as a condition of sale. Buyers may sue a seller who violates this provision for an amount equal to three times all charges made for the title insurance.

Section 10: Limits on escrow accounts

Section 10 of RESPA sets limits on the amounts that a lender may require a borrower to put into an escrow account for purposes of paying taxes, hazard insurance and other charges related to the property. RESPA does not require lenders to impose an escrow account on borrowers; however, certain government loan programs or lenders may require escrow accounts as a condition of the loan.

During the course of the loan, RESPA prohibits a lender from charging excessive amounts for the escrow account. Each month the lender may require a borrower to pay into the escrow account no more than 1/12 of the total of all disbursements payable during the year, plus an amount necessary to pay for any shortage in the account. In addition, the lender may require a cushion, not to exceed an amount equal to 1/6 of the total disbursements for the year. The lender must perform an escrow account analysis once during the year and notify borrowers of any shortage. Any excess of $50 or more must be returned to the borrower.

RESPA Enforcement

Civil law suits Individuals have one (1) year to bring a private law suit to enforce violations of Section 8 or 9. A person may bring an action for violations of Section 6 within three years. Lawsuits for violations of Section 6, 8, or 9 may be brought in any federal district court in the district in which the property is located or where the violation is alleged to have occurred.

HUD, a State Attorney General or State insurance commissioner may bring an injunctive action to enforce violations of Section 6, 8 or 9 of RESPA within three (3) years.

Loan servicing complaints

Section 6 provides borrowers with important consumer protections relating to the servicing of their loans. Under Section 6 of RESPA, borrowers who have a problem with the servicing of their loan (including escrow account questions), should contact their loan servicer in writing, outlining the nature of their complaint. The servicer must acknowledge the complaint in writing within 20 business days of receipt of the complaint. Within 60 business days the servicer must resolve the complaint by correcting the account or giving a statement of the reasons for its position. Until the complaint is resolved, borrowers should continue to make the servicer's required payment.

A borrower may bring a private law suit, or a group of borrowers may bring a class action suit, within three years, against a servicer who fails to comply with Section 6's provisions. Borrowers may obtain actual damages, as well as additional damages if there is a pattern of noncompliance.

Other enforcement actions

Under Section 10, HUD has authority to impose a civil penalty on loan servicers who do not submit initial or annual escrow account statements to borrowers. Borrowers should contact HUD's Office of RESPA and Interstate Land Sales to report servicers who fail to provide the required escrow account statements.

Filing a RESPA complaint

Persons, who believe a settlement service provider has violated RESPA in an area in which the Department has enforcement authority (primarily sections 6, 8 and 9), may wish to file a complaint. The complaint should outline the violation and identify the violators by name, address and phone number. Complainants should also provide their names and phone numbers for follow up questions from HUD. Requests for confidentiality will be honored. Complaints should be sent to: Director, Office of RESPA and Interstate Land Sales US Department of Housing and Urban Development Room 9154 451 7th Street, SW Washington, DC 20410

Adopted from: U.S. Department of Housing and Urban Development 451 7th Street, S.W., Washington, DC 20410 Telephone: (202) 708-1112

Blackline Masters, Financial Math Page 214 Louisiana Comprehensive Curriculum, Revised 2008 Unit 8, Activity 3, RESPA Notes

When did RESPA become law?

What are its purposes?

What does RESPA cover, in general?

What are the required disclosures to the home buyer?

What does RESPA have to do with closing costs?

What is an Initial Escrow Statement & what does it do for the homebuyer?

Blackline Masters, Financial Math Page 215 Louisiana Comprehensive Curriculum, Revised 2008 Unit 8, Activity 3, RESPA Notes

List and explain section 8 of RESPA.

List and explain legal recourses of the disgruntled buyer.

List the complaint contact address at HUD.

Blackline Masters, Financial Math Page 216 Louisiana Comprehensive Curriculum, Revised 2008 Unit 8, Activity 5, Other Housing Costs

Task: 1. This is a group activity, arrange into groups of three or four each. 2. As a group, discuss housing costs beyond mortgage or rent payments. 3. Use the concept map below to record responses. 4. Each circle should have a response. 5. We will discuss the concept maps after all groups are complete.

. Other . Housing Costs

Blackline Masters, Financial Math Page 217 Louisiana Comprehensive Curriculum, Revised 2008 Unit 8, Activity 5, Other Housing Costs with Answers

A completed concept map may look like this. Student answers will vary.

Insurance

$88 Water & Maintenance Sewage $75 $45

Internet Electricity Connection Other Housing $112 $30 Costs

Natural Cable TV Gas $70 $32 Telephone

Blackline Masters, Financial Math Page 218 Louisiana Comprehensive Curriculum, Revised 2008 Unit 8, Activity 7, Homeowners Insurance

Task: 1. Research homeowners insurance to answer: 1. What is homeowners insurance? 2. What is in a standard homeowners insurance policy? 3. Are there different types of policies? 4. Does my homeowners insurance cover flooding? 5. What type of disasters are covered? 6. Can I own a home without homeowners insurance? 7. Can I get insurance if I rent my home? 8. How much homeowners insurance do I need? 9. Do I need separate coverage for jewelry? 10. What factors do insurance companies use to determine the price of your policy? 2. Provide a comprehensive answer to these questions, not just one-sentence answers. 3. Produce a paper, in the form of an outline, containing the answers to the questions. 4. The papers must contain at least one chart or graph. 5. The papers must be typed. 6. Use the web address http://www.iii.org/individuals/homei/ as the primary source. 7. The outline should follow the format below.

I. What is homeowners insurance? a. b. c. II. What is in a standard homeowners insurance policy? a. b. c. III. Are there different types of policies? a. b. c. IV. Does my homeowners insurance cover flooding? (Continue in the same manner.)

Blackline Masters, Financial Math Page 219 Louisiana Comprehensive Curriculum, Revised 2008 Unit 8, Activity 8, Rent Or Buy?

Should I buy or rent a home or apartment?

Top 10 Reasons to Buy a Home

1. It will be Yours and Yours Alone

The freedom of owning your own home cannot begin to compare with the restrictions that renters experience. You can paint the walls the color you like, hammer a nail without the hassles from a landlord.

2. Lifestyle

Homeowners are a different breed. When you live in a neighborhood that is owner occupied, your neighbors, like you, are more willing to invest their time, money, and efforts to improve their property values and community.

3. Equity Buildup

Rental payments are gone once you have made them. But with each mortgage payment, you are “buying” something tangible, you are building equity. The longer you own your home, the larger the equity. At any time you can refinance to "withdraw" your cash equity.

4. Keep Up with Inflation

A home is an investment that helps you keep up with inflation. Although not all homes appreciate at the same rate, and some years are better than others, real estate has historically kept pace with and usually appreciated faster than the rate of inflation.

5. Income Tax Benefits

All interest paid on a mortgage is deductible for income tax purposes. Remember, too, that property taxes and closing points are deductible, and that special tax deductions such as the Homestead Exemption and Energy Credits are also available to homeowners.

6. Payback on Improvements

A renter who makes property improvements does not receive financial benefits from them if they relocate. As a homeowner, you can realize some or all of the costs of improvements when you sell your home.

7. Trade-Up Value

Even if your first home is not your “dream home,” you are working your way up to it.

With appreciation and some improvements, it may provide you with enough equity to make a down payment on your “Dream Home” later.

8. Future Security

Unlike rent, which goes on forever, mortgage payments are temporary, providing you with “rent free” living for your retirement. In addition, a mortgage payment with a fixed interest rate will remain constant over the course of the note. Rental prices typically increase 3-10% per year in many areas.

9. Investment Property

For some, investments in single-family homes are proving to be good tax shelters. You can realize profits and tax benefits from having renters who do not know the benefits of owning a home or investment property.

10. Don’t Let The Mortgage Interest Rate Fool You

You pay much less in interest than the mortgage rate of your loan, because the interest you pay becomes tax deductible. Also deductible are many costs associated with closing your loan.

Do You Know How Much Rent You Pay?

Monthly 3 Years 5 Years 10 Years 15 Years 30 Years Rent $400 $15,431 $27,603 $66,319 $120,619 $453,412 $500 $19,289 $34,504 $82,899 $150,774 $566,765 $600 $23,147 $41,405 $99,478 $180,929 $680,118 $700 $27,005 $48,306 $116,058 $211,084 $793,471 $800 $30,863 $55,207 $132,638 $241,239 $908,823 $900 $34,720 $62,108 $149,218 $271,393 $1,020,176 $1000 $38,578 $69,008 $165,798 $301,548 $1,133,530 $1500 $57,868 $103,513 $248,696 $452,332 $1,700,294

Assuming only a 7% annual Rent Increase

Should You Rent or Own? Rent Own

Deduct mortgage interest and closing points in calculating income tax? No Yes Deduct real estate taxes in calculating income tax? No Yes Build Equity (Savings)? No Yes Hedge against inflation (appreciation and profit potential)? No Yes Improvements within the home become an investment in future value? No Yes Can lease out or sell whenever you want to move? No Yes Feeling of financial security? No Yes Property can be put in trust? No Yes Property can be passed on to heirs? No Yes Property can be later refinanced to "withdraw" cash equity? No Yes Fixed mortgage payments that help stabilize monthly living costs? No Yes

Source: The Mortgage Doctor 5579 South Lewis Avenue Tulsa Oklahoma 74105 Phone 918-746-0700 http://www.docmortgage.com/htm/Ownership%20vs.%20Rent.htm

Blackline Masters, Financial Math Page 222 Louisiana Comprehensive Curriculum, Revised 2008 Unit 8, Activity 9, How Much Can You Afford?

Task: 1. Find, in the newspaper, a real estate listing for a home that you would someday like to own, clip it out, and bring it to class. 2. Go to: http://www.ginniemae.gov/2_prequal/intro_questions.asp? Section=YPTH 3. Use the “How Much Home Can You Afford?” Calculator and your chosen career’s estimated annual income. Refer to the Career Exploration BLM completed in Unit 5, Activity 9, to calculate how much of a mortgage payment you will be able to afford. 4. Use these numbers as inputs: a. Minimum Credit Card Payment: $900 b. Car Payment: $800 c. Other Monthly Obligations: $2000 5. Click “Get Estimate” and print the report. 6. Glue your dream-home listing to the upper-back of the report. 7. Below your listing, answer the question, “Can you afford it?” a. Could you afford the house you chose? b. Why did you choose this house? c. What concessions could you make to modify (lower) your housing wants? 8. Turn-in the report.

