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Financial Math Blackline Masters Workbook (294 pgs)

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  • 1. Financial Mathematics
  • 2. Some of the math symbols in this document were made with Math Type ® software. Specific fonts must be installed on the user’s computer for the symbols to be read. It is best to use the pdf format of a document if a printed copy is needed. To copy and paste from the Word document, download and install the Math Type ® for Windows Font from http://www.dessci.com/en/dl/fonts/default.asp on each computer on which the document will be used.
  • 3. Unit 1, Activity 1, Pay Discussion Blackline Masters, Financial Math Page 1 Louisiana Comprehensive Curriculum, Revised 2008 ↓↓↓↓Questions↓↓↓↓ ↓↓↓↓Answers↓↓↓↓ 1. 2. 3. 4. 5.
  • 4. Unit 1, Activity 2, Money Voc Card Blackline Masters, Financial Math Page 2 Louisiana Comprehensive Curriculum, Revised 2008 Definition (in own words) Facts/Characteristics Examples Nonexamples Money
  • 5. Unit 1, Activity 2, Coincidence of Wants Voc Card Blackline Masters, Financial Math Page 3 Louisiana Comprehensive Curriculum, Revised 2008 Definition (in own words) Facts/Characteristics Examples Nonexamples Coincidence of Wants
  • 6. Unit 1, Activity 2, Division of Labor Voc Card Blackline Masters, Financial Math Page 4 Louisiana Comprehensive Curriculum, Revised 2008 Definition (in own words) Facts/Characteristics Examples Nonexamples Division Of Labor
  • 7. Unit 1, Activity 2, Money Voc Card with Answers Blackline Masters, Financial Math Page 5 Louisiana Comprehensive Curriculum, Revised 2008 Definition (in own words) It’s a way for people to do things to earn a living in which everyone does what he/she does best and enjoys most. This leads to people making or doing more than they would do if they had to make or do everything for themselves. Facts/Characteristics 1. Creates a higher standard of living for all of us. 2. By specializing in only one task, people become much better at that task and more productive. 3. Using specialized machinery and/or facilities, production is increased even more through efficiency. Examples 1. High school teacher teaching one subject. 2. Dairy farmers produce milk. 3. Auto companies produce vehicles. Nonexamples 1. The old one-room school where the teacher taught every subject. 2. A family farm that produces all the food and milk that the family consumes. 3. Can’t imagine trying to build my own car. Division Of Labor
  • 8. Unit 1, Activity 6, Over time Pay Procedure Blackline Masters, Financial Math Page 6 Louisiana Comprehensive Curriculum, Revised 2008 Part 1: In each box, write an hourly pay problem of your own creation. Three of the five problems should contain over time information and one should not. 1. 2. 3. 4. 5.
  • 9. Unit 1, Activity 6, Over time Pay Procedure Blackline Masters, Financial Math Page 7 Louisiana Comprehensive Curriculum, Revised 2008 Part 2: Work each of the problems from the table on the reverse side. Show all the steps and circle your answer for Total Pay. 1. 2. 3. 4. 5.
  • 10. Unit 1, Activity 7, Count Timecards Blackline Masters, Financial Math Page 8 Louisiana Comprehensive Curriculum, Revised 2008 Employee Timecard Date In Out In Out Total Total Hours: Employee Timecard Date In Out In Out Total Total Hours: Employee Timecard Date In Out In Out Total Total Hours:
  • 11. Unit 1, Activity 8, Needs vs. Wants Blackline Masters, Financial Math Page 9 Louisiana Comprehensive Curriculum, Revised 2008 ‘Cheshire Puss,' she began, rather timidly, as she did not at all know whether it would like the name: however, it only grinned a little wider. `Come, it's pleased so far,' thought Alice, and she went on. `Would you tell me, please, which way I ought to go from here?' `That depends a good deal on where you want to get to,' said the Cat. `I don't much care where--' said Alice. `Then it doesn't matter which way you go,' said the Cat. `--so long as I get somewhere,' Alice added as an explanation. `Oh, you're sure to do that,' said the Cat, `if you only walk long enough.' From Alice in Wonderland by Lewis Carroll Values: beliefs and practices in your life that are very important to you. Task: 1. Think of activities/items that you currently do/have or that you want to do/have and write them in the Activity/Item column of the table below. 2. Then, check the appropriate Need or Want column to describe the item/activity. Needs: essentials, the basics of life. Food, clothing and a place to live, etc. Wants: things that increase the quality of living. Music, eating out, movies, designer clothes, etc. Nothing wrong with wants and you should have the things you want, but most of us live on a limited budget and must prioritize our money. Activity/Item Need Want 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
  • 12. Unit 1, Activity 12, Financial Goals Blackline Masters, Financial Math Page 10 Louisiana Comprehensive Curriculum, Revised 2008 Values: beliefs and practices in your life that are very important to you. Examples: Earning good grades Being good in your chosen sport Being responsible with money Telling the truth Spending time with people you care about Values lead to goals… Goal: something you want or need, which you endeavor to acquire by taking certain steps. Writing goals: SMART: Specific, Measurable, Attainable, Realistic, Time-bound Example: To save $45 by the first of next month to take my girlfriend/boyfriend out for pizza and a movie. To save $10 a week for the next 25 weeks to buy clothes for a summer vacation. To save $2000 per year from summer jobs for the next four years for a down payment on a new car. Goal timelines: 1. Short-term: up to 3 months 2. Intermediate-term: 3 months to one year 3. Long-term: more than a year………..requires patience to achieve and a willingness to give up something you want now in return for something better later……….delayed gratification. Specific Goal Achievement date Timeline Estimated Cost $ amount to save per week Total total Task: 1. Construct and complete, on your own paper, the table above. 2. Place in binder in Section 1, Financial Goals.
  • 13. Unit 1, Activity 13, Interview Blackline Masters, Financial Math Page 11 Louisiana Comprehensive Curriculum, Revised 2008 Project: Interview Task: 1. Interview a person who earns money by graduated commission. Complete the information sheet below. 2. Prepare a two minute presentation for the class. Your presentation must include one visual aid, i.e., poster, video clip, picture, power point slide, banner, etc. Your name: Name of person interviewed: Employed by: Position in company: Time worked in current position: Work requirements of current job: Education requirements of current job: Experience requirements of current job: Current commission structure: Example of monthly earnings:
  • 14. Unit 1, Activity 13, Commission Earnings Data Blackline Masters, Financial Math Page 12 Louisiana Comprehensive Curriculum, Revised 2008 Graduated Commission Earnings Data Sheet Example monthly earnings (Taken from interview data sheets.) Time worked in current position (Taken from interview data sheets.) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20.
  • 15. Unit 1, Activity 13, Earnings Data Chart Blackline Masters, Financial Math Page 13 Louisiana Comprehensive Curriculum, Revised 2008 Task: 1. Use the data collected on the Commission Earnings Data BLM to plot each data point (years employed, monthly earnings). 2. Use the plot to determine if there is a correlation between years employed and monthly earnings. Describe the correlation found, if any.
  • 16. Unit 1, Activity 15, Career Expectations Opinionnaire Blackline Masters, Financial Math Page 14 Louisiana Comprehensive Curriculum, Revised 2008 Task: Think of the career you’d like to pursue after high school and relate your knowledge of that career by completing the following chart. Name: Career choice: Describe the daily duties/description of the career. What are the education requirements of the career? What is the pay of your career? Hourly/Monthly/Annually? Do you think that career will still be in demand in 20 years? Why or why not? Will you be required to participate in continuing education to maintain competency/certification in you career? What will your pay be in 20 years? Higher/Lower/The Same? Why?
  • 17. Unit 1, Activity 15, Career Exploration Blackline Masters, Financial Math Page 15 Louisiana Comprehensive Curriculum, Revised 2008 Task: Use the Internet, www.dol.gov , Occupational Outlook Handbook, to research your chosen career and complete the following: Name: Career choice: Job title: Job description: Education Requirements: Hourly/Annual Wages: Growth predictions for this career (detailed with supporting data & source): Future education/salary trends for this career (detailed with supporting data & source): Unit ________
  • 18. Unit 1, General Assessment, Observation Record Blackline Masters, Financial Math Page 16 Louisiana Comprehensive Curriculum, Revised 2008 Student Observation Record Observations Name: Notes Date Activity Date Activity Date Activity Date Activity Date Activity
  • 19. Unit 1, General Assessment, Observation Rubric Blackline Masters, Financial Math Page 17 Louisiana Comprehensive Curriculum, Revised 2008 Student Observation Rubric Attributes Above Standard At Standard Attribute Still A Goal Attribute Points Earned Points Possible (5-4.5) (4.0-3.5) (3.0-0) Materials Consistently brought required materials to class. Usually brought required materials to class. Inconsistently brought required materials to class. /5 Use of Class Time Made effective use of time; was always on task and actively involved in class discussions. Usually made effective use of time; was mostly on task and somewhat involved in class discussions. Came to class unprepared a majority of the time, not using time effectively or staying on task. /5 Collaboration Made successful efforts to collaborate with other students to master material. Readily sought teacher assistance when needed. Usually made successful efforts to collaborate with peers for content help. Sought teacher assistance only when prompted. Inconsistently made efforts to collaborate with peers for content help. Rarely sought teacher assistance when needed. /5 Team Work Consistently worked together as a well- coordinated team; divided large task into a number of smaller tasks; smaller tasks were assigned to team members; team members pulled their own share. Usually worked together as a well-coordinated team; usually divided large task into a number of smaller tasks; smaller tasks were usually assigned to team members; team members pulled their own share. Team did not work together or effectively split up tasks. Outside intervention was needed to help split up work; team members did not pull their own share. /5 Communication and Leadership Effective in assuming leadership roles without alienating peers. Consistently communicates and coordinates effectively with peers and teacher. Leadership evident, but lacking evident communication skills to consistently succeed with peers and teacher. Little or no leadership skills evident. Lacking successful communication skills to consistently succeed with peers and teacher /5 Observation Point Total /25
  • 20. Unit 1, General Assessment, Observation Rubric Blackline Masters, Financial Math Page 18 Louisiana Comprehensive Curriculum, Revised 2008 Name:_______________________________________________Date:_______________ Introduction: The Anderson Valve Company builds custom-made oil field equipment. Department 15 of the company builds pumps and has 7 workers. The 4 workers who make the pumps are paid on a piece rate basis. They work as a team and are paid based on the total number of pumps built by the work team; however, they are paid a different piece rate because of their differing skill-level and experience. The 3 hourly rate workers test the pumps, keep track of supplies, and deliver or ship the pumps to other departments or companies. They also work for other departments in the Anderson Valve Company. The Pay Code Chart shown on page 2 lists pay codes and rates. The 7 workers are paid the rate per hour worked or unit produced that corresponds to their pay code. For example, a worker with a “C” pay code earns $8.30 an hour. An Employee Timecard shows the hours worked last week by each hourly rate employee. A Daily Unit Production Chart shows the number of pumps produced each day by the work team. Notice that the work team builds different types of pumps during the week. Directions. Step One: 1. Complete the Employee Timecard for each employee chart by counting the hours worked each day and totaling the column. 2. Find the total number of pumps produced each day, by type and for the week. Write the sum of each row and column in it’s total cell. The right-most column and the bottom row should total to the same answer in the bottom, right cell. Employee Timecard for Zino, G. Date In Out In Out Total Mon 12:00 4:40 Tue 8:16 1:29 2:01 6:05 Wed 12:00 5:00 Th off off off off Fri off off off off Total Hours: Employee Timecard for Travis, M. Date In Out In Out Total Mon 7:00 11:00 12:00 4:40 Tue 7:15 11:30 12:15 5:00 Wed 11:00 5:44 Th 1:30 6:30 7:30 10:30 Fri 9:00 1:00 1:30 6:30 Total Hours:
  • 21. Unit 1, General Assessment, Test Blackline Masters, Financial Math Page 19 Louisiana Comprehensive Curriculum, Revised 2008 Employee Timecard for Espinoza, R. Date In Out In Out Total Mon 1:00 6:00 Tue 12:56 6:03 Wed 6:01 10:58 Th 3:00 5:58 Fri 9:00 1:00 1:30 4:30 Total Hours: Daily Unit Production Pump TypeDept. 15 X21 Z19 AA49 F56 Total Mon 1 0 7 14 Tue 3 1 7 5 Wed 0 3 7 9 Th 2 4 9 6 Fri 1 8 9 3 Total Anderson Valve Company Hourly Pay Code Chart Pay Code Employees hourly rate A $7.20 B $7.65 C $8.30 D $8.85 E $9.40 Anderson Valve Company Piece Rate Pay Code Chart Pay Code Rate per Unit XA $4.00 XB $4.80 XC $5.70 XD $6.50 XE $7.00 Step Two: 1. Complete the following Time/Job Report forms for each employee. 2. For each piece rate worker, write the total weekly production for the work team on the units produced line. 3. For each hourly rate worker, transfer the corresponding total hours from the employees’ timecard to the appropriate form. 4. Look up each employee’s pay code in the above Pay Code Charts and write the dollar amount shown on the pay rate line. 5. Calculate each employee’s weekly gross. Hourly employees are paid time-and-a-half for all hours worked beyond 40 hours per week. Anderson Valve Company Time/Job Report #PR Employee: Bergman, Lana Badge No: 6-115 Pay Code: XA Pay Rate: Units Produced: Weekly Gross: Anderson Valve Company Time/Job Report #PR Employee: Mosley, Tom Badge No: 6-102 Pay Code: XC Pay Rate: Units Produced: Weekly Gross:
  • 22. Unit 1, General Assessment, Test Blackline Masters, Financial Math Page 20 Louisiana Comprehensive Curriculum, Revised 2008 Anderson Valve Company Time/Job Report #HP Employee: Espinoza, Roberto Badge No: 6-120 Pay Code: A Pay Rate: Hours Worked: Weekly Gross: Anderson Valve Company Time/Job Report #HP Employee: Travis, Matt Badge No: 6-130 Pay Code: D Pay Rate: Hours Worked: Weekly Gross: Anderson Valve Company Time/Job Report #HP Employee: Zino, Grace Badge No: 6-122 Pay Code: C Pay Rate: Hours Worked: Weekly Gross: Step Three: 1. For each employee, enter the weekly gross amount from the Time/Job Report into the Earnings This Week column. 2. Find the New Year-to-Date amount for each employee by adding the amounts in the first two money columns of each row. Anderson Valve Company Time/Job Report #PR Employee: Carrela, Vito Badge No: 6-107 Pay Code: XB Pay Rate: Units Produced: Weekly Gross: Anderson Valve Company Time/Job Report #PR Employee: Coles, Mildred Badge No: 6-110 Pay Code: XE Pay Rate: Units Produced: Weekly Gross: Year-to-Date Earnings, Department 15 Employee Earnings Year-to-Date Earnings This Week New Year-to-Date Bergman, Lana $4,388.00
  • 23. Unit 1, General Assessment, Test Blackline Masters, Financial Math Page 21 Louisiana Comprehensive Curriculum, Revised 2008 Carrela, Vito $5,318.40 Coles, Mildred $7,756.00 Espinoza, Roberto $2,217.60 Mosley, Tom $5,985.00 Travis, Matt $3,894.00 Zino, Grace $1,917.30
  • 24. Unit 1, General Assessment, Test with Answers Blackline Masters, Financial Math Page 22 Louisiana Comprehensive Curriculum, Revised 2008 Employee Timecard for Espinoza, R. Date In Out In Out Total Mon 1:00 6:00 5 Tue 12:56 6:03 5 Wed 6:01 10:58 5 Th 3:00 5:58 3 Fri 9:00 1:00 1:30 4:30 7 Total Hours: 25 Employee Timecard for Travis, M. Date In Out In Out Total Mon 7:00 11:00 12:00 4:40 8 ¾ Tue 7:15 11:30 12:15 5:00 9 Wed 11:00 5:44 6 ¾ Th 1:30 6:30 7:30 10:30 8 Fri 9:00 1:00 1:30 6:30 9 Total Hours: 41 ½ Employee Timecard for Zino, G. Date In Out In Out Total Mon 12:00 4:40 4 ¾ Tue 8:16 1:29 2:01 6:05 9 ¼ Wed 12:00 5:00 5 Th off off off off Fri off off off off Total Hours: 19 Daily Unit Production Pump TypeDept. 15 X21 Z19 AA49 F56 Total Mon 1 0 7 14 22 Tue 3 1 7 5 16 Wed 0 3 7 9 19 Th 2 4 9 6 21 Fri 1 8 9 3 21 Total 7 16 39 37 99
  • 25. Unit 1, General Assessment, Test with Answers Blackline Masters, Financial Math Page 23 Louisiana Comprehensive Curriculum, Revised 2008 Time/Job Report #PR Employee: Bergman, Lana Badge No: 6-115 Pay Code: XA Pay Rate: $4.00 Units Produced: 99 Weekly Gross: $396 Time/Job Report #PR Employee: Mosley, Tom Badge No: 6-102 Pay Code: XC Pay Rate: $5.70 Units Produced: 99 Weekly Gross: $564.30 Time/Job Report #PR Employee: Coles, Mildred Badge No: 6-110 Pay Code: XE Pay Rate: $7.00 Units Produced: 99 Weekly Gross: $693 Time/Job Report #PR Employee: Carrela, Vito Badge No: 6-107 Pay Code: XB Pay Rate: $4.80 Units Produced: 99 Weekly Gross: $475.20
  • 26. Unit 1, General Assessment, Test with Answers Blackline Masters, Financial Math Page 24 Louisiana Comprehensive Curriculum, Revised 2008 Anderson Valve Company Time/Job Report #HP Employee: Espinoza, Roberto Badge No: 6-120 Pay Code: A Pay Rate: $7.20 Hours Worked: 25 Weekly Gross: $180 Anderson Valve Company Time/Job Report #HP Employee: Travis, Matt Badge No: 6-130 Pay Code: D Pay Rate: $8.85 Hours Worked: 41 ½ Weekly Gross: $373.92 Anderson Valve Company Time/Job Report #HP Employee: Zino, Grace Badge No: 6-122 Pay Code: C Pay Rate: $8.30 Hours Worked: 19 Weekly Gross: $157.70
  • 27. Unit 1, General Assessment, Test with Answers Blackline Masters, Financial Math Page 25 Louisiana Comprehensive Curriculum, Revised 2008 Year-to-Date Earnings, Department 15 Employee Earnings Year-to-Date Earnings This Week New Year-to-Date Bergman, Lana $4,388.00 $396.00 $4,784.00 Carrela, Vito $5,318.40 $475.20 $5,793.60 Coles, Mildred $7,756.00 $693.00 $8,449.00 Espinoza, Roberto $2,217.60 $180.00 $2397.60 Mosley, Tom $5,985.00 $564.30 $6,549.30 Travis, Matt $3,894.00 $373.92 $4,267.92 Zino, Grace $1,917.30 $157.70 $2,075.00
  • 28. Unit 1, Activity 2, The Story of Money Assessment Blackline Masters, Financial Math Page 26 Louisiana Comprehensive Curriculum, Revised 2008 Directions: Answer the following questions as completely and accurately as possible. Answers should be complete sentences. You may continue your answers on the back, if required. 1. Explain a coincidence of wants. 2. What is a division of labor and why is it important to our modern global economy? 3. Why does division of labor lead to a higher standard of living for our society? (2 reasons) 4. What properties must money have in order to serve as an effective medium of exchange? Explain each. (5 properties) 5. Explain intrinsic value. Why does our money lack it? 6. Would everyone be better off if we all had more money? Why or why not?