Blackline Masters, Financial Math Page 223 Louisiana Comprehensive Curriculum, Revised 2008 Unit 8, General Assessments, Calculation Test

1. The Greenwalds want to buy a condominium priced at $90,000. They will need to make a down payment of 20% and pay closing costs of 3% of the purchase price. a. How much cash will they need for the down payment? b. How much of the purchase price must they borrow? c. How much cash will they need for the closing costs? 2. Ed and Roberta Rogers bought a house at its market value of $70,000. They made a 25% down payment and paid these closing costs: legal fees, $280; property survey, $150; title insurance, $220; inspection fees, $350; loan origination fees, $400. a. What was the amount of the down payment? b. What was the total of the closing costs? c. What percent were the closing costs of the purchase price to the nearest whole percent? 3. Ann Doyle will purchase a house for $53,500 on August 1. The house was appraised at $58,000. On that date, she must make a down payment of 15% of the purchase price and pay these closing costs: loan origination fees, $340; termite inspection fee, $80; legal fees, $420; land survey costs, $115; title insurance, $210; prepaid taxes, $600; points, $535. a. What total amount of cash must Ann have on August 1 to make the purchase? b. What percent are the closing costs of the purchase price, to the nearest tenth of a percent? 4. Tom and Jane Yurko estimate that their home depreciates 2% each year. If the home originally cost $75,300, how much do they estimate for depreciation this year? 5. The home of the Collins family is estimated to depreciate at a rate of 3.2% each year. If the home originally cost $52,700, how much will this home depreciate in 1 year? 6. Artie Brouillard bought a condominium. The former owner originally wanted $85,000 for the home before selling it to Artie for $74,900. If the annual depreciation is estimated at 2.5%, how much will it depreciate this year? 7. Marie Santos bought a house for $55,200 ten years ago. If she estimates depreciation at 1.8% a year, how much has the house depreciated so far? 8. Ezra Wilkins bought a mobile home for $32,000 three years ago. He estimates that the home depreciates at a 5% rate each year. How much does Ezra estimate the mobile home has depreciated so far? 9. The Kerns want to buy a home. Their estimated first-year expenses are: mortgage interest, $7,128; property taxes, $1,800; insurance, $515; depreciation, $1,680; maintenance and repairs, Blackline Masters, Financial Math Page 224 Louisiana Comprehensive Curriculum, Revised 2008 Unit 8, General Assessments, Calculation Test

$1,237. They estimate lost interest income on savings as $1,472. They also expect to save $3,112 on income taxes. Find their net cost of owning their home the first year. 10. Kirk and Edna Rowe own a home. They estimate their expenses to be: mortgage interest, $10,180; property taxes, $3,690; insurance, $833; depreciation, $3,800; maintenance and repairs, $900; lost interest income, $2,375. They expect to save $5,700 on income taxes from home expense. What is their net cost of home ownership? 11. The Solos want to buy a home that costs $55,000. They must make a 30% down payment. They estimate their expenses for the first year to be: mortgage interest, $4,914; property taxes, $1,208; insurance, $260; lost interest income, $1,320; depreciation, 2% of the purchase price; maintenance and repairs, $1,050. They expect to save $1,280 in income taxes because of home expenses. What will be the net cost of the home the first year? 12. Trudy Hertz wants to buy a home for $64,800. She estimates her first-year expenses to be: mortgage interest,$6,005; lost interest of $1,377; property taxes, $850; insurance, $395; depreciation at 2.5% of the purchase price; maintenance and repairs, $1,400. She expects to save $1,847 in taxes. What will be the net cost of owning the home in the first year? 13. After being in effect for 4 years, the rate of interest on Sol Retal’s variable rate mortgage has changed from 12.5% to 10%. Sol’s old monthly payment was $763.25. Sol’s new monthly payment is $655.01. How much less does Sol pay in one year at the new mortgage rate? 14. Rita Metarel’s monthly payment on her original 11.75% variable rate mortgage is $656.12. Eight years later, the interest rate on her mortgage has been raised to 13.25%, and her new monthly payment is $731.74. How much more will Rita pay in one year at the new mortgage rate? 15. Your old $45,000, 30-year, 13.6% mortgage has a monthly payment of $518.98. Over the 6 years since you took out the loan, mortgage rates have dropped. You can now get a mortgage at 9.15%, which will result in a new monthly payment of $377.37. To refinance, you must pay $990 in closing costs and a $510 prepayment penalty. By getting a new mortgage, find the net amount you will save in… a. The first year. b. The second year.

Blackline Masters, Financial Math Page 225 Louisiana Comprehensive Curriculum, Revised 2008 Unit 8, General Assessments, Calculation Test with Answers

1. a. $18,000 b. $72,000 c. $2,700 2. a. $17,500 b. $1,400 c. 2% 3. a. $10,325 b. 4.3% 4. $1,506 5. $1,686.40 6. $1,872.50 7. $9,936 8. $4,800 9. $10,720 10. $16,078 11. $8,572 12. $9,800 13. $1,298.88 14. $907.44 15. a. $199.32 b. $1,699.32

Blackline Masters, Financial Math Page 226 Louisiana Comprehensive Curriculum, Revised 2008 Unit 8, General Assessments, Writing Test

Respond to each statement as fully and completely as you can.

1. “I don’t need to shop around for a mortgage lender; I’ll never live in that house 30 years

anyway.”

2. “Why won’t the bank let me buy that $300,000 house? I could cut back in other places, if they

would only lend me the money.”

3. “I’ll buy the least amount of insurance I can. Nothing’s ever gonna happen anyway.”

4. “My parents have always rented; it’s good enough for me.”

Blackline Masters, Financial Math Page 227 Louisiana Comprehensive Curriculum, Revised 2008 Unit 8, General Assessments, Writing Test with Answers

Possible answers: Student answers will vary and should include concrete examples from this unit and possibly reference to knowledge gained in previous units.

1. Even though you may not plan to be in a house for the duration of the mortgage, money is still saved each month if you shop for and receive the best mortgage loan rate available to you.

2. The FHA has guidelines that total housing costs should not exceed 41% of your monthly net pay. Most people would not “cut back” on the lifestyle they are accustomed to leading for the length of time it takes to repay a mortgage loan.

3. Insurance is the assurance that all of the hard work that has gone into home ownership doesn’t go for naught. Insurance is also the umbrella that protects your financial plan from the unexpected “rainy day”. It provides shelter so you don’t loose assets already accumulated.

4. There are many advantages to home ownership: income tax benefits, a store of equity value, and a hedge against inflation among many more.

Blackline Masters, Financial Math Page 228 Louisiana Comprehensive Curriculum, Revised 2008 Unit 8, Specific Assessments, Activity 1, Graphing Calculator Solution

Directions: Use your prior knowledge of a graphing calculator to solve the following problem. You should use the Finance mode and TVM to calculate monthly payments and the future value of the college fund savings. Use the summation of interest to calculate the total interest paid on the home loan and total interest earned on the college fund savings.

Jack and Sarah are expecting their first child on August 1st. They have just bought a new house and will also move into the house on August 1st. The total amount of money financed is $135,000 for a period of 30 years at an interest rate of 6.9%. They want to start now saving for their child’s future by putting $200 per month in a college fund that will yield a return of 3.7% compounded monthly, and will be available on the child’s 18th birthday. A friend told them that the smartest thing they could do would be to add the $200 to their regular house payment and pay the mortgage off early. They could then use the house payment money to send their child to college and would save a lot of money. They were not sure if what the friend told them would be the best thing to do.

A) Calculate the monthly payments required for the mortgage repayment.

B) Calculate the total interest paid over 30 years.

C) Calculate the time it would take to pay off the mortgage if $200 was added to each month’s

payment.

D) Calculate the amount of interest saved.

E) Calculate the amount of money in the college account on the child’s 18th birthday.

F) Calculate the amount of interest earned.

G) State whether you believe they should open a separate college account for their child or

apply the $200 each month to the payment. Justify your answer based only on the financial

facts uncovered.

Blackline Masters, Financial Math Page 229 Louisiana Comprehensive Curriculum, Revised 2008 Unit 8, Specific Assessments, Activity 1, Graphing Calculator Solution with Answers

A. Calculate the monthly payments required for the mortgage repayment. Use the TVM to calculate monthly payments.

B. Calculate the total interest paid over 30 years. Use the Summation of the interest to calculate the total interest paid.

C. Calculate the time it would take to pay off the mortgage if $200 was added to each month’s payment. Use the TVM to calculate the number of payments with the extra $200 per month.

D. Calculate the amount of interest saved. Use the summation of interest to calculate the total interest paid.

Blackline Masters, Financial Math Page 230 Louisiana Comprehensive Curriculum, Revised 2008 Unit 8, Specific Assessments, Activity 1, Graphing Calculator Solution with Answers

E. Calculate the amount of money in the college account on the child’s 18th birthday. Use the TVM to calculate the future value if the $200 was deposited into the college account.

F. Calculate the amount of interest earned. Use the summation of interest to calculate the total interest earned.

G. State whether you believe they should open a separate college account for their child or apply the $200 each month to the payment. Justify your answer based only on the financial facts uncovered.

Clearly the $83,137.46 saved by paying an extra $200 per month on the mortgage exceeds the $18,061.16 earned on the college savings plan. The student should identify the savings and evaluate Jack and Sarah’s choices, including a decision.

Blackline Masters, Financial Math Page 231 Louisiana Comprehensive Curriculum, Revised 2008 Unit 8, Specific Assessments, Activity 2, Closing Cost

Closing Cost Expense Worksheet Loan Origination Fee 1% of the loan amount Discount "Points" 4 points (1 "Point" = 1% of the loan amount) Credit Report $55.00 Appraisal Fee $400 Underwriting $275 Processing $300 Plat Drawing Inspection $60.00 Parish Recording Fees $50.00 Flood Certification $20.00 Name and Assessment Searches $24.00 ARM Title Insurance Endorsement Fee $50.00 Mortgage Registration Tax $2.30 per $1,000 of the loan amount Closing Fee $250.00 Miscellaneous Fees $350.00 Prepaid Interim Interest 15 days (Loan amount x interest rate = annual interest, divided by 12 months = monthly interest) Homeowners Insurance Premium The annual premium is computed by multiplying the purchase (1st year due in full) price by $4.00 per one thousand Property Taxes Rate of assessment: 45% (1st year due in full) Tax rate: 47.537 mills

Use the above Closing Cost Expense Worksheet to calculate the closing cost for a home selling for $185,000 with an annual interest rate of 7.10%.