  • 29. Unit 1, Activity 2, The Story of Money Assessment with Answers Blackline Masters, Financial Math Page 27 Louisiana Comprehensive Curriculum, Revised 2008 1. Explain a coincidence of wants. A situation in which two people each want what the other wants to trade; a condition necessary for barter to occur. Properties of our money and it’s near-universal acceptance have lessened the importance of this concept in modern America. 2. What is a division of labor and why is it important to our modern global economy? An approach to production in which different workers specialize in different tasks to achieve savings. It is important to our modern global economy because we can all exchange goods and services freely, allowing each country, or region, to take advantage of their particular natural resources or cultural strong points. As a result we all enjoy the best of each other and the best the world has to offer. 3. Why does division of labor lead to a higher standard of living for our society? (2 reasons) First, by specializing in certain tasks, rather than trying to produce everything, people become more adept at those tasks and, therefore, more productive. Second, economies of scale develop, as the use of specialized machinery makes production even more efficient. With economies of scale, the per-unit cost of production goes down as you produce more. 4. What properties must money have in order to serve as an effective medium of exchange? Explain each. (5 properties) (1) Money must be acceptable to people who want to sell things. (2) Money must be divisible, as the dollar is divisible into half dollars, quarters, dimes, nickels, and pennies. (3) Money must be portable. It must be something that can be easily moved around in order to buy things. (4) Money must be fungible. One unit of money must be interchangeable for another. Any dollar, regardless if it is new and crisp, or old and worn, is worth the same amount. (5) Money must be relatively stable. In addition to serving as a medium of exchange, money also serves as a store of value. You can save money confident that its value is constant. 5. Explain intrinsic value. Why does our money lack it? Intrinsic value is the value of the materials something is made from. For example, an automobile is made from metal, plastics, rubber, copper and many other materials that all have value outside of being formed into a vehicle. Money, on the other hand, is made from inexpensive materials, costing roughly the same in a dollar bill as in a twenty dollar bill. 6. Would everyone be better off if we all had more money? Why or why not? No; when people have more money to spend and the volume of goods and services doesn’t increase as fast, sellers find that they can raise prices and sell as much as they did before. Inflation is the result of too much money being spent in our economy.
  • 30. Unit 1, Activity12, Financial Goals Rubric Blackline Masters, Financial Math Page 28 Louisiana Comprehensive Curriculum, Revised 2008 Writing Financial Goals Scoring Rubric Teacher Name: Student Name: Category/ Score 4 3 2 1 Writing Process Student devotes a lot of time and effort to the writing process (prewriting, drafting, reviewing, and editing). Works hard to make the story wonderful. Student devotes sufficient time and effort to the writing process (prewriting, drafting, reviewing, and editing). Works and gets the job done. Student devotes some time and effort to the writing process but was not very thorough. Does enough to get by. Student devotes little time and effort to the writing process. Doesn't seem to care. Focus on Assigned Topic The goals are related to the assigned topic and allows the reader to understand much more about the future plans of the writer. Most of the goals are related to the assigned topic. The goals wander off at one point, but the reader can still learn something about the future plans of the writer. Some of the goals are related to the assigned topic, but a reader does not learn much about the future plans of the writer. No attempt has been made to relate the goals to the assigned topic. Organization The goals are very well-organized. One goal follows another in a logical sequence with clear transitions. The goals are pretty well organized. One goal may seem out of place. Clear transitions are used. The goals are a little hard to follow. The transitions are sometimes not clear. Goals seem to be randomly arranged. Requirements All of the written requirements for goal writing are met. Almost all (about 90%) of the written requirements for goal writing were met. Most (about 75%) of the written requirements for goal writing were met, but several were not. Many requirements for goal writing were not met. Total Score
  • 31. Unit 2, Activity 1, Check Stub Blackline Masters, Financial Math Page 29 Louisiana Comprehensive Curriculum, Revised 2008 Names: Task: 1. Circulate through the room and gather the information on the table from each check stub. 2. Calculate the percent of gross for each type of tax. (Tax / Gross Income) 3. Construct a graph for each type of tax using the blank graphs on the back of this form and the data you collected. Gross Income Federal Tax Withheld % of gross State Tax Withheld % of gross Social Security Tax Withheld % of gross Medicare Tax Withheld % of gross $453.12 $91.87 20.3% $32.77 7.2% $34.66 7.65% $6.57 1.45%
  • 32. Unit 2, Activity 1, Check Stub Graphing Blackline Masters, Financial Math Page 30 Louisiana Comprehensive Curriculum, Revised 2008 Federal Tax State Tax Medicare TaxSocial Security Tax
  • 33. Unit 2, Activity 2, 2007 Tax Rate Schedule Blackline Masters, Financial Math Page 31 Louisiana Comprehensive Curriculum, Revised 2008 2007 Tax Rate Schedules Schedule X — Single If taxable income is over-- But not over-- The tax is: $0 $7,825 10% of the amount over $0 $7,825 $31,850 $782.50 plus 15% of the amount over 7,825 $31,850 $77,100 $4,386.25 plus 25% of the amount over 31,850 $77,100 $160,850 $15,698.75 plus 28% of the amount over 77,100 $160,850 $349,700 $39,148.75 plus 33% of the amount over 160,850 $349,700 no limit $101,469.25 plus 35% of the amount over 349,700 Schedule Y-1 — Married Filing Jointly or Qualifying Widow(er) If taxable income is over-- But not over-- The tax is: $0 $15,650 10% of the amount over $0 $15,650 $63,700 $1,565.00 plus 15% of the amount over 15,650 $63,700 $128,500 $8,772.50 plus 25% of the amount over 63,700 $128,500 $195,850 $24,972.50 plus 28% of the amount over 128,500 $195,850 $349,700 $43,830.50 plus 33% of the amount over 195,850 $349,700 no limit $94,601.00 plus 35% of the amount over 349,700 Schedule Y-2 — Married Filing Separately If taxable income is over-- But not over-- The tax is: $0 $7,825 10% of the amount over $0 $7,825 $31,850 $782.50 plus 15% of the amount over 7,825 $31,850 $64,250 $4,386.25 plus 25% of the amount over 31,850 $64,250 $97,925 $12,486.25 plus 28% of the amount over 64,250 $97,925 $174,850 $21,915.25 plus 33% of the amount over 97,925 $174,850 no limit $47,300.50 plus 35% of the amount over 174,850 Schedule Z — Head of Household If taxable income is over-- But not over-- The tax is: $0 $11,200 10% of the amount over $0 $11,200 $42,650 $1,120.00 plus 15% of the amount over 11,200 $42,650 $110,100 $5,837.50 plus 25% of the amount over 42,650 $110,100 $178,350 $22,700.00 plus 28% of the amount over 110,100 $178,350 $349,700 $41,810.00 plus 33% of the amount over 178,350 $349,700 no limit $98,355.50 plus 35% of the amount over 349,700
  • 34. Unit 2, Activity 3, Louisiana Resident Individual Income Tax FAQs Blackline Masters, Financial Math Page 32 Louisiana Comprehensive Curriculum, Revised 2008 Who must file 1. Residents or part-year residents of Louisiana, or nonresidents with income from Louisiana sources who are required to file a federal income tax return must file a Louisiana Tax Return. 2. Taxpayers who have overpaid their tax through withholding or declaration of estimated tax must file a return to obtain a refund or credit. 3. Military personnel whose domicile (home of record) is Louisiana and who are required to file a federal income tax return must file a return and report all of their income regardless of where they were stationed. Credit against Louisiana tax may be taken for any net income tax paid to another state on nonmilitary income and income earned by the spouse, provided the income was included on the Louisiana return. Nonresident and individuals who were part-year residents must report their income from all sources for the period during which they were a resident, plus all income from Louisiana sources for the period they were a nonresident. Date tax due Returns and payments are due on the 15th day of the fifth month after the close of the taxpayer's fiscal year. For calendar-year filers, the tax is due on May 15. Determination of Tax The tax is determined using tax tables furnished by the Department of Revenue. The tables use federal adjusted gross income tax as a reference point. The tables are based on the following: 1. Rate of tax a. Single, married filing separately, or head of household: First $12,500 - 2 percent Next $12,500 - 4 percent Over $25,000 - 6 percent b. Married filing jointly or qualified surviving spouse: First $25,000 - 2 percent Next $25,000 - 4 percent Over $50,000 - 6 percent 2. Personal exemption - Standard deduction a. Single individual - $4,500 b. Married-joint return and a qualified surviving spouse - $9,000 c. Married-separate return - $4,500 d. Head of household - $9,000 3. Dependency deduction a. $1,000 for each dependent b. $1,000 for taxpayer and/or spouse who is over 65 years old c. $1,000 for taxpayer and/or spouse who is blind Source: Louisiana Department of Revenue http://www.revenue.louisiana.gov/sections/individual/indincome.aspx
  • 35. Unit 2, Activity 4, FICA Tax Rates Blackline Masters, Financial Math Page 33 Louisiana Comprehensive Curriculum, Revised 2008 Task: Research to Discover: 1. The current rates of Social Security and Medicare Tax. 2. The current income cap on Social Security Tax. 3. The purpose of the taxes and the benefit to the Federal Government. 4. The predictions for the future of these tax rates. 5. Prepare a PowerPoint presentation (7 slides) illustrating your findings to the class. a. The final product should include: i. Notecards taken during research. ii. Rough draft “storyboard” of what the final Power Point presentation will look like. iii. The Power Point presentation should follow the proper literary format, i.e. introduction, main body, and conclusion. iv. The final slide should be a bibliography. Due Date:_________________________________
  • 36. Unit 2, Activity 6, Health Insurance Research Blackline Masters, Financial Math Page 34 Louisiana Comprehensive Curriculum, Revised 2008 Task: This is a group task. Research group health insurance to answer the following questions. What is group health insurance? Why do I need health insurance? What types of health insurance are available? What are the specific attributes of each type? What are the advantages/disadvantages of each type? What is an annual premium? What is a co-pay? Give an example of the differing co-pays from different types of visits within a health insurance plan, i.e. doctor’s office visit co-pay? visit to the emergency room? What is a lifetime maximum allowance? What types of illnesses can be excluded from a policy? What if I become disabled? Are families covered? Am I covered if I travel abroad? Are there any time limitations to coverage? What else did I learn? When complete, create a PowerPoint® presentation illustrating your answers to the questions. Be prepared to present your findings to the class. Due Date:___________________________________________
  • 37. Unit 2, Activity 9, 5-Step Decision Making Process Blackline Masters, Financial Math Page 35 Louisiana Comprehensive Curriculum, Revised 2008 Discussion Topic: The 5-step decision making process. Task: 1. On the reverse side, write a song or poem explaining how the process can be used in your everyday world. Your audience is your peers. Be creative, you may include personal examples as part of your song or poem. 2. Include this worksheet in your financial plan, inside front pocket. 2. Gather & Analyze Information 5. Monitor & Modify the Plan as Required 1. Set Goals 3. Create A Plan of Action 4. Implement the Plan
  • 38. Unit 2, Activity 10, The Story of Inflation Blackline Masters, Financial Math Page 36 Louisiana Comprehensive Curriculum, Revised 2008 Read the comic & answer the following questions. 1. How do we define inflation? 2. What causes inflation? 3. What are the effects of inflation on individuals and the economy? 4. How do we measure inflation? 5. How is inflation prevented?
  • 39. Unit 2, Activity 10, The Story of Inflation with Answers Blackline Masters, Financial Math Page 37 Louisiana Comprehensive Curriculum, Revised 2008 1. How do we define inflation? A substantial and continuing rise in the general price level. 2. What causes inflation? a. Rising production costs cause an increase in prices.(Cost-Push Inflation) b. When people’s ability to spend rises more rapidly than the economy’s ability to produce goods and services.(Demand-Pull Inflation) 3. What are the effects of inflation on individuals and the economy? a. Not everyone’s income goes up as much as prices do. People whose incomes rise less than prices, or don’t rise at all, are hurt by inflation. b. Inflation reduces the value of people’s savings when price increases are larger than the interest rates that people receive on their savings accounts. c. Because inflation reduces the value of savings, it gives people an incentive to spend rather than save. By discouraging saving, inflation can harm the U.S. economy. That’s because the economy needs a supply of savings to provide the funds for people and businesses to borrow so that they can invest in the things that help the U.S. economy grow. d. Gives people an incentive to invest in ways that don’t help the economy grow, for example, buying gold and jewelry, investing money in overseas markets, or buying established real estate. e. It makes it more difficult for businesses to plan, thus they reduce, or delay, spending on capital improvement projects or expansion. 4. How do we measure inflation? The government has several measures of inflation. The best known is the Consumer Price Index(CPI), which measures the prices of items bought by consumers in metropolitan areas. Those items cover a wide range of goods and services, including food, clothing, housing, transportation, recreation, laundry services, and much more. To produce the CPI data, the U.S. Department of Labor keeps track of changes in a wide variety of consumer prices, and it actually sends Labor Department employees into many stores each month to check on price movements. 5. How is inflation prevented? The Federal Reserve’s actions to influence money and credit conditions in the economy, thus inflation, are known as monetary policy. The FED has three main monetary policy tools; reserve requirements, the discount rate, and open market operations. Lower reserve requirements enable banks to lend more of their deposits; higher reserve requirements shrink the availability of credit offered by banks. The discount rate is the interest rate that the FED charges on short-term loans to banks; when the FED lowers the discount rate, it may be indicating that it would like to see an increase in credit, when it raises the discount rate, it may be issuring a signal that it wants to “cool off the economy.” Open market operations consist of buying or selling U.S. Government securities(bonds) from firms known as primary dealers. When the FED buys government bonds, it pays for them by crediting the account that the primary dealer’s bank has at the FED, thus increasing the amount of money banks can lend. When the FED sells bonds, it receives the payment from the bank of the buyer, thus reducing the total amount of funds that banks can lend.
  • 40. Unit 2, Activity 10, Inflation Concept Map Blackline Masters, Financial Math Page 38 Louisiana Comprehensive Curriculum, Revised 2008 Task: 1. Complete the concept mapping chart below. 2. Write key concepts that either relate to inflation, or are affected by inflation, or are used to measure inflation. This chart may be modified to include as many bubbles as required. 3. Pay particular attention to the way the core inflation is measured. 4. Complete the concept map on the reverse side, to illustrate the CPI. . . . . . . . . Inflation
  • 41. Unit 2, Activity 10, Inflation Concept Map with Answers Blackline Masters, Financial Math Page 39 Louisiana Comprehensive Curriculum, Revised 2008 Gives people an incentive to save in ways that don’t help the economy. (Gold) Harmful to the U.S. economy. Economy needs people to save to provide banks money to lend. Reduces the value of people’s savings. Not everyone’s income rises as much as inflation. (fixed income) Demand-Pull Inflation: income rises faster than goods and services. Cost-Push Inflation: rising production costs. People have less money to spend. Prices go up on goods and services. Inflation
  • 42. Unit 2, Activity 10, CPI Concept Map Blackline Masters, Financial Math Page 40 Louisiana Comprehensive Curriculum, Revised 2008 . . . . . . . . CPI
  • 43. Unit 2, Activity 10, CPI Concept Map with Answers Blackline Masters, Financial Math Page 41 Louisiana Comprehensive Curriculum, Revised 2008 The federal income tax personal exemption increases each year based on CPI. Certain federal benefits, such as social security, are based on how much the CPI rises. Many economists think it overstates increases in the cost of living. Data collected by the U.S. Department of Labor. Food, clothing, housing, transportation, recreation, laundry services and much more. Many employers link wage increases to CPI. Measures the prices of items bought in metropolitan areas. Consumer Price Index. CPI
  • 44. Unit 2, Activity 11, Job Benefits Blackline Masters, Financial Math Page 42 Louisiana Comprehensive Curriculum, Revised 2008 Job Benefits. In addition to wages, many employers provide their workers other things of value called fringe benefits. For example, employers may provide free or low- cost health and accident insurance, life insurance, and a retirement plan. They may also provide paid holidays, paid sick leave, paid vacation time, the use of a car, a credit union, uniforms, parking, discounts for purchases of merchandise, recreational facilities, and education or training. Typically, fringe benefits are worth as much as 15% to 40% of the amount paid in wages. When you are considering a job offer, the value of the fringe benefits should be added to the amount of wages to find the total job benefits. Gross Pay + Fringe Benefits = Total Job Benefits The value of some fringe benefits, such as paid holidays, can be figured very accurately. However, the value of other fringe benefits, such as free recreation facilities, can only be estimated. If you were offered a benefit package that included use of a free gymnasium, how would you estimate its dollar value? Example: Sonia Burgoz is a systems analyst with Tri-State Paper Company. Last year Sonia calculated her total job benefits. Solution: Gross Pay: $32,400 Fringe Benefits: Paid Pension: $2,592 Health Insurance: $1,440 Paid vacations, holidays: $2,278 Paid course tuition: $925 Use of gymnasium(estimated): $360 Total Fringe Benefits: $7,595 Total Job Benefits $39,995 Job Expenses. Almost every job has expenses. Some examples of job expenses are union or professional dues, commuting expenses, uniforms, licenses, and tools. There may also be funds for birthdays and other events that you choose to contribute to. These expenses can add up. Total Job Benefits – Job Expenses = Net Job Benefits Example: Denelda Ogg had total job benefits of $27,329. Her job expenses were $624 for travel, $35 for a required license, $175 for professional dues, and $25 for the company birthday fund. Find her net job benefits. Solution: Total Job Benefits: $27,320 Job Expenses: Travel: $624 License: $35 Professional Dues: $175 Birthday Fund: $25 Total Job Expenses: $859 Net Job Benefits: $26,461
  • 45. Unit 2, Activity 11, Job Benefits Practice Problems Blackline Masters, Financial Math Page 43 Louisiana Comprehensive Curriculum, Revised 2008 1. Ray Novetney’s gross pay for a year is $18,512. He estimates his yearly fringe benefits to be worth these amounts: paid pension, $1,226; health and life insurance, $1,534; paid vacations and holidays, $1,993; use of company car, $2,936; free parking(estimated), $690. a. Find the total value of Ray’s fringe benefits for the year. b. Find his total job benefits for the year. 2. Jarvis Oertel has been offered a job that pays $12.45 an hour for a 40-hour week. He estimates that his weekly fringe benefits would be: pension, $30; health insurance, $15.65; parking, $14; uniforms, $5. Find Jarvis’: a. Weekly wages. b. Total weekly fringe benefits. c. Total job benefits per week. 3. Karin Hedberg is paid $8.72 an hour for a 40-hour week. Her estimated fringe benefits are 37% of her wages. Find her: a. Weekly wages. b. Annual wages. c. Total yearly fringe benefits. d. Total yearly job benefits. 4. Bob Dees is paid $1,128 per month. He estimates that his fringe benefits amount to 23% of his pay. Find his total job benefits for a year. 5. Kumar Godhwani estimates that his total job benefits are $17,220 per year. He estimates these yearly job expenses: uniforms, $276; transportation, $398; parking, $260; dues, $96; other, $74. Find his: a. Yearly job expenses. b. Yearly net job benefits. 6. Jay Orr’s job pays $1,374 a month. His estimated monthly fringe benefits are worth $384 and his monthly job expenses are: tools, $38; dues, $22; travel costs, $24; parking, $42. Find his monthly net job benefits. 7. Mary Farr earns $420 a week. Estimated fringe benefits are 35% of her wages. Estimated yearly job expenses are: licenses, $345; uniforms, $326; travel, $745; dues, $535. Find her: a. Annual wage. b. Annual fringe benefits. c. Total annual job benefits. d. Annual job expenses. e. Annual net job benefits. 8. Rita Falani has just graduated from school and is applying for two jobs. The first job pays $9.50 an hour for a 40-hour week, and the second job pays $11.05 an hour for a 40-hour week. The fringe benefits are estimated to be 25% of the annual wage for the first job and 22% for the second. Yearly job expenses are estimated to be $1,480 for the first job and $1,796 for the second. a. Which job has the greater net yearly job benefits? b. How much greater?