Blackline Masters, Financial Math Page 232 Louisiana Comprehensive Curriculum, Revised 2008 Unit 8, Specific Assessments, Activity 2, Closing Cost with Answers

Closing Cost Expense Worksheet Answers Loan Origination 1% of the loan amount $1,850 Fee Discount "Points" 4 points $7,400 (1 "Point" = 1% of the loan amount) Credit Report $55.00 $55.00 Appraisal Fee $400 $400.00 Underwriting $275 $275.00 Processing $300 $300.00 Plat Drawing $60.00 $60.00 Inspection Parish Recording $50.00 $50.00 Fees Flood Certification $20.00 $20.00 Name and Assessment $24.00 $24.00 Searches ARM Title Insurance $50.00 $50.00 Endorsement Fee Mortgage $2.30 per $1,000 of the loan amount $425.50 Registration Tax Closing Fee $250.00 $250.00 Misc. Fee's $350.00 $350.00 Prepaid Interim 15 days Interest (Loan amount x interest rate = annual interest, divided by 365 days = daily $539.79 interest) Homeowners The annual premium is computed by multiplying the Insurance Premium $740 purchase price by $4.00 per one thousand (1st year due in full) Property Taxes Rate of assessment: 45% st $3,957.46 (1 year due in full) Tax rate: 47.537 mills Total $16,746.75

Use the above Closing Cost Expense Worksheet to calculate the closing cost for a home selling for $185,000 with an annual interest rate of 7.10%.

Blackline Masters, Financial Math Page 233 Louisiana Comprehensive Curriculum, Revised 2008 Unit 8, Specific Assessments, Activity 6, Rental Rubric

Performance: Completing a Rental Agreement Capitalization and Information and CATEGORY/ Format 25% of grade Punctuation Knowledge Points 25% of grade 50% of grade 4 Thorough completion of Demonstrates correct usage Includes specific details of application including of end punctuation, credit history and job name, address, previous commas, and contact information addresses, references capitalization, including abbreviations

3 A substantial amount of Demonstrates a substantial Has minor information application is completed amount of knowledge of missing on details of credit including name, address, punctuation and history and job contact and at least one other capitalization (2-5 errors) information component

2 Partial or incomplete Moderately effective use of Provides partial evidence of application which shows punctuation and credit history and job only two components capitalization (6-10 errors) contact information

1 Incomplete or serious Minimally effective use of Major amount of misunderstanding of how capitalization and information missing and no to complete the application punctuation (11 or more history errors)

Rubric generated at: http://rubistar.4teachers.org/index.php

Blackline Masters, Financial Math Page 234 Louisiana Comprehensive Curriculum, Revised 2008 Unit 8, Specific Assessments, Activity 8, Internet Research Rubric

Completing Internet Research CATEGORY 4 Points 3 Points 2 Points 1 Point Locating Independently enters Independently Asks for assistance Despite repeated Internet website address enters website from teacher or assistance unable to Website correctly and address correctly peer and then able enter website efficiently locates after self- to enter website address OR doesn't website correcting for address or to use ask for assistance errors and locates browser from teacher or Navigating Independently able to Independently able Asks for assistance Despite repeated Website use mouse and to use mouse and from teacher or assistance unable to browser efficiently to browser to peer and then able navigate website or navigate the website navigate website to navigate the use browser OR after self- website or use does not ask for correcting for browser assistance from errors teacher or peer Locating Independently able to Independently able Asks for assistance Despite repeated Relevant locate information to locate from teacher or assistance unable to Information relevant to topic on information peer and then able locate relevant website relevant to topic on to locate relevant information on the website after self- information on the website OR does correcting for topic on website not ask for errors assistance from teacher or peer Selecting Independently able to Independently able Asks for assistance Despite repeated Important discern and select to discern and from teacher or assistance unable to Information important information select important peer and then able discern and select directly supportive of information to discern and important research topic directly supportive select important information directly of research topic information supportive of after self- directly supportive research topic OR correcting for of research topic does not ask for errors assistance from teacher or peers Documenting Independently able to Independently able Asks for assistance Despite repeated Information in neatly and accurately to neatly and from teacher or assistance, unable Notes/First document in accurately peer and then able to neatly and Draft notes/first draft the document in notes to neatly and accurately information in own the information accurately document in words from website from the website in document in notes/first draft the notes/first draft in notes/first draft the information from own words with information from the website in own not more than 5 the website in own words OR Blackline Masters, Financial Math Page 235 Louisiana Comprehensive Curriculum, Revised 2008 Unit 8, Specific Assessments, Activity 8, Internet Research Rubric

corrections during words with not plagiarizes from teacher review more than 10 website OR does corrections during not produce teacher review notes/first draft or product is illegible Completes Independently able to Independently able Asks for assistance Despite repeated Assignment complete assignment to complete from teacher or assistance is unable assignment after peer more then 5 to complete self-correcting or 2 times and then able assignment OR requests for to complete chooses not to assistance from assignment complete teacher assignment

Blackline Masters, Financial Math Page 236 Louisiana Comprehensive Curriculum, Revised 2008 Unit 9, Activity 1, Stock Portfolio

Task: 1. This activity will span the next two weeks. 2. Each student will begin with a hypothetical $50,000 to invest in common stocks listed on the New York Stock Exchange (NYSE). 3. You will be given two days to research companies listed on the NYSE and choose your stock investments. http://www.nyse.com/ 4. Each student must invest as close to possible all of his/her $50,000 on NYSE listed companies. 5. Students must invest in common stocks of 10 companies. 6. Complete the Portfolio Buy Sheet BLM on the day of your portfolio investment. 7. Each day complete the Company Sheet BLM table for each company you’ve invested in. You can check the closing price of your stocks at the above NYSE web address, the daily newspaper or the stock ticker that runs on CNBC™ in the evenings. 8. At the end of the two-week investment period, complete the Portfolio Tally Sheet BLM.

Blackline Masters, Financial Math Page 237 Louisiana Comprehensive Curriculum, Revised 2008 Unit 9, Activity 1, Portfolio Buy Sheet

Portfolio Buy Sheet Date: Name: Full name of Purchase price Number of Purchase Symbol corporation per share shares Price

Portfolio Total Purchase Price (Buy as close to $50,000 as possible.)

Blackline Masters, Financial Math Page 238 Louisiana Comprehensive Curriculum, Revised 2008 Unit 9, Activity 1, Company Sheet

Update each day for each company.

NYSE Investments - Company Sheet Company Symbol Purchase Price Shares Total Purchased Investment $ $

Day 1 Day 2 Day 1 close Day 2 close profit/loss profit/loss $ $ $ $

Day 3 close Day 3 Day 4 close Day 4 profit/loss profit/loss $ $ $ $

Total $ profit/loss

Blackline Masters, Financial Math Page 239 Louisiana Comprehensive Curriculum, Revised 2008 Unit 9, Activity 1, Portfolio Tally Sheet

NYSE Investments - Tally Sheet Shares Purchase Investment Company Final price Profit/Loss purchases price results

52-week Hi 52-week Lo

Symbol

Dividend

Yield Percentage

Price to Earnings Ratio Portfolio Total

Volume 100s

Blackline Masters, Financial Math Page 240 Louisiana Comprehensive Curriculum, Revised 2008 Unit 9, Activity 1, Portfolio Tally Sheet

Net Change

Blackline Masters, Financial Math Page 241 Louisiana Comprehensive Curriculum, Revised 2008 Unit 9, Activity 2, Newspaper Listings

Task: Bring the financial section of a newspaper to class.

Discussion Topic: How to read the stock market tables. Use the Newspaper Stock Listings BLM to take notes during the discussion.

Example newspaper page excerpt

52 Week Yld Vol Net Stock Sym Div PE Hi Lo Close Hi Lo % 100s Chg 49.95 24.40 EKodak EK 1.80 5.4 129 17348 33.79 33.32 33.55 -.19 88.68 55.12 Eaton ETN 1.76 2.1 39 3555 85.65 84.79 84.81 -1.09 47.88 28.50 Ecolab ECL - - 30 2069 44.21 43.77 44.21 +.44

Task: In your financial section, find the ten stocks you chose to track on your Portfolio Buy Sheet BLM from activity 1 and complete the table below.

52 Week Yld Vol Net Stock Sym Div PE Hi Lo Close Hi Lo % 100s Chg

Blackline Masters, Financial Math Page 242 Louisiana Comprehensive Curriculum, Revised 2008 Unit 9, Activity 3, Business Television Opinionnaire

What Are Your Opinions About Watching Business Television?

Directions: After each statement, write SA (strongly agree), A (agree), D (disagree), or SD (strongly disagree). Then in the space provided, briefly explain the reasons for your opinions.

1. I can gain valuable insight into the world around me by watching business programming on television. ______

Your reasons:

2. Business television is only for rich people.______

Your reasons:

3. Business television is boring stuff I won’t care about.______

Your reasons:

4. I can’t learn anything relevant to my life by watching business television.______

Your reasons:

5. In the future I may enjoy watching business television.______

Your reasons:

Day of week:______

Blackline Masters, Financial Math Page 243 Louisiana Comprehensive Curriculum, Revised 2008 Unit 9, Activity 3, Nightly Notes

Name:______Day of Week:______

Directions. Use this worksheet to record your notes from watching “Nightly Business Report.”

1. Date of episode:______

2. Summary of major topics covered with relevant points from each article.

3. Closing numbers for the Dow Jones Industrial Average ______

NASDAQ ______

S&P 500 ______

Light Sweet Crude ______

Brent North Sea Crude ______

4. List any topics that would directly affect your financial stability and how the affect would manifest itself.

Blackline Masters, Financial Math Page 244 Louisiana Comprehensive Curriculum, Revised 2008 Unit 9, Activity 5, Introduction to Mutual Funds

What They Are

A mutual fund is a company that pools money from many investors and invests the money in stocks, bonds, short-term money-market instruments, other securities or assets, or some combination of these investments. The combined holdings the mutual fund owns are known as its portfolio. Each share represents an investor's proportionate ownership of the fund's holdings and the income those holdings generate.