  • 46. Unit 2, Activity 11, Job Benefits Practice Problems with Answers Blackline Masters, Financial Math Page 44 Louisiana Comprehensive Curriculum, Revised 2008 Practice Problems 1. Ray Novetney’s gross pay for a year is $18,512. He estimates his yearly fringe benefits to be worth these amounts: paid pension, $1,226; health and life insurance, $1,534; paid vacations and holidays, $1,993; use of company car, $2,936; free parking(estimated), $690. a. Find the total value of Ray’s fringe benefits for the year. $8,379 b. Find his total job benefits for the year. $26,891 2. Jarvis Oertel has been offered a job that pays $12.45 an hour for a 40-hour week. He estimates that his weekly fringe benefits would be: pension, $30; health insurance, $15.65; parking, $14; uniforms, $5. Find Jarvis’: a. Weekly wages. $498 b. Total weekly fringe benefits. $64.65 c. Total job benefits per week. $562.65 3. Karin Hedberg is paid $8.72 an hour for a 40-hour week. Her estimated fringe benefits are 37% of her wages. Find her: a. Weekly wages. $348.80 b. Annual wages. $18,137.60 c. Total yearly fringe benefits. $6,710.91 d. Total yearly job benefits. $24,848.51 4. Bob Dees is paid $1,128 per month. He estimates that his fringe benefits amount to 23% of his pay. Find his total job benefits for a year. $16,649.28 5. Kumar Godhwani estimates that his total job benefits are $17,220 per year. He estimates these yearly job expenses: uniforms, $276; transportation, $398; parking, $260; dues, $96; other, $74. Find his: a. Yearly job expenses. $1,104 b. Yearly net job benefits. $16,116 6. Jay Orr’s job pays $1,374 a month. His estimated monthly fringe benefits are worth $384 and his monthly job expenses are: tools, $38; dues, $22; travel costs, $24; parking, $42. Find his monthly net job benefits. $1,632 7. Mary Farr earns $420 a week. Estimated fringe benefits are 35% of her wages. Estimated yearly job expenses are: licenses, $345; uniforms, $326; travel, $745; dues, $535. Find her: a. Annual wage. $21,840 b. Annual fringe benefits. $7,644 c. Total annual job benefits. $29,484 d. Annual job expenses. $1,951 e. Annual net job benefits. $27,533 8. Rita Falani has just graduated from school and is applying for two jobs. The first job pays $9.50 an hour for a 40-hour week, and the second job pays $11.05 an hour for a 40-hour week. The fringe benefits are estimated to be 25% of the annual wage for the first job and 22% for the second. Yearly job expenses are estimated to be $1,480 for the first job and $1,796 for the second. a. Which job has the greater net yearly job benefits? Second job b. How much greater? $3,024.48
  • 47. Unit 2, General Assessment, Test Blackline Masters, Financial Math Page 45 Louisiana Comprehensive Curriculum, Revised 2008 Name:_______________________________________________Date:_______________ 1. Complete the payroll table below. Calculate, for each married worker, (a) the Social Security Tax, (b) the Medicare Tax, (c) the Federal Income Tax (use the table in the back of your book.), (d) the State Income Tax(2.6% of taxable wages), (e) Total Deductions, and (f) Net Wages. Total each money column. Use the column totals to prove your work. The sum of the Social Security Tax, Medicare Tax, Federal Income Tax, State Income Tax, and Medical Insurance column totals should equal the total deductions column total. The total wages minus the total deductions should equal the total net wages. Deductions Name Allow- ances Total Wages Soc Sec Tax Medicare Tax Fed Tax State Tax Medical Insurance Total Net Wages a. Gibbs, F. 3 $358.33 $73.23 b. Hall, F. 0 $497.87 $39.45 c. Isom, G. 1 $391.89 $42.57 d. Jackson, H. 2 $617.71 $55.97 e. Kang, I. 2 $570.95 $62.59 f. Larson, A. 3 $332.07 $68.43 g. Rast, G. 0 $331.83 $29.91 h. Pavik, F. 4 $433.14 $73.23 i. O’Beron, D. 1 $335.74 $34.87 j. Mueller, B. 0 $431.59 $24.19 Total
  • 48. Unit 2, General Assessment, Test Blackline Masters, Financial Math Page 46 Louisiana Comprehensive Curriculum, Revised 2008 2. Elaine Kaufman works a 40-hour week at $8.75 an hour with time and a half for over time. Last week she worked 43 hours. From her earnings, her employer deducted Soc Sec Tax, Medicare Tax, Federal Income Tax of $38.00, and State Tax at a rate of 3.1%. Her employer pays 79% of the $3346 annual cost of health insurance, her portion is deducted weekly, and $27.12 was withheld for union dues. Complete Elaine’s payroll below. a. Straight-time earnings _________________ b. Over time earnings _________________ c. Gross income ____________________ Deductions d. Social Security Tax _________________ e. Medicare Tax _________________ f. Federal Income Tax _________________ g. State Tax _________________ h. Health Insurance _________________ i. Union dues _________________ j. Total deductions ____________________ k. Net Pay ____________________ 3. Edwin Nicol earns $6.83 an hour for a 40-hour week. He is paid time and a half for over time. His employer pays 83% of the $3841 annual cost of health insurance. Complete Edwin’s payroll below for a week in which he worked 47 hours. a. Straight-time earnings _________________ b. Over time earnings _________________ c. Gross income ____________________ Deductions d. Social Security Tax _________________ e. Medicare Tax _________________ f. Federal Income Tax _____$32.00______ g. State Tax(4.5%) _________________ h. Health Insurance _________________
  • 49. Unit 2, General Assessment, Test Blackline Masters, Financial Math Page 47 Louisiana Comprehensive Curriculum, Revised 2008 j. Total deductions ____________________ k. Net Pay ____________________ 4. Duane McCoy’s job pays him $11.25 per hour for a 40-hour week. He estimates his fringe benefits to be 29% of his yearly wages. His yearly job expenses are estimated to be: dues, $375; uniforms, $580; commuting costs, $934. a. What is Duane’s total annual pay? b. What is the amount of Duane’s fringe benefits per year? c. What are Duane’s total yearly job benefits? d. What are Duane’s total yearly job expenses? e. What are Duane’s net yearly job benefits? 5. Louella Hatton has a job which pays $1,986 a month. She estimates that her fringe benefits are 32% of her annual wages. She also estimates that her yearly job expenses are: special tools, $497; dues, $720; commuting costs, $602; uniforms, $530. a. What is Louella’s total annual pay? b. What is the amount of her annual fringe benefits? c. What are Louella’s total annual job benefits? d. What are Louella’s total annual job expenses? e. What are Louella’s net annual job benefits? 6. Doug Johnson’s paycheck stub is shown below. Doug believes the net pay is incorrect. Doug is married and claims 2 withholding allowances and his state tax rate is 3.1%. He has personal exemptions of $45.12. He makes 1 ½ times his regular hourly rate for all hours in excess of 40 each week. Calculate his gross pay, all withholdings and his net pay to determine if it is correct. If not correct, draw a line through the incorrect amount and write the correct amount above it. Write a paragraph addressing the mistakes made in the computation of his check stub. Gross Pay Tax Withholdings Personal Withholdings Net Pay Rate: $16.50/ hr Soc Sec $45.52 Union Dues $33.45 Hrs: 44.5 Medicare $10.65 Gym Mem. $12.00 Fed Tax $63.00 A.Savings $10.00 State Tax $22.76 401(k)contr. $18.36 $734.25 Total $141.93 Total $73.81 $518.51
  • 50. Unit 2, General Assessments, Test with Answers Blackline Masters, Financial Math Page 48 Louisiana Comprehensive Curriculum, Revised 2008 1. Complete the payroll table below. Calculate, for each married worker, (a) the Social Security Tax, (b) the Medicare Tax, (c) the Federal Income Tax (use the table in the back of your book.), (d) the State Income Tax(2.6% of the first $500, and 3.1% on all income over $500), (e) Total Deductions, and (f) Net Wages. Total each money column. Use the column totals to prove your work. The sum of the Social Security Tax, Medicare Tax, Federal Income Tax, State Income Tax, and Medical Insurance column totals should equal the total deductions column total. The total wages minus the total deductions should equal the total net wages. Deductions Name Allow- ances Total Wages Soc Sec Tax Medicare Tax Fed Tax State Tax Medical Insurance Total Net Wages a. Gibbs, F. 3 $358.33 $22.22 $5.20 $6 $9.32 $73.23 $115.97 $242.36 b. Hall, F. 0 $497.87 $30.87 $7.22 $44 $12.94 $39.45 $134.48 $363.39 c. Isom, G. 1 $391.89 $24.30 $5.68 $21 $10.19 $42.57 $103.74 $288.15 d. Jackson, H. 2 $617.71 $38.30 $8.96 $45 $16.65 $55.97 $164.88 $452.83 e. Kang, I. 2 $570.95 $35.40 $8.28 $39 $15.20 $62.59 $160.47 $410.48 f. Larson, A. 3 $332.07 $20.59 $4.82 $4 $8.63 $68.43 $106.47 $225.60 g. Rast, G. 0 $331.83 $20.57 $4.81 $21 $8.63 $29.91 $84.92 $246.91 h. Pavik, F. 4 $433.14 $26.85 $6.28 $8 $11.26 $73.23 $125.62 $307.52 i. O’Beron, D. 1 $335.74 $20.82 $4.87 $15 $8.73 $34.87 $84.29 $251.45 j. Mueller, B. 0 $431.59 $26.76 $6.26 $35 $11.22 $24.19 $103.43 $328.16 Total $4,301.12 $266.68 $62.38 $238 $112.77 $504.44 $1,184.27 $3,116.85
  • 51. Unit 2, General Assessments, Test with Answers Blackline Masters, Financial Math Page 49 Louisiana Comprehensive Curriculum, Revised 2008 2. Elaine Kaufman works a 40-hour week at $8.75 an hour with time and a half for over time. Last week she worked 43 hours. From her earnings, her employer deducted Soc Sec Tax, Medicare Tax, Federal Income Tax of $38.00, and State Tax at a rate of 3.1%. Her employer pays 79% of the $3346 annual cost of health insurance, her portion is deducted weekly, and $27.12 was withheld for union dues. Complete Elaine’s payroll below. a. Straight-time earnings __ $350.00_______ b. Over time earnings ____$39.39 ______ c. Gross income _____$389.39_________ Deductions d. Social Security Tax ____$24.14 ______ e. Medicare Tax _____$5.65 _______ f. Federal Income Tax ____$38.00 ______ g. State Tax ____$12.07 ______ h. Health Insurance ____$13.51 ______ i. Union dues ____$27.12 ______ j. Total deductions ______$120.49_________ k. Net Pay ______$268.90_________ 3. Edwin Nicol earns $6.83 an hour for a 40-hour week. He is paid time and a half for over time. His employer pays 83% of the $3841 annual cost of health insurance. Complete Edwin’s payroll below for a week in which he worked 47 hours. a. Straight-time earnings ____$273.20 ______ b. Over time earnings ____ $90.65 _______ c. Gross income ______$363.85_______ Deductions d. Social Security Tax ____$22.56 ______ e. Medicare Tax _____$5.28 _______ f. Federal Income Tax ____$32.00 ______ g. State Tax(4.5%) ____$16.37 ______ h. Health Insurance ____$12.56 ______ j. Total deductions _______$88.77 _______
  • 52. Unit 2, General Assessments, Test with Answers Blackline Masters, Financial Math Page 50 Louisiana Comprehensive Curriculum, Revised 2008 k. Net Pay _______$275.08 ______ 4. Duane McCoy’s job pays him $11.25 per hour for a 40-hour week. He estimates his fringe benefits to be 29% of his yearly wages. His yearly job expenses are estimated to be: dues, $375; uniforms, $580; commuting costs, $934. a. What is Duane’s total annual pay? $23,400 b. What is the amount of Duane’s fringe benefits per year? $6,786 c. What are Duane’s total yearly job benefits? $30,186 d. What are Duane’s total yearly job expenses? $1,889 e. What are Duane’s net yearly job benefits? $28,297 5. Louella Hatton has a job which pays $1,986 a month. She estimates that her fringe benefits are 32% of her annual wages. She also estimates that her yearly job expenses are: special tools, $497; dues, $720; commuting costs, $602; uniforms, $530. a. What is Louella’s total annual pay? $23,832 b. What is the amount of her annual fringe benefits? $7,626.24 c. What are Louella’s total annual job benefits? $31,458.24 d. What are Louella’s total annual job expenses? $2,349 e. What are Louella’s net annual job benefits? $29,109.24 6. Doug Johnson’s paycheck stub is shown below. Doug believes the net pay is incorrect. Doug is married and claims 2 withholding allowances and his state tax rate is 3.1%. He has personal exemptions of $45.12. He makes 1 ½ times his regular hourly rate for all hours in excess of 40 each week. Calculate his gross pay, all withholdings and his net pay to determine if it is correct. If not correct, draw a line through the incorrect amount and write the correct amount above it. Write a paragraph addressing the mistakes made in the computation of his check stub. Gross Pay Tax Withholdings Personal Withholdings Net Pay Rate: $16.50/ hr Soc Sec $47.83 Union Dues $33.45 Hrs: 44.5 Medicare $11.18 Gym Mem. $12.00 Fed Tax $69.00 A.Savings $10.00 State Tax $22.51 401(k)contr. $18.36 $771.38 Total $150.52 Total $73.81 $547.05 Gross pay didn’t include the over time rate. Soc Sec, Medicare, & Fed Tax were calculated using the wrong(given) gross pay. The state tax was calculated using the given gross pay and not subtracting the personal exemption.
  • 53. Unit 2, Activity 1, Specific Assessment, Group Product Rubric Blackline Masters, Financial Math Page 51 Louisiana Comprehensive Curriculum, Revised 2008 Cooperative Learning Project Rubric: Check Stub Analysis Names: _________________________________________________________________ Date: _______________ Class: ________________________________________ Exceptional (5-4.5) Admirable (4-3.5) Acceptable (3-2) Amateur (1.5-0) Points Group Organization and Data Gathering (Monitor students as they circulate between groups) Extremely well organized; logical data gathering format that was easy to follow; Smooth transition from data gathering to graphing. There were signs of organization and data gathering was easy to follow, but at times tasks were unclear. Somewhat confusing transition from data gathering to graphing. Somewhat unorganized; data gathered, but with difficulty. Required assistance to transition to graphing. Choppy and confusing organization; data was not gathered effectively. Seriously distracted during the transition to graphing. Calculation Accuracy Completely accurate; no errors Mostly accurate; a few errors Somewhat accurate; more than a few errors Completely inaccurate; many errors Graphing Proficiency Highly accurate graph. Points accurately graphed, axes labeled appropriately and scales appropriate for values graphed. Routinely accurate graph. Some inaccuracy in the graphing of points, axes labeled, but not accurately scaled. Some graphing inaccuracies. Substandard accuracy in graphing points, axes not labeled, and not accurately scaled. Inaccurate graph. Inaccurate graphing of points, axes not labeled. No scale provided. Findings Sheet of Correlations Clear understanding of scatter plots and correlations evident. Logical conclusions drawn. Routine correlations found. Lacked logical conclusion. Some correlations not found. Little evidence of mathematical thought in conclusion. No correlations found. Required teacher assistance to complete activity. Total Points The above rubric was generated at: http://school.discovery.com/schrockguide/assess.html
  • 54. Unit 2, Activity 2, Specific Assessment, Essay Rubric Blackline Masters, Financial Math Page 52 Louisiana Comprehensive Curriculum, Revised 2008 Name: ________________________ Date Submitted: ____________ Criteria 1 2 3 4 Points Organization Sequence of information is difficult to follow. Reader has difficulty following work because student jumps around. Student presents information in logical sequence which reader can follow. Information in logical, interesting sequence which reader can follow. ____ Mathematical Knowledge (Points in this section should be worth 4 times those of the other grading criteria) Student does not have grasp of mathematical content; no supporting data. Student has basic understanding of content; supporting data is inconclusive or incomplete. Student has grasp of mathematical content, but supporting data is lacking detail. Student demonstrates full knowledge of content; supporting data complete and accurate. ____ Grammar and Spelling Work has four or more spelling errors and/or grammatical errors. Presentation has three misspellings and/or grammatical errors. Presentation has no more than two misspellings and/or grammatical errors. Presentation has no misspellings or grammatical errors. ____ Neatness Work is Illegible. Work has three or four areas that are sloppy. Work has one or two areas that are sloppy. Work is neatly done. ____ References Work displays no references. Work does not have the appropriate number of required references. Reference section was completed incorrectly Work displays the correct number of references, written correctly. ____ Total----> ____ Teacher Comments: Powered by TeAch-nology.com- The Web Portal For Educators! (www.teach-nology.com)
  • 55. Unit 2, Activity 2, Specific Assessment, Essay Rubric Blackline Masters, Financial Math Page 53 Louisiana Comprehensive Curriculum, Revised 2008 This rubric may be used to assess the Power Point slides for this activity. Share the rubric with students at the time the assignment is made. A - Exemplary: 45-50 points B - Proficient: 40-44 points Partially Proficient or Incomplete: Needs to be resubmitted - less than 39 points PowerPoint Rubric ACTIVITY Exemplary Proficient Partially Proficient Incomplete POINTS Research and Note Taking 6 points Notecards indicate group members accurately researched varied information sources, recorded and interpreted statements, graphics and questions and evaluated alternative points of view. 4 points Notecards show group members recorded relevant information from multiple sources of information, evaluated and synthesized relevant information. 2 points Notecards show group members misinterpreted statements, graphics and questions and failed to identify relevant arguments. 0 points Notecards show group members recorded information from four or less resources, and ignored alternative points of view. Preproduction Plan - Storyboard 6 points The storyboard illustrates the slide presentation structure including: title of slide, text, background color, placement & size of graphic, fonts - color, size, type for text and headings, hyperlinks (list URLs of any site linked from the slide), narration text, and audio files (if any). All slides are numbered, and there is a logical sequence to the presentation. 4 points The storyboard includes titles and text for each slide and are in sequential order. 2 points The storyboard is not in a logical sequence and has incomplete information. 0 points The storyboard does not provide an overview of the presentation or is not present. Introduction (title slide) 3 points The introduction presents the overall topic and draws the audience into the presentation with compelling questions or by relating to the audience's interests or 2 points The introduction is clear and coherent and relates to the topic. 1 point The introduction shows some structure but does not create a strong sense of what is to follow. May be overly detailed or incomplete and is 0 points The introduction does not orient the audience to what will follow. The sequencing is
  • 56. Unit 2, Activity 2, Specific Assessment, Essay Rubric Blackline Masters, Financial Math Page 54 Louisiana Comprehensive Curriculum, Revised 2008 goals. somewhat appealing to the audience. unclear and does not appear interesting or relevant to the audience. Content (4 slides min, main body) 8 points The content is written clearly and concisely with a logical progression of ideas and supporting information. The project includes motivating questions and advanced organizers that provide the audience with sense of the project’s main idea. Information is accurate, current and comes mainly from * primary sources. 6 points The content is written with a logical progression of ideas and supporting information. Includes persuasive information from *primary sources. 4 points The content is vague in conveying a point of view and does not create a strong sense of purpose. Includes some persuasive information with few facts. Some of the information may not seem to fit. *Primary source use is not always clear. 0 points The content lacks a clear point of view and logical sequence of information. Includes little persuasive information and only one or two facts about the topic. Information is incomplete, out of date and/or incorrect. Sequencing of ideas is unclear. Text Elements 3 points The fonts are easy-to- read and point size varies appropriately for headings and text. Use of italics, bold, and indentations enhances readability. Text is appropriate in length for the target audience and to the point. The background and colors enhance the readability of text. 2 points Sometimes the fonts are easy-to- read, but in a few places the use of fonts, italics, bold, long paragraphs, color or busy background detracts and does not enhance readability. 1 point Overall readability is difficult with lengthy paragraphs, too many different fonts, dark or busy background, overuse of bold or lack of appropriate indentations of text. 0 points The text is extremely difficult to read with long blocks of text and small point size of fonts, inappropriate contrasting colors, poor use of headings, subheadings, indentations, or bold formatting. Layout 3 points The layout is aesthetically pleasing and contributes to the overall message with appropriate 2 points The layout uses horizontal and vertical white space 1 point The layout shows some structure, but appears cluttered and busy or distracting 0 points The layout is cluttered, confusing, and does not use spacing, headings