Some of the traditional, distinguishing characteristics of mutual funds include the following:

 Investors purchase mutual fund shares from the fund itself (or through a broker for the fund).  The price that investors pay for mutual fund shares is the fund's per share net asset value (NAV) plus any shareholder fees that the fund imposes at the time of purchase (such as sales loads).  Mutual fund shares are "redeemable," meaning investors can sell their shares back to the fund (or to a broker acting for the fund).  Mutual funds generally create and sell new shares to accommodate new investors. In other words, they sell their shares on a continuous basis, although some funds stop selling when, for example, they become too large.

Advantages and Disadvantages

Every investment has advantages and disadvantages. For some investors, mutual funds provide an attractive investment choice because they generally offer the following features:

 Professional Management — Professional money managers research, select, and monitor the performance of the securities, stocks/bonds/etc., the fund purchases.

 Diversification — Diversification is an investing strategy that can be neatly summed up as "Don't put all your eggs in one basket." Spreading your investments across a wide range of companies and industry sectors can help lower your risk if a company or sector fails. Some investors find it easier to achieve diversification through ownership of mutual funds rather than through ownership of individual stocks or bonds.

 Affordability — Some mutual funds accommodate investors who don't have a lot of money to invest by setting relatively low dollar amounts for initial purchases, subsequent monthly purchases, or both.

 Liquidity — Mutual fund investors can readily redeem their shares at the current NAV — plus any fees and charges assessed on redemption — at any time.

But mutual funds also have features that some investors might view as disadvantages, such as:

 Costs Despite Negative Returns — Investors must pay sales charges, annual fees, and other expenses, regardless of how the fund performs. And, depending on the timing of

their investment, investors may also have to pay taxes on any capital gains distribution they receive — even if the fund went on to perform poorly after they bought shares.  Lack of Control — Investors typically cannot ascertain the exact make-up of a fund's portfolio at any given time, nor can they directly influence which securities the fund manager buys and sells or the timing of those trades.  Price Uncertainty — With an individual stock, you can obtain real-time (or close to real- time) pricing information with relative ease by checking financial websites or by calling your broker. You can also monitor how a stock's price changes from hour to hour — or even second to second. By contrast, with a mutual fund, the price at which you purchase or redeem shares will typically depend on the fund's NAV, which the fund might not calculate until many hours after you've placed your order. In general, mutual funds must calculate their NAV at least once every business day, typically after the major U.S. exchanges close.

Different Types of Funds

When it comes to investing in mutual funds, investors have literally thousands of choices. Before you invest in any given fund, decide whether the investment strategy and risks of the fund are a good fit for you. The first step to successful investing is figuring out your financial goals and risk tolerance — either on your own or with the help of a financial professional. Once you know for what you're saving, when you'll need the money, and how much risk you can tolerate, you can more easily narrow your choices.

Most mutual funds fall into one of three main categories — money market funds, bond funds (also called "fixed income" funds), and stock funds (also called "equity" funds). Each type has different features and different risks and rewards. Generally, the higher the potential return, the higher the risk of loss.

Money Market Funds

Money market funds have relatively low risks compared to other mutual funds (and most other investments). By law, they can invest in only certain high-quality, short-term investments issued by the U.S. government, U.S. corporations, and state and local governments. Investor losses have been rare, but they are possible.

Money market funds pay dividends that generally reflect short-term interest rates, and historically the returns for money market funds have been lower than for either bond or stock funds. That's why "inflation risk" — the risk that inflation will outpace and erode investment returns over time — can be a potential concern for investors in money market funds.

Bond Funds

Bond funds generally have higher risks than money market funds, largely because they typically pursue strategies aimed at producing higher yields. Unlike money market funds,

the SEC's rules do not restrict bond funds to high-quality or short-term investments. Because there are many different types of bonds, bond funds can vary dramatically in their risks and rewards. Some of the risks associated with bond funds include:

Credit Risk — the possibility that companies or other issuers whose bonds are owned by the fund may fail to pay their debts (including the debt owed to holders of their bonds).

Interest Rate Risk — the risk that the market value of the bonds will go down when interest rates go up. Because of this, you can lose money in any bond fund.

Prepayment Risk — the chance that a bond will be paid off early. For example, a bond issuer may decide to pay off (or "retire") its debt. When this happens, the fund may not be able to reinvest the proceeds in an investment with as high a return or yield.

Stock Funds

Although a stock fund's value can rise and fall quickly (and dramatically) over the short term, historically stocks have performed better over the long term than other types of investments — including corporate bonds, government bonds, and treasury securities.

Overall "market risk" poses the greatest potential danger for investors in stocks funds. Stock prices can fluctuate for a broad range of reasons — such as the overall strength of the economy or demand for particular products or services.

Not all stock funds are the same. For example:

 Growth funds focus on stocks that may not pay a regular dividend but have the potential for large capital gains.

 Income funds invest in stocks that pay regular dividends.

 Index funds aim to achieve the same return as a particular market index, such as the S&P 500 Composite Stock Price Index, by investing in all — or perhaps a representative sample — of the companies included in an index.

 Sector funds may specialize in a particular industry segment, such as technology or consumer products stocks.

How to Buy and Sell Shares

You can purchase shares in some mutual funds by contacting the fund directly. Other mutual fund shares are sold mainly through brokers, banks, financial planners, or insurance agents. All mutual funds will redeem (buy back) your shares on any business day and must send you the payment within seven days.

The easiest way to determine the value of your shares is to call the fund's toll-free number or visit its website. The financial pages of major newspapers sometimes print the NAVs for various mutual funds. When you buy shares, you pay the current NAV per share plus any fee the fund assesses at the time of purchase, such as a purchase sales load or other type of purchase fee. When you sell your shares, the fund will pay you the NAV minus any fee the fund assesses at the time of redemption, such as a deferred (or back-end) sales load or redemption fee. A fund's NAV goes up or down daily as its holdings change in value.

How Funds Can Earn Money for You

You can earn money from your investment in three ways:

1. Dividend Payments — A fund may earn income in the form of dividends and interest on the securities in its portfolio. The fund then pays its shareholders nearly all of the income (minus disclosed expenses) it has earned in the form of dividends.

2. Capital Gains Distributions — The price of the securities a fund owns may increase. When a fund sells a security that has increased in price, the fund has a capital gain. At the end of the year, most funds distribute these capital gains (minus any capital losses) to investors.

3. Increased NAV — If the market value of a fund's portfolio increases after deduction of expenses and liabilities, then the value (NAV) of the fund and its shares increases. The higher NAV reflects the higher value of your investment.

With respect to dividend payments and capital gains distributions, funds usually will give you a choice: the fund can send you a check or other form of payment, or you can have your dividends or distributions reinvested in the fund to buy more shares (often without paying an additional sales load).

Degrees of Risk

All funds carry some level of risk. You may lose some or all of the money you invest — your principal — because the securities held by a fund go up and down in value. Dividend or interest payments may also fluctuate as market conditions change.

Before you invest, be sure to read a fund's prospectus and shareholder reports to learn about its investment strategy and the potential risks. Funds with higher rates of return may take risks that are beyond your comfort level and are inconsistent with your financial goals.

Fees and Expenses

As with any business, running a mutual fund involves costs — including shareholder transaction costs, investment advisory fees, and marketing and distribution expenses. Funds pass along these costs to investors by imposing fees and expenses. It is important that you understand these charges because they lower your returns. SEC rules require funds to disclose both shareholder

Blackline Masters, Financial Math Page 248 Louisiana Comprehensive Curriculum, Revised 2008 Unit 9, Activity 5, Introduction to Mutual Funds fees and operating expenses in a "fee table" near the front of a fund's prospectus. The list below will help you decode the fee table and understand the various fees a fund may impose:

 Sales Charge (Load) on Purchases — the amount you pay when you buy shares in a mutual fund. Also known as a "front-end load," this fee typically goes to the brokers that sell the fund's shares. Front-end loads reduce the amount of your investment.

 Purchase Fee — another type of fee that some funds charge their shareholders when they buy shares. Unlike a front-end sales load, a purchase fee is paid to the fund (not to a broker) and is typically imposed to defray some of the fund's costs associated with the purchase.

 Deferred Sales Charge (Load) — a fee you pay when you sell your shares. Also known as a "back-end load," this fee typically goes to the brokers that sell the fund's shares. The most common type of back-end sales load is the "contingent deferred sales load" (also known as a "CDSC" or "CDSL"). The amount of this type of load will depend on how long the investor holds his or her shares and typically decreases to zero if the investor holds his or her shares long enough.

 Redemption Fee — another type of fee that some funds charge their shareholders when they sell or redeem shares. Unlike a deferred sales load, a redemption fee is paid to the fund (not to a broker) and is typically used to defray fund costs associated with a shareholder's redemption.

 Management Fees — fees that are paid out of fund assets to the fund's investment adviser for investment portfolio management, any other management fees payable to the fund's investment adviser or its affiliates, and administrative fees payable to the investment adviser that are not included in the "Other Expenses" category.

 Distribution Fees ("12b-1" Fees) — fees paid by the fund out of fund assets to cover the costs of marketing and selling fund shares and sometimes to cover the costs of providing shareholder services. "Distribution fees" include fees to compensate brokers and others who sell fund shares and to pay for advertising, the printing and mailing of prospectuses to new investors, and the printing and mailing of sales literature. "Shareholder Service Fees" are fees paid to persons to respond to investor inquiries and provide investors with information about their investments.

 Other Expenses — expenses not included under "Management Fees" or "Distribution or Service (12b-1) Fees," such as any shareholder service expenses that are not already included in the 12b-1 fees, custodial expenses, legal and accounting expenses, transfer agent expenses, and other administrative expenses.

Be sure to review carefully the fee tables of any funds you're considering, including no-load funds. Even small differences in fees can translate into large differences in returns over time. For example, if you invested $10,000 in a fund that produced a 10% annual return before expenses

Blackline Masters, Financial Math Page 249 Louisiana Comprehensive Curriculum, Revised 2008 Unit 9, Activity 5, Introduction to Mutual Funds and had annual operating expenses of 1.5%, then after 20 years you would have roughly $49,725. But if the fund had expenses of only 0.5%, then you would end up with $60,858, an 18% difference.