  • 57. Unit 2, Activity 2, Specific Assessment, Essay Rubric Blackline Masters, Financial Math Page 55 Louisiana Comprehensive Curriculum, Revised 2008 use of headings and subheadings and white space. appropriately. with large gaps of white space or uses a distracting background. and subheadings to enhance the readability. Citations 6 points Sources of information are properly cited so that the audience can determine the credibility and authority of the information presented. 4 points Most sources of information are documented to make it possible to check on the accuracy of information. 2 points Sometimes copyright guidelines are followed and some information, photos and graphics do not contain credible citations. 0 points No way to check validity of information. Graphics, Sound and/or Animation 3 points The graphics, sound and/or animation assist in presenting an overall theme and make visual connections that enhance understanding of concept, ideas and relationships. Original images are created using proper size and resolution, and all images enhance the content. There is a consistent visual theme. 2 points The graphics, sound/and or animation visually depict material and assist the audience in understanding the flow of information or content. Original images are used. Images are proper size, resolution. 1 point Some of the graphics, sounds, and/or animations seem unrelated to the topic/theme and do not enhance the overall concepts. Most images are clipart or recycled from the WWW. Images are too large/small in size. Images are poorly cropped or the color/resolution is fuzzy. 0 points The graphics, sounds, and/or animations are unrelated to the content. Graphics do not enhance understanding of the content, or are distracting decorations that create a busy feeling and detract from the content. Writing Mechanics 6 points The text is written with no errors in grammar, capitalization, punctuation, and spelling. 4 points The text is clearly written with little or no editing required for grammar, punctuation, and spelling. 2 points Spelling, punctuation, and grammar errors distract or impair readability. (3 or more errors) 0 points Errors in spelling, capitalization, punctuation, usage and grammar repeatedly distract the reader and major editing and
  • 58. Unit 2, Activity 2, Specific Assessment, Essay Rubric Blackline Masters, Financial Math Page 56 Louisiana Comprehensive Curriculum, Revised 2008 revision is required. (more than 5 errors) Teamwork 6 points The group documents how members brainstormed, discussed, assumed roles and solved problems. Provides evidence that group members helped one another, shared ideas, developed and evaluated their finished product(s). The project is clearly a group effort. 4 points The group documents how members divided tasks, shared the workload and managed problems in a way that advanced the group goal. 2 points The group occasionally helped one another but required teacher assistance to resolve differences. One person documents that he/she did most of the work and/or problems were not managed in a way that advanced the group goal. 0 points The group required teacher assistance with dividing tasks and resolving differences. Few people contributed their fair share of work. TOTAL POINTS /50 * Primary sources can include original letters and diaries, personal observations, interviews, first-hand accounts, newspaper articles, magazine articles, journal articles, Web pages, audio recordings, video productions and photography.
  • 59. Unit 3, Activity 1, Checking Account Application Form Blackline Masters, Financial Math Page 57 Louisiana Comprehensive Curriculum, Revised 2008 Trans-Louisiana School Bank Checking Account Application Form Customer Information (Please Print) First Name____________________MI____Last Name__________________________ Home Address_________________________________________ How long: ________ City_____________________________________State________Zip______________ Previous Address (if less than two years) _____________________________________ Social Security #___________________________Birthdate______________________ Work Phone (Area Code) - ________________Home Phone (Area Code) - __________ Employer________________________________ Employer Address____________________________________________ Top of Form Joint Account Owner First Name____________________MI____Last Name__________________________ Home Address_________________________________________ How long: ________ City_____________________________________State________Zip______________ Previous Address (if less than two years) _____________________________________ Social Security #___________________________Birthdate______________________ Work Phone (Area Code) - ________________Home Phone (Area Code) - __________ Employer________________________________ Employer Address____________________________________________ AUTHORIZED SIGNATURE(S) - Please Sign Below I/We have read a copy of the Universal Deposit Account Contract, Funds Availability Policy and Electronic Fund Transfers Disclosure Statement and Agreement, and agree to its terms and conditions. Primary Account Owner Signature _____________________________________ S B TL
  • 60. Unit 3, Activity 1, Checking Account Application Form Blackline Masters, Financial Math Page 58 Louisiana Comprehensive Curriculum, Revised 2008 Date___________ Joint Account Owner Signature _______________________________________ Date___________ Certification of Taxpayer Identification Number: Under penalties of perjury, I certify that (1) the number shown on this form is my correct taxpayer identification number and (2) (a) I am not subject to backup withholding for the reason checked below, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding, and (3) I am a U.S. person (including a U.S. resident alien). You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. Primary Account Owner__________________________________________Date___________ I am exempt from backup withholding because I am an: ___ Exempt Payee (Form W-9 will be sent to you.) ___ Non-Resident Alien (Form W-8 will be sent to you.) Bottom of Form PERSONAL IDENTIFICATION NUMBER (PIN) (For electronic access to your Checking Account) Please memorize your Personal Identification Number. This number will not be kept on record. ______ _____ _____ _____ Check Order Information (Please print the name and address information you would like to appear on your checks) __________________________________________________________________________ __________________________________________________________________________ __________________________________________________________________________ BANK USE ONLY Account #1:_______________________Account # 2:____________________________ Account #3:_______________________Account # 4:____________________________ ID#: ____________________ Exp.: _____ ID#: ___________________ Exp.: ______ Date Opened: _________ Social Security Issue Year: _______ State of Issue: ________
  • 61. Unit 3, Activity 1, Blank Checks Blackline Masters, Financial Math Page 59 Louisiana Comprehensive Curriculum, Revised 2008 Name No. __________ _______________20_____ Pay to The order of_______________________________________________ $ ___________ _________________________________________________________________Dollars Trans-Louisiana School Bank Memo__________________________ _________________________________ ######### ### #### #### ### Name No. __________ _______________20_____ Pay to The order of_______________________________________________ $ ___________ _________________________________________________________________Dollars Trans-Louisiana School Bank Memo__________________________ _________________________________ ######### ### #### #### ### Name No. __________ _______________20_____ Pay to The order of_______________________________________________ $ ___________ _________________________________________________________________Dollars Trans-Louisiana School Bank Memo__________________________ _________________________________ ######### ### #### #### ###
  • 62. Unit 3, Activity 1, Deposit Slips Blackline Masters, Financial Math Page 60 Louisiana Comprehensive Curriculum, Revised 2008 Dollars Cents Currency Coins List separately SUBTOTAL Less cash received Date: ___________________20_____ In the account of ______________________________ Trans-Louisiana School Bank Account # _______________________________ ______________________________________ (Sign for cash received) TOTAL DEPOSIT Dollars Cents Currency Coins List separately SUBTOTAL Less cash received Date: ___________________20_____ In the account of ______________________________ Trans-Louisiana School Bank Account # _______________________________ ______________________________________ (Sign for cash received) TOTAL DEPOSIT Dollars Cents Currency Coins List separately SUBTOTAL Less cash received Date: ___________________20_____ In the account of ______________________________ Trans-Louisiana School Bank Account # _______________________________ ______________________________________ (Sign for cash received) TOTAL DEPOSIT Dollars Cents Currency Coins List separately SUBTOTAL Less cash received Date: ___________________20_____ In the account of ______________________________ Trans-Louisiana School Bank Account # _______________________________ ______________________________________ (Sign for cash received) TOTAL DEPOSIT
  • 63. Unit 3, Activity 1, Check Register Blackline Masters, Financial Math Page 61 Louisiana Comprehensive Curriculum, Revised 2008 Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance
  • 64. Unit 3, Activity 1, Check Register Key Blackline Masters, Financial Math Page 62 Louisiana Comprehensive Curriculum, Revised 2008 Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 2/8 Open account, paycheck 368.67 368.67 101 2/9 Mahoney’s Meat Market 22.13 346.54 2/9 Atm withdrawal 40.00 306.54 2/9 Atm withdrawal 60.00 246.54 102 2/12 Ed’s Discount Store 17.31 229.23 2/13 Atm withdrawal 20.00 209.23 2/15 Debit – Joe’s Gas St. 11.86 197.37 103 2/16 Jan’s BBQ 8.99 188.38 2/17 Atm withdrawal 10.00 178.38 104 2/19 Parish Feed & Seed 37.11 141.27 2/19 Atm withdrawal 20.00 121.27 2/20 Debit – Joe’s Gas St. 2.19 119.08 105 2/23 Mandy’s Boutique 7.55 111.53 2/24 Atm withdrawal 40.00 71.53 2/26 Pack-A-Sack 4.24 67.29 2/27 Deposit paycheck 118.41 185.70 3/1 Debit – Sammy Mae’s 24.12 161.58 3/3 Debit – Burger Hut 11.11 150.47 3/7 Service charge 4.00 146.47 Key: The alternating shading represents the transactions to be given to the students each day. Most days the students get one new transaction, two days, 2/9 & 2/19, the students get two new transactions. The circled transaction on 2/9 should not be given to the students, it is a forgotten transaction that they will discover when they reconcile their account statement. The deposit on 2/27 is a paycheck for $138.41. The students should record a deposit slip as the paycheck amount with $20 less cash received. The service charge transaction of 3/7 should not be given to the students; they will add it when they reconcile their account statement. Opening amount: $200 in cash plus a paycheck for $168.67. Check deposit slip to see that it is written correctly.