A Word About "No-Load" Funds

Some funds call themselves "no-load." As the name implies, this means that the fund does not charge any type of sales load. But, as discussed above, not every type of shareholder fee is a "sales load." A no-load fund may charge fees that are not sales loads, such as purchase fees, redemption fees, exchange fees, and account fees. No-load funds will also have operating expenses.

Source: U.S. Securities and Exchange Commission online publication “Invest Wisely: An Introduction to Mutual Funds,” located on the Internet at http://www.sec.gov/investor/pubs/inwsmf.htm

What Are They Predictions:

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Advantages and Disadvantages Predictions:

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Different Types of Funds

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How Funds Can Earn Money for You Predictions:

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Fees and Expenses

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Blackline Masters, Financial Math Page 255 Louisiana Comprehensive Curriculum, Revised 2008 Unit 9, Activity 7, Risk vs. Reward

Some forms of investing are inherently more risky than other forms. Some forms of investing have built-in protections to minimize risk. It is important that you know the risk and potential reward of investments prior to investing in them. Complete this task to deepen your understanding of the risk/reward relationship.

Task: 1. Research the investment risk/reward relationship. 2. Produce a poster-sized graphic of the risk/reward continuum for various investment types. At the bottom of the poster, list three ways to minimize investment risk over the long term. 3. Include topics such as: Diversification, Dollar-Cost Averaging, and Asset Allocation. 4. Look at the sample on the reverse side for guidance.

Blackline Masters, Financial Math Page 256 Louisiana Comprehensive Curriculum, Revised 2008 Unit 9, Activity 7, Risk vs. Reward

Risk/Rew ard Pyram id

Penny Stock

Commodities & H igher Risk Commodities DerivitivesDerivatives

H igher Potential Main Idea CollectiblesSpeculative Return Stock/Bonds/Mutual Funds Speculative Stocks/Bonds/Mutual Funds

Real Estate Blue Chip Common Stock & Mutual Funds Blue Chip CommonReal Stock Estate & Mutual Funds Growth Mutual Funds Low er Risk

High-GradeBalanced PreferredMutual FundsStock Low er Potential PreferHigh-Gradered Stock Convertible & Convertible Bonds Bonds Return Balanced & Index Mutual Funds

MoneyMoney Market Market Accounts & orMutual Mutual Funds Funds HighHigh-Grade-Grade Municipal Municipal & CorporateCorporat Bondse Bonds & Mutual or Mutual Funds Funds

Insured Savings/Checking Accounts Insured Checking AccountsU.S. Savings Bonds Certificates of Deposit U.S. Savings BondsCertificates of Treasury Deposit Issues (T-Bills) Treasury Issues ( T-Bills)

Methods to reduce risk: Insurance Diversification Dollar-Cost Averaging Asset Allocation

Blackline Masters, Financial Math Page 257 Louisiana Comprehensive Curriculum, Revised 2008 Unit 9, Activity 8, Life Insurance Terms

Task: Create a glossary of the life insurance terms below. The following web addresses may be helpful. http://www.iii.org/individuals/life/, http://www.ambest.com/resource/glossary.html#I

Term life Definition:

Characteristics:

Examples/Relationship:

Whole life Definition:

Characteristics:

Universal life Definition:

Characteristics:

Variable life Definition:

Characteristics:

Adverse selection Definition:

Characteristics:

Beneficiary Definition:

Characteristics:

Cash value Definition:

Characteristics:

Contestability period Definition:

Characteristics:

Indemnify Definition:

Characteristics:

Medical Information Bureau Definition:

Characteristics:

Preferred Risk Definition:

Characteristics:

Rated Policy Definition:

Characteristics:

Second-To-Die Policy Definition:

Characteristics:

Single premium life Definition:

Characteristics:

Blackline Masters, Financial Math Page 261 Louisiana Comprehensive Curriculum, Revised 2008 Unit 9, Activity 9, Health Insurance: Understanding What It Covers

What are "covered services"? Your health insurance policy is an agreement between you and your insurance company. The policy lists a package of medical benefits such as tests, drugs and treatment services. The insurance company agrees to cover the cost of certain benefits listed in your policy. These are called "covered services." Your policy also lists the kinds of services that are not covered by your insurance company. You have to pay for any uncovered medical care that you receive.

What is a medical necessity? Is that different from a covered service? Keep in mind that a medical necessity is not the same as a medical benefit. A medical necessity is something that your doctor has decided is necessary. A medical benefit is something that your insurance plan has agreed to cover. In some cases, your doctor might decide that you need medical care that is not covered by your insurance policy. Insurance companies determine what tests, drugs and services they will cover. These choices are based on their understanding of the kinds of medical care that most patients need. Your insurance company's choices may mean that the test, drug or service you need isn't covered by your policy.

What should I do? Your doctor will try to be familiar with your insurance coverage so he or she can provide you with covered care. However, there are so many different insurance plans, that it's not possible for your doctor to know the specific details of each plan. By understanding your insurance coverage, you can help your doctor recommend medical care that is covered in your plan. Take the time to read your insurance policy. It's better to know what your insurance company will pay for before you receive a service, get tested or fill a prescription. Some kinds of care may have to be approved by your insurance company before your doctor can provide them. If you still have questions about your coverage, call your insurance company and ask a representative to explain it. Remember that your insurance company, not your doctor, makes decisions about what will be paid for and what will not.

What happens if my doctor recommends care that isn't covered by my insurance? Most of the things your doctor recommends will be covered by your plan, but some may not. When you have a test or treatment that isn't covered, or you get a prescription filled for a drug that isn't covered, your insurance company won't pay the bill. This is often called "denying the claim." You can still obtain the treatment your doctor recommended, but you will have to pay for it yourself. If your insurance company denies your claim, you have the right to appeal (challenge) the decision. Before you decide to appeal, know your insurance company's appeal process. This should be discussed in your plan handbook. Also, ask your doctor for his or her opinion. If your doctor thinks it's right to make an appeal, he or she may be able to help you through the process.

To get more information on this subject, talk to your family doctor.

Blackline Masters, Financial Math Page 262 Louisiana Comprehensive Curriculum, Revised 2008 Unit 9, Activity 9, Health Insurance on Trial

Task: 1. This is a five-day activity.

Discussion Topic: The rising burden on society to provide quality healthcare to our growing masses.  Is healthcare too expensive?  Why are healthcare costs rising at a rate much higher than core inflation?  Who should be responsible for paying the rising costs of healthcare? o Society as a whole through higher taxes o Individuals through higher group insurance rates  What about those who can’t pay?  What about prescription medication? Who should pay? o Society as a whole (higher taxes) o Individuals (potentially greater, disproportionate individual burden)  What would cause healthcare rates to rise so high so fast? o Shortage of doctors o Shortage of medical facilities o Shortage of prescription medication  What role does medical technology play in rising costs?  Does a healthy, long life have a price? If so, what is it and who decides?

2. This is a group activity, I will assign groups. 3. Each group will research a healthcare topic based on similar points of view. 4. For example:  Social medicine, society pays for everyone’s healthcare costs  Private medicine, individuals pay for their own healthcare needs  Middle-Of-The-Road medicine, helps those that need help and those that can, pay

Mock Trial. HEALTHCARE: HOW DO WE FIX IT? Each working group will be a defensive team for the defense of the group’s point-of-view concerning healthcare. The groups should prepare a defense to present to a judge on day 5 of this activity.

Days 1 through 4. Each working group will have 4 days to research and plan for a defensive argument based on the group’s research and prevailing point of view. Prepare a thesis to phrase your group’s point-of-view and research to support the thesis. Be prepared to present your thesis, with research, supporting arguments, and visual aids at the trial.

Day 5. A judge will preside over our mock trial of the healthcare issue. Each group will present their researched argument to the judge with facts, conjecture and visual displays. While one group is presenting, the other groups can serve as the jury for the argument. The idle groups should take notes and respond to the judge as necessary.

Blackline Masters, Financial Math Page 263 Louisiana Comprehensive Curriculum, Revised 2008 Unit 9, General Assessments, Building Wealth Quiz

Name:______

Answer each question as completely as possible.

1. Explain dollar cost averaging and why it is important.

2. Why is it important to write down your financial goals?

3. Explain stock appreciation.

4. What are mutual funds?

5. Why are IRAs and 401(k)s important to retirement investment planning?

6. Explain the risk/reward continuum of investing.

7. How does life insurance fit into your financial plan?

Blackline Masters, Financial Math Page 264 Louisiana Comprehensive Curriculum, Revised 2008 Unit 9, General Assessments, Building Wealth Quiz with Answers

1. Explain dollar cost averaging and why it is important.

Dollar cost averaging is a technique designed to reduce market risk through the systematic purchase of securities at predetermined intervals and set amounts.

2. Why is it important to write down your financial goals?

Written goals allow you to track progress toward reaching your personal financial goals.

3. Explain stock appreciation.

An increase in the value of stock in a company.

4. What are mutual funds?

A mutual fund is a company that pools money from many investors and invests the money in stocks, bonds, short-term money-market instruments, other securities or assets, or some combination of these investments.

5. Why are IRAs and 401(k)s important to retirement investment planning?

Individual Retirement Account – lets you build wealth and retirement security; grows tax-free until you retire and withdraw it.

A retirement account at a place of employment; you contribute a percentage of before-tax salary, employers match a portion of every dollar you invest; tax-deferred.

6. Explain the risk/reward continuum of investing.

As a general rule, the greater the potential reward of an investment, the greater the risk and visa versa.

7. How does life insurance fit into your financial plan?

Early in a working lifecycle, life insurance is important to protect the future of dependants. As one nears retirement, life insurance becomes an integral part of inheritance estate planning.

Name:______

Background: Jonnie started working at Escape Travel Agency after finishing high school. Recently, Jonnie was promoted to office manager and she wants to begin an investment program. She earns $32,000 annually, isn’t married, and rents an apartment. She is going to night school in advertising and graduates in 2 ½ years with a bachelor’s degree. Jonnie went to the library at school to research investing and was soon overwhelmed by the information and the choices. Returning home in bewilderment, she calls you, her long-time friend, for advice.

Jonnie has a financial workbook that she needs help working through. Please help her work the problems and answer any questions she may have.

Situation 1. After they both retired, Ed and Samantha Falcon sold their house and land for $175,000 and rented an apartment. They invested almost all of the proceeds from the sale of their house in 170, $1000 par value, 7% bonds of Excomunico Limited. The bonds mature in 8 years. The market price of the bonds was 95 ½, with a .5% commission charge.

1. What is the total invested in these bonds?

2. Based on the bonds’ original purchase price, what rate of income could be earned on this bond investment? (to the nearest percent)

3. If interest is paid on these bonds semiannually, what is the amount of the semiannual interest payment?

4. If the Falcons hold the bonds until their maturity date, what total amount will they receive from Excomunico Limited when they redeem their bonds? (No commission will be charged at redemption.)

5. Would you advise Jonnie to invest in bonds? Why or why not?

Situation 2. Jacob deposits money from each paycheck into a savings account. When the account balance reaches $2000, he withdraws $2000 and invests in shares of the Happy Endings Growth Fund. Jacob has purchased mutual fund shares for the past five years at these prices:

Year Net Asset Value Offer # Shares Bought 1 7.27 7.65 261.438 2 7.73 8.14 245.700 3 8.35 8.79 227.531 4 8.74 9.20 217.391 5 9.20 9.68 206.612

6. What total number of Happy Endings Growth Fund shares does Jacob own?

7. What average price per share did Jacob pay for the shares he owns?

8. One year after making his last purchase, the Happy Endings Growth Fund has a NAV of $8.93 and an offer price of $9.40. If Jacob sells all the shares he owns, what are his net proceeds from the sale? What is his net profit from the ownership of Happy Endings Growth Fund shares?

9. If Jacob makes no additional fund purchases after the fifth year, at what price would he sell his shares to double his investment?

10. Jacob practices a more basic form of dollar-cost-averaging. Explain to Jonnie the benefits of dollar-cost-averaging.

Situation 3. Robert invests $5000 in each of two different stocks. He bought 200 shares of Snow Peak Outdoor Products at $25 per share, including commission. The Snow Peak stock pays a quarterly dividend of $0.37 ½ per share. He also bought 400 shares of Drownage Shipping Company stock at $12.50, including commission. Drownage Shipping paid no dividend for four years, and then in the fifth year it paid a quarterly dividend of $0.02 per share.

Robert kept both stocks for five years, and then sold them at these net prices, after commission: Snow Peak Outdoor Products, $28; Drownage Shipping, $18.

11. What total dividend did Robert receive from both stocks?

12. What profit or loss did Robert make on each sale?

13. What was the total gain or loss from ownership of these stocks?

14. Jonnie likes the idea of investing in stocks, but is unclear about how to manage risk. Please explain her options when it comes to managing risk.

15. Which of the above investment options would be best for Jonnie if she plans to save $2200 for a home down payment and $1000 for longer-term goals?

1. What is the total invested in these bonds? 170 * $955 * 1.005 = $163,161.75

2. Based on the bonds’ original purchase price, what rate of income could be earned on this bond investment? (to the nearest percent) ($1000 * .07) / $955 = 7.3%

3. If interest is paid on these bonds semiannually, what is the amount of the semiannual interest payment? $170,000 * .07 / 2 = $5,950

4. If the Falcons hold the bonds until their maturity date, what total amount will they receive from Excomunico Limited when they redeem their bonds? (No commission will be charged at redemption.) 170 * $1,000 = $ 170,000

5. Would you advise Jonnie to invest in bonds? Why or why not? Student answers with vary, but should include topics such as: Jonnie is too young to recommend investing in bonds, bonds are very safe, Jonnie doesn’t need current income.

6. What total number of Happy Endings Growth Fund shares does Jacob own? 261.438 + 245.700 + 227.531 + 217.391 + 206.612 = 1,158.672

7. What average price per share did Jacob pay for the shares he owns? $10,000 / 1,158.672 = $8.63

8. One year after making his last purchase, the Happy Endings Growth Fund has a NAV of $8.93 and an offer price of $9.40. If Jacob sells all the shares he owns, what are his net proceeds from the sale? What is his net profit from the ownership of Happy Endings Growth Fund shares?

1,158.672 * $8.93 = $10,346.94 Net proceeds from sell

$10,346.94 - $10,000 = $346.94 Net profit from sell

9. If Jacob makes no additional fund purchases after the fifth year, at what price would he sell his shares to double his investment? $8.63 * 2 = $17.26 N.A.V.

10. Jacob practices a more basic form of dollar-cost-averaging. Explain to Jonnie the benefits of dollar-cost-averaging. Student answers will vary, but should include: pay yourself first, buy more shares over time, when market is high you buy less shares, when market is low you buy more shares, reduces average share price over time.

11. What total dividend did Robert receive from both stocks? Snow Peak: 200 * $0.375 * 4 * 5 = $1,500

Drownage: 400 * $0.02 * 4 = $32

12. What profit or loss did Robert make on each sale? Snow Peak: ($28 - $25) * 200 = $600 Profit

Drownage: ($18 - $12.50) * 400 = $2,200 Profit

13. What was the total gain or loss from ownership of these stocks? Snow Peak: $1,500 + $600 = $2,100 Profit

Drownage: $32 + $2,200 = $2,232 Profit

14. Jonnie likes the idea of investing in stocks but is unclear about how to manage risk. Please explain her options when it comes to managing risk. Student answers will vary, but should include: making investments automatic, dollar cost averaging, stock mutual funds.

15. Which of the above investment options would be best for Jonnie if she plans to save $2200 for a home down payment and $1000 for longer-term goals? Student answers will vary. Invest for a home down payment, with a less than 5-year time horizon perhaps, save in balanced or less aggressive stock mutual funds. Cannot afford to lose the money, so keep it fairly safe. Invest for longer-term goals (investments can be more risky), perhaps in individual stocks or more aggressive stock mutual funds.

Blackline Masters, Financial Math Page 270 Louisiana Comprehensive Curriculum, Revised 2008 Unit 9, Specific Assessments, Activity 1, Calculator Tool

Using the information recorded on your Portfolio Buy Sheet BLM completed for Activity 1 and a graphing calculator, follow the steps outlined below to input your investments.

To the right is a chart of the example Stock Cost per Number of Total stock investments used in the calculator Name Share Shares Investment screenshots. A 14.23 450 6403.50 B 5.03 800 4024.00 C 14.76 700 10332.00 Keep a daily track of what your D 7.24 301 2179.24 investments are doing by calculating E 29.65 250 7412.50 the profit and loss for each of your F 21.56 300 6468.00 stocks from the Portfolio Buy Sheet G 47.12 125 5890.00 BLM over a ten day period. H 9.49 200 1898.00 I 11.07 300 3321.00 1) Enter the cost per share J 3.45 600 2070.00 of each stock in List 1. 2) Enter the corresponding number of shares bought in List 2, enter the values into the lists in the same order each time. 3) In List 3 arrow up and highlight L3 4) Enter L1 times L2 press ENTER

5) Clear the home screen 6) Press 2nd L1 press STO press 2nd LIST highlight OPS highlight B press ENTER 7) Press 2nd ALPHA press C press O press S press T press ENTER 8) Press 2nd L2 press STO press 2nd LIST highlight OPS highlight B press ENTER 9) Press 2nd ALPHA press S press H press A press R press E press ENTER 10) Press 2nd L3 press STO press 2nd LIST highlight OPS highlight B press ENTER 11) Press 2nd ALPHA press B press U press Y press ENTER

The initial cost per share is now stored in a list called COST, the number of shares purchased for each stock in a list called SHARE, and the total cost for each stock in a list Blackline Masters, Financial Math Page 271 Louisiana Comprehensive Curriculum, Revised 2008 Unit 9, Specific Assessments, Activity 1, Calculator Tool

called BUY. Do not use the Clear All List feature or it will clear the values saved in these special lists. Clear the lists by arrowing up and highlighting their names then pressing CLEAR and arrowing back down.

At the beginning of each class period, calculate your profit or loss for each stock and then calculate your total profit or loss on all the stocks. 12) Clear the home screen 13) Go to list 1 and arrow up to highlight L1 14) Press 2nd LIST highlight BUY press ENTER press ENTER 15) Go to list 2 use the up arrow to highlight L2 16) Press 2nd LIST highlight SHARE press ENTER press ENTER 17) Enter the closing price for the day of each stock in list 3. Remember they must be entered in the same order as the original stock. 18) Go to list 4 use the up arrow to highlight L4 19) Enter L2 times L3 press ENTER 20) Go to list 5 use the up arrow to highlight L5 21) Enter L4 minus L1 press ENTER

List 1: Initial Total Cost per Stock List 2: Shares Bought List 3: Current Value per Share List 4: Current Value List 5: Profit or Loss to Date

22) Save daily profit and loss statements by following the steps 6 and 7 for list 5 and naming it Daily. Show me your calculator with the value of Daily each day when you have completed this step.

23) Calculate the total profit or loss for all stocks at the end of the 10-day activity: 1) Clear the home screen 2) Press 2nd LIST highlight MATH highlight 5 press ENTER 3) Press 2nd L5 press ENTER 4) Show me your calculator with this value.

Blackline Masters, Financial Math Page 272 Louisiana Comprehensive Curriculum, Revised 2008 Unit 9, Specific Assessments, Activity 8, Definitions

Directions. Match each word with its definition by writing the letter of the correct definition in the box to the right of the word.

Answer A. The amount that the owner of a permanent life insurance policy is 1. Adverse entitled to receive if the policy does not remain in force until the insured’s selection death. B. A nonprofit organization established to provide information to insurers 2. Beneficiary about impairments that applicants have admitted to, or that other insurers have detected, in connection with previous applications for insurance. C. A type of life insurance or annuity contract that is purchased by the 3. Cash value payment of one lump sum. D. This is a substandard policy, which means the physical or moral 4. Contest- lifestyle of the insured is more susceptible to loss. It's the opposite of a ability period Preferred Risk. E. A form of life insurance that covers the insured person for a certain period of time, specified in the policy. It pays a benefit to a designated 5. Indemnify beneficiary only when the insured dies within that specified period, which can be one, five, 10 or even 20 years. Renewable, but premiums increase with age. 6. Medical F. A policy that combines protection against premature death with a Information savings account that can be invested in stocks, bonds, and money market Bureau mutual funds at the policyholder’s discretion. G. The tendency of those exposed to a higher risk to seek more insurance 7. Preferred coverage than those at a lower risk. Insurers react either by charging Risk higher premiums or not insuring at all. H. The person or legal entity the owner of an insurance policy names to 8. Rated Policy receive the policy benefit if the event insured against occurs. I. A flexible premium policy that combines protection against premature 9. Second-To- death with a type of savings that typically earns a money market rate of Die Policy interest. Death benefits can be changed during the life of the policy within limits. 10. Single J. This is a fancy word that means your beneficiaries are paid the death premium life benefit to compensate for loss. K. Permanent life insurance policy that insures two lives under one policy, 11. Term life usually a husband and wife. Only after both insured parties are deceased will the death benefit proceeds be paid. 12. Universal L. The time during which an insurer has the right to cancel or rescind an life insurance policy if the application contained a material misrepresentation. M. The oldest kind of cash value life insurance that combines protection 13. Variable life against premature death with a savings account. Premiums are fixed and guaranteed and remain level throughout the policy’s lifetime. N. This refers to a person whose lifestyle, health, occupation, personal 14. Whole life habits, hobbies, family history, etc., indicate the person should live a long time. Smokers and race car drivers are not this.

Blackline Masters, Financial Math Page 273 Louisiana Comprehensive Curriculum, Revised 2008 Unit 9, Specific Assessments, Activity 8, Definitions with Answers

Answer A. The amount that the owner of a permanent life insurance policy is 1. Adverse G entitled to receive if the policy does not remain in force until the insured’s selection death. B. A nonprofit organization established to provide information to insurers 2. Beneficiary H about impairments that applicants have admitted to, or that other insurers have detected, in connection with previous applications for insurance. C. A type of life insurance or annuity contract that is purchased by the 3. Cash value A payment of one lump sum. D. This is a substandard policy, which means the physical or moral 4. Contest- L lifestyle of the insured is more susceptible to loss. It's the opposite of a ability period Preferred Risk. E. A form of life insurance that covers the insured person for a certain period of time, specified in the policy. It pays a benefit to a designated 5. Indemnify J beneficiary only when the insured dies within that specified period, which can be one, five, 10 or even 20 years. Renewable, but premiums increase with age. 6. Medical F. A policy that combines protection against premature death with a Information B savings account that can be invested in stocks, bonds, and money market Bureau mutual funds at the policyholder’s discretion. G. The tendency of those exposed to a higher risk to seek more insurance 7. Preferred N coverage than those at a lower risk. Insurers react either by charging Risk higher premiums or not insuring at all. H. The person or legal entity the owner of an insurance policy names to 8. Rated Policy D receive the policy benefit if the event insured against occurs. I. A flexible premium policy that combines protection against premature 9. Second-To- death with a type of savings that typically earns a money market rate of K Die Policy interest. Death benefits can be changed during the life of the policy within limits. 10. Single J. This is a fancy word that means your beneficiaries are paid the death C premium life benefit to compensate for loss. K. Permanent life insurance policy that insures two lives under one policy, 11. Term life E usually a husband and wife. Only after both insured parties are deceased will the death benefit proceeds be paid. 12. Universal L. The time during which an insurer has the right to cancel or rescind an F life insurance policy if the application contained a material misrepresentation. M. The oldest kind of cash value life insurance that combines protection 13. Variable life I against premature death with a savings account. Premiums are fixed and guaranteed and remain level throughout the policy’s lifetime. N. This refers to a person whose lifestyle, health, occupation, personal 14. Whole life M habits, hobbies, family history, etc., indicate the person should live a long time. Smokers and race car drivers are not this.

Blackline Masters, Financial Math Page 274 Louisiana Comprehensive Curriculum, Revised 2008 Unit 9, Specific Assessments, Activity 9, Trial Rubric

Health Insurance Mock Trial Rubric 4 3 2 1 Points Research/Group Performance Gathers a great Gathers and Is generally on Little deal of selects track gathering information Gathering information sufficient information, gathered Information with clear information but information criteria in mind with criteria in is weak in mind some areas Information is Is able to Shows some Shows little organized in a organize skill in skill in Organizing logical and information approaching approaching Information thoughtful the problem in the problem manner. a logical logically manner Shows insight Draws Makes a Draws no in drawing conclusions concluding conclusions conclusions from the statement that and/or Using from information generalizes demonstrates Information information information little purpose for gathering data Clearly Uses some Shows little Exhibits no demonstrates divergent divergent creative or Thinking divergent thinking in thinking divergent thinking and is approach to the thinking insightful problem Almost always Usually listens Often listens Rarely listens listens to, to, shares, to, shares with, to, shares with, shares with, with, and and supports or supports the and supports supports the the efforts of efforts of Working with the efforts of efforts of others, but others; often is Others others; tries to others; does sometimes is not a good keep people not cause not a good team player. working well "waves" in the team member together group Focus on the Consistently Focuses on the Focuses on the Rarely focuses Task stays focused task and what task and what on the task and on the task and needs to be needs to be what needs to what needs to done most of done some of be done; lets be done; very the time; other the time; other others do the self-directed group members group members work can count on must this person. sometimes nag,

prod, and remind to keep this person on- task Trial Preparation Statements Statements Statements Statements are fully are adequately show are not developed, developed, a lack of developed, completely fairly preparation. and Statements consistent with consistent, and presentation research, accurately shows little or and accurately portrayed. no portrayed. preparation.

Questions Questions Questions Questions are relevant, are clear, lack logic. are irrelevant logical, logical, Most or and clear. and relevant. questions are unclear. Questions Most of poorly Questions are properly the time; most formed. formed questions are and delivered. properly formed.

Statements and Statements and Statements and Statements and questions show questions show questions show questions are sophisticated an some inconsistent understanding understanding understanding with of of of how evidence Depth of how evidence how evidence evidence supporting Understanding relates to and supports or supports or or opposing supports or opposes opposes the opposes the claim. the claim. claim. the claim.

Trial Behavior Voice Easily Understood Understood, Not understood and most of but easily consistently the time and uses an understood uses an uses inappropriate appropriate an appropriate rate, rate, rate, volume, or volume, and volume, and intonation that intonation intonation most distracts from of what

the time. is being said.

Excellent use Adequate body Lacks Unconvincing; of body and and facial realism; body body and facial expression and facial facial expression; expressions do expressions Authenticity words not are not and gestures match actions used match.

Has Interactions Unsure Distracted, appropriate with other of how to demonstrates interactions members of interact inappropriate Courtroom with the trial are with other behavior Decorum judge and appropriate members opposing most of the of the trial attorneys time.

Overall Effort Routinely Usually Sometimes Rarely provides useful provides useful provides useful provides ideas. A ideas. A strong ideas. A useful ideas. Contributions definite leader group member satisfactory May refuse to who who tries hard! group member participate. contributes a who does what lot of effort. is required. Work reflects Work reflects a Work reflects Work reflects this student's strong effort some effort very little Pride best efforts. from this from this effort on the student. student. part of this student.

Blackline Masters, Financial Math Page 277 Louisiana Comprehensive Curriculum, Revised 2008 Unit 10, Activity 2, Cash Flow Record

Task: Complete a personal spending record for two weeks.

Cash Flow Record Week 1 Week of: Name:

Income Expenses

Sunday

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

TOTALS: Income minus expenses:

The first step toward managing your money is to keep accurate records of how and where money is spent.

Blackline Masters, Financial Math Page 278 Louisiana Comprehensive Curriculum, Revised 2008 Unit 10, Activity 2, Cash Flow Record

Cash Flow Record Week 2 Week of: Name:

Income Expenses

Sunday

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

TOTALS: Income minus expenses:

Blackline Masters, Financial Math Page 279 Louisiana Comprehensive Curriculum, Revised 2008 Unit 10, Activity 3, Monthly Budget Sheet

Task: Use the Cash Flow Record BLM prepared for the first week of this unit to extrapolate dollar amounts to prepare a monthly budget sheet.

Monthly Budget Sheet Budget for: Month of:

Budgeted Amount Actual Amount Income: Work (net pay) $ $ Gifts/Allowance $ $ Other $ $ Total Income $ $ Fixed Expenses: Savings for goals $ $ Car Payment $ $ Auto Insurance $ $ Other $ $ Total Fixed Expenses Variable Expenses Food $ $ Gas $ $ Clothing $ $ Entertainment $ $ Special Occasions $ $ Other $ $ Total Variable Expenses $ $ Total Expenses $ $

Balance: $ $ (Income minus Expenses)

Blackline Masters, Financial Math Page 280 Louisiana Comprehensive Curriculum, Revised 2008 Unit 10, General Assessments, End-Of-Course Test

Name:______

Introduction: Tracy and Albert Rushworth now rent an apartment for $670 a month. While renting, they saved $17,000 to use for a down payment on a home and other expenses. The Rushworths have been looking at houses, and found one priced at $85,000 that meets their needs. Closing costs on the house would be $2,500. Before signing a contract to buy the home, the Rushworths went to several lenders for home mortgage information. They found three lenders in the area that offer mortgages at these terms:

Lender A requires a 20% down payment for a 14.25%, 20-year mortgage loan. For these terms, the monthly mortgage payment will be $857.97.

Lender B offers a 14.50%, 25-year mortgage loan with a minimum 16% down payment. At this rate, the monthly mortgage payment will be $886.91.

Lender C offers the longest mortgage term, 30 years. To get that term, the borrower must make a minimum down payment of 14% and pay a rate of 14.875%. At these terms, the monthly mortgage payment will be $917.01.

Because they will no longer live near their work, the Rushworths will have to buy a second car. They have shopped for a new car, and found one they like that sells for $12,600. With a minimum down payment required of 10%, the monthly payments would be $401.49 for a loan of three years and $324.30 for a four-year loan. It is possible to lease the car they want instead of buying. The monthly lease payments would be $289.50, with no money down.

The estimated annual expenses of operating the car they want are as follows: gasoline, 650 gallons at $3.05; insurance, $420; maintenance, $230; license fees, $45. At the time of purchase, only one-fourth of the annual insurance premium must be paid along with the license fee. If the car is purchased, the interest for the first year would be $1,638 on a three-year loan and $1,711 on a four-year loan. If the car is purchased, the depreciation expense the first year will be 22% of the purchase price and the interest lost on money invested in the car will be $101.

The Rushworths’ combined gross income is $45,000 a year. If they buy the house, they will have these expenses: property taxes, $2,090; insurance, $320; maintenance and repairs, $1,100; lost interest on the down payment at 8%; depreciation at a rate of 2% a year. The first-year mortgage interest they would pay varies among lenders as follows: Lender A, $9,649; Lender B, $10,333; Lender C, $10, 864.

By paying property taxes and mortgage interest, the Rushworths would have these tax benefits, depending on where they got their mortgage: Lender A, $3,290; Lender B, $3,480; Lender C, $3,630.

Complete the following tables to summarize the data that the Rushworths gathered.

1. Money Needed at Time of Home and Car Purchase (assuming minimum down payment is made) Lender A Lender B Lender C Home Down Payment

Closing Costs

Subtotal

Car Down Payment Car Insurance (¼th of annual premium) License Fee

Total Amount Needed

2. Cost of Owning Home for First Year Lender A Lender B Lender C Property Taxes

Insurance Maintenance & Repairs Lost Interest

Depreciation

Mortgage Interest

Total Gross Cost

Less Tax Savings

Net Cost of Owning

Total Interest Paid Over Term of Original Mortgage Loan (to nearest dollar) Lender A Lender B Lender C Amount

4. Car Operating Cost Gasoline

Insurance

Maintenance

License Fees

Total Operating Costs

5. Cost of Leasing and Operating Car for First Year Annual Lease Cost

Total Operating Cost

Total Cost

6. Cost of Owning and Operating Car for First Year Three-year Loan Four-year Loan Operating Costs

Depreciation

Interest Paid

Interest Lost

Total Cost

7. Total Annual Payment for Mortgage and Car Loan Total Annual Mortgage Total Annual Mortgage Payment Plus Annual Payment Plus Annual Mortgage Obtained From: Payment on a 3-year Car Payment on a 4-year Car Loan Loan Lender A

Lender B

Lender C

Complete the Decision Table below by writing a “yes” or “no” answer using the data from the tables you completed or other facts provided. Then, answer the questions that follow.

8. Decision Table: Do the Rushworths have enough money saved to buy a house and a car or buy a house and lease a car? Can they get a mortgage And buy a car? And lease a car? from… Lender A

Lender B

Lender C

9. In order to be approved for a mortgage loan by any lender, the purchase price of the house must be less than 2.5 times the buyer’s annual income. Do the Rushworths meet this requirement?

10. Compare the lowest cost of owning the home with the cost of renting. Which is less expensive, and by how much?

11. Compare the cost of buying and leasing a car. Which will be less expensive for the Rushworths during the first year?

12. For each lender, give the total amount of money that is needed if both the home and car are purchased. Lender A Lender B Lender C

13. From which lender(s) can the Rushworths get a mortgage loan and still afford to buy a car after making all the required down payments and not spending more than they saved?

14. Assume the Rushworths do not want to spend more than one-third of their annual gross income on mortgage and car payments. Using the decision table and other data, identify the combination(s) that will come closest to this goal of limiting spending. Explain your answer.

15. If you were making this home and car buying decision for the Rushworths, describe what you would do and why.

Blackline Masters, Financial Math Page 285 Louisiana Comprehensive Curriculum, Revised 2008 Unit 10, General Assessments, End-Of-Course Test with Answers

Complete the following tables to summarize the data that the Rushworths gathered.

1. Money Needed at Time of Home and Car Purchase (assuming minimum down payment is made) Lender A Lender B Lender C Home Down Payment $17,000 $13,600 $11,900

Closing Costs $2,500 $2,500 $2,500

Subtotal $19,500 $16,100 $14,400

Car Down Payment $1,260 $1,260 $1,260

Car Insurance $105 $105 $105 (¼th of annual premium) License Fee $45 $45 $45

Total Amount Needed $20,910 $17,510 $15,810

2. Cost of Owning Home for First Year Lender A Lender B Lender C Property Taxes $2,090 $2,090 $2,090

Insurance $320 $320 $320 Maintenance & $1,100 $1,100 $1,100 Repairs Lost Interest $1,360 $1,088 $952

Depreciation $1,700 $1,700 $1,700

Mortgage Interest $9,649 $10,333 $10,864

Total Gross Cost $16,219 $16,631 $17,026

Less Tax Savings $3,290 $3,480 $3,630

Net Cost of Owning $12,929 $13,151 $13,396

Total Interest Paid Over Term of Original Mortgage Loan (to nearest dollar) Lender A Lender B Lender C Amount $137,913 $194,673 $257,024

4. Car Operating Cost Gasoline $1,982.50

Insurance $420

Maintenance $230

License Fees $45

Total Operating Costs $2677.50

5. Cost of Leasing and Operating Car for First Year Annual Lease Cost $3,474

Total Operating Cost $2,677.50

Total Cost $6,151.50

6. Cost of Owning and Operating Car for First Year Three-year Loan Four-year Loan Operating Costs $2,677.50 $2,677.50

Depreciation $2,772 $2,772

Interest Paid $1,638 $1,711

Interest Lost $101 $101

Total Cost $7,188.50 $7,261.50

7. Total Annual Payment for Mortgage and Car Loan Total Annual Mortgage Total Annual Mortgage Payment Plus Annual Payment Plus Annual Mortgage Obtained From: Payment on a 3-year Car Payment on a 4-year Car Loan Loan Lender A $15,113.52 $14,187.24

Lender B $15,460.80 $14,534.52

Lender C $15,822 $14,895.72

Complete the Decision Table below by writing a “yes” or “no” answer using the data from the tables you completed or other facts provided. Then, answer the questions that follow.

8. Decision Table: Do the Rushworths have enough money saved to buy a house and a car or buy a house and lease a car? Can they get a mortgage And buy a car? And lease a car? from… Lender A No No

Lender B No Yes

Lender C Yes Yes

9. In order to be approved for a mortgage loan by any lender, the purchase price of the house must be less than 2.5 times the buyer’s annual income. Do the Rushworths meet this requirement? Yes

10. Compare the lowest cost of owning the home with the cost of renting. Which is less expensive, and by how much? Renting is lower by $5,729.40

11. Compare the cost of buying and leasing a car. Which will be less expensive for the Rushworths during the first year? Leasing is lower by $1,677.60

12. For each lender, give the total amount of money that is needed if both the home and car are purchased. Lender A Lender B Lender C $20,910 $17,510 $15,810

13. From which lender(s) can the Rushworths get a mortgage loan and still afford to buy a car after making all the required down payments and not spending more than they saved? Lender C

14. Assume the Rushworths do not want to spend more than one-third of their annual gross income on mortgage and car payments. Using the decision table and other data, identify the combination(s) that will come closest to this goal of limiting spending. Explain your answer.

Answers will vary. Any lender with 4-year car loan. Any lender with leasing the car.

15. If you were making this home and car buying decision for the Rushworths, describe what you would do and why.

Answers will vary.

Cheapest is Lender B and leasing the car.

Blackline Masters, Financial Math Page 289 Louisiana Comprehensive Curriculum, Revised 2008 Unit 10, Specific Assessments, Activity 2, Cash Flow Rubric

Cash Flow Record Name: Teacher:

Criteria Points 4 3 2 1 Responses for Less than 1/2 of Assignment Missing no more Missing 3 to 5 each day and responses than 2 responses. responses. Completeness each category. completed. All items are Most items are Many items are Less than 1/2 of all Accuracy correct. correct. correct. items are correct. Shows complete Shows substantial Response shows Response shows a understanding of understanding of Demonstrated some complete lack of the financial and the financial and understanding of understanding for Knowledge mathematical mathematical the process. the process. process. process. Goes beyond the requirements of Meets the Does not meet the Requirements the activity, i.e. requirements of requirements of provides receipts the activity. the activity. for all expenses. Legible Marginally Writing is not Writing is not handwriting; easy legible Legibility legible in places. legible. to read. handwriting. Total Points

Teacher Comments:

Blackline Masters, Financial Math Page 290 Louisiana Comprehensive Curriculum, Revised 2008 Unit 10, Specific Assessments, Activity 4, Financial Plan Rubric

Binder Divided into Many sections required sections. missing. Dividers headed Headings not correctly and used correctly. decorated following Dividers not theme of section. decorated. Financial Goals All six required More than 3 items are present items missing or and complete. incomplete. Goals are realistic, Goals are not include measurable realistic. Do not terms, have a time include frame, include measurable action to be taken. terms, time Education timeline frame or action is complete and to be taken. reflects an Education uncommon depth of timeline is understanding. missing or incomplete. Reflects a lack of understanding of future goals. Earnings All six required More than 3 Potential items are present items missing or and complete. incomplete. Chosen career and Chosen career income is clearly and income are stated. Calculations not stated. Many correct. errors in calculations. Automobile All five required More than 3 items are present items missing or and complete. incomplete. Taken as a whole, Taken as a reflects an whole, reflects a uncommon depth of lack of understanding. understanding. Housing All nine required More than 5 items are present items missing or and complete. incomplete. Taken as a whole, Taken as a reflects an whole, reflects a uncommon depth of lack of understanding. understanding.

Blackline Masters, Financial Math Page 291 Louisiana Comprehensive Curriculum, Revised 2008 Unit 10, Specific Assessments, Activity 4, Financial Plan Rubric

Insurance All four required More than 2 items are present items missing or and complete. All incomplete. categories are Category covered: Life, Auto missing. & Health. Investments All 14 required More than 6 items are present items missing or and complete. incomplete. Work demonstrates Work superior knowledge demonstrates of topic. lack of knowledge of topic. Banking All four required More than 2 items are present items missing or and complete. All incomplete. Few calculations correct. calculations correct. Credit All six required More than 3 items are present items missing or and complete. Work incomplete. demonstrates Taken as a superior knowledge whole, reflects a of credit. lack of understanding of credit. Organization Neat, organized Unorganized and information. Easy to illegible. Not read and follow. easy to read or to Outstanding follow. document for future Understanding reference. of document’s future purpose not evident. Total Points Rubric adapted from a template found at: http://rubistar.4teachers.org/index.php

Blackline Masters, Financial Math Page 292 Louisiana Comprehensive Curriculum, Revised 2008