  • 65. Unit 3, Activity 2, The Story of Banks Blackline Masters, Financial Math Page 63 Louisiana Comprehensive Curriculum, Revised 2008 What Are Your Opinions About Banks? 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. Banks are an important tool in helping you manage your financial resources.________ Your reasons: 2. Banks are unhelpful, unfriendly places._________ Your reasons: 3. Most banks make lots of mistakes that cost me money._________ Your reasons: 4. I can manage my money and achieve financial success without banks._________ Your reasons: 5. A bank won’t lend me money, I have no credit._________ Your reasons:
  • 66. Unit 3, Activity 2, The Story of Banks Blackline Masters, Financial Math Page 64 Louisiana Comprehensive Curriculum, Revised 2008 Name________________________ 1. Why do we need banks? 2. Define & name types of “depository institutions.” 3. What is an overdraft? 4. What’s the Federal Reserve? 5. Explain how money gets “created” by banks and savings and loans. 6. What’s compound interest? 7. Why did F.E.D. foods need a marketing plan when they applied for a loan? 8. Name & explain the 5 C’s. 9. Why are short-term loans less risky to banks than long-term loans? 10. How do the Federal Reserve’s actions influence the money supply?
  • 67. Unit 3, Activity 2, The Story of Banks with Answers Blackline Masters, Financial Math Page 65 Louisiana Comprehensive Curriculum, Revised 2008 1. Why do we need banks? Safety and Convenience 2. Define & name types of “depository institutions.” Banks Savings and Loans Mutual Savings Banks Credit Unions 3. What is an overdraft? Write a check for money that’s not in your account. 4. What’s the Federal Reserve? The country’s Central Bank. 5. Explain how money gets “created” by banks and savings and loans. The reserve requirement allows banks to loan a percentage of their deposits as loans, thereby “creating money.” 6. What’s compound interest? Interest earned both on the original amount you deposit and on any interest you’ve already earned. 7. Why did F.E.D. foods need a marketing plan when they applied for a loan? The bank would like to see that the money was going to good use. 8. Name and explain the 5 C’s. Capacity – can you repay the loan Character – clean credit history Collateral – material used to guarantee the loan Capital – personal money invested in the business Conditions – economic factors that might affect your business 9. Why are short-term loans less risky to banks than long-term loans? Because economic conditions may change more in the long term than the short term. 10. How does the Federal Reserve’s actions influence the money supply? They set interest rates.
  • 68. Unit 3, Activity 3, Register Blackline Masters, Financial Math Page 66 Louisiana Comprehensive Curriculum, Revised 2008 Name: 1. Giselle Dostal’s check register had a balance of $618.07 on February 16. She wrote these checks on February 18: #1182 to Edwin’s Towing for $45; #1183 to Farwell Clothiers for $129.16. She deposited her paycheck of $515.35 on February 19. Record these items in Giselle’s check register and compute the running balance. Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 2. The check register of DeWitt Hammond showed a balance of $496.42 on July 11. He deposited a payroll check of $318.91 on July 12. On July 13 these checks were written: #121 for $525 to Harwell Apartments; #122 for $98.08 to Newman Credit; and #123 for $75 to United Way. Record these transactions and compute the running balance. Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 3. Celia Stavros’ check register showed a balance of $1,914.56 on April 12. On April 13, Check #516 for $282.87 was made payable to the U.S. Treasury. An internet transfer (deposit) of $678.42 was made on April 15. These checks were written on April 18: #517 to Foster Markets, $96.24; #518 to Glasko Auto, $314.48; #519 to Body Tone Health Club, $95. Record these transactions and compute the running balance. Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance
  • 69. Unit 3, Activity 2, Register with Answers Blackline Masters, Financial Math Page 67 Louisiana Comprehensive Curriculum, Revised 2008 1. Giselle Dostal’s check register had a balance of $618.07 on February 16. She wrote these checks on February 18: #1182 to Edwin’s Towing for $45; #1183 to Farwell Clothiers for $129.16. She deposited her paycheck of $515.35 on February 19. Record these items in Giselle’s check register and compute the running balance. Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 2/16 Previous balance 618.07 1182 2/18 Edwin’s Towing 45.00 573.07 1183 2/18 Farwell Clothiers 129.16 443.91 Dep 2/19 Paycheck 515.35 959.26 2. The check register of DeWitt Hammond showed a balance of $496.42 on July 11. He deposited a payroll check of $318.91 on July 12. On July 13 these checks were written: #121 for $525 to Harwell Apartments; #122 for $98.08 to Newman Credit; and #123 for $75 to United Way. Record these transactions and compute the running balance. Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 7/11 Previous balance 496.42 Dep 7/12 Paycheck 318.91 815.33 121 7/13 Harwell Apts. 525.00 290.33 122 7/13 Newman Credit 98.08 192.25 123 7/13 United Way 75.00 117.25 3. Celia Stavros’ check register showed a balance of $1,914.56 on April 12. On April 13, Check #516 for $282.87 was made payable to the U.S. Treasury. An internet transfer (deposit) of $678.42 was made on April 15. These checks were written on April 18: #517 to Foster Markets, $96.24; #518 to Glasko Auto, $314.48; #519 to Body Tone Health Club, $95. Record these transactions and compute the running balance. Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 4/12 Previous balance 1,914.56 516 4/13 U.S.Treasury 282.87 1,631.69 Dep 4/15 Transfer 678.42 2,310.11 517 4/18 Foster Market 96.24 2,213.87 518 4/18 Glask Auto 314.48 1,899.39 519 4/18 Body Tone HC 95.00 1,804.39
  • 70. Unit 3, Activity 2, Reconciling a Checking Account Notes Blackline Masters, Financial Math Page 68 Louisiana Comprehensive Curriculum, Revised 2008 Reconciling a Checking Account Notes Notes: Documents Needed: Materials Needed: Step 1: Step 2: Step 3: Step 4: Step 5: Step 6:
  • 71. Unit 3, Activity 2, Reconciling a Checking Account Notes with Answers Blackline Masters, Financial Math Page 69 Louisiana Comprehensive Curriculum, Revised 2008 Reconciling a Checking Account Notes Notes: Documents Needed: 1. Check Register 2. Bank Statement Materials Needed: 1. Highlighter 2. Pencil 3. Calculator Step 1: Find common items Compare the check register to the bank statement to find transactions common to both. Place a check mark in your check register, in the appropriate column, and highlight on your bank statement those common transactions as you find them. Step 2: Review check register Any un-checked transactions in your check register are outstanding transactions; items that haven’t cleared the bank. You will need to add those to your reconciliation worksheet. Write the withdrawal transactions in the “Outstanding Checks” space on your reconciliation worksheet. Write the deposits in the “Outstanding Deposits” space on your reconciliation worksheet. Step 3: Review bank statement Any un-highlighted transactions on your bank statement are either items you forgot to record, or automatic transactions like service charge or a previously set-up electronic funds transfer. Record all these un-highlighted transactions in your check register except service charge and/or interest earned, they will be added later. Step 4: Reconciliation Worksheet Begin on the left side; this is where your check register numbers get recorded. Follow the directions on the worksheet. Move to the right side; this is where your bank statement numbers get recorded. Remember you have already written in the outstanding checks and deposits on this side. Follow the directions on the worksheet. Step 5: Final Review The “New Balance” and “Adjusted Balance” on the reconciliation worksheet should be the same. Now record any service charge and/or interest earned in your check register. Your final check register balance is your correct balance as of the date of the bank statement. Step 6: Finish-Up In your check register, draw a line across the entire register after the last transaction recorded. Below that line write, “Correct as of (date on your bank statement), and draw another line under this entry. This will allow you to know, for future reconciliation problems, that your check register was accurate as of this date. You are done.
  • 72. Unit 3, Activity 3, Practice One Blackline Masters, Financial Math Page 70 Louisiana Comprehensive Curriculum, Revised 2008 Name: 1. Olga Gleason’s bank statement balance on March 31 was $2,371.40. On the same date, her check register balance was $1,732.39. The bank statement showed a service charge of $8.30 and interest earned of $1.12. The checkbook showed three outstanding checks: #988 for $173.19, #990 for $417.28, and #991 for $55.72. Reconcile Olga’s bank statement and check register. Reconciliation Worksheet Check Register Balance $ Statement Balance $ Outstanding Checks - (list separately) Interest + Outstanding Deposits + (list separately) Service Charge - New Balance $ Adjusted Balance $ 3. Chikabumi Onodera’s check register balance on September 30 was $466.23. On the same date, the bank statement showed a balance of $590.51. Included on the statement were three items not recorded in the check register: service charge of $5.40, interest earned of $0.68, and an ATM deposit for $129. Reconcile Chikabumi’s check register. Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance
  • 73. Unit 3, Activity 3, Practice One Blackline Masters, Financial Math Page 71 Louisiana Comprehensive Curriculum, Revised 2008 3. Sheldon Jennings’ check register balance on July 31 was $525.58. His bank statement balance on July 31 was $610.91. When he compared his check register with his bank statement, the statement showed a service charge of $12.75 and interest earned of $1.01. His check register showed three outstanding checks: #675 for $89.32, #676 for $21.18, and #679 for $200.57. Also, a deposit of $214 was made too late to appear on the statement. Reconcile Sheldon’s bank statement and check register. Reconciliation Worksheet Check Register Balance $ Statement Balance $ Outstanding Checks - (list separately) Interest + Outstanding Deposits + (list separately) Service Charge - New Balance $ Adjusted Balance $ Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 4. On December 31, Hertha Bauer’s check register balance was $265.86 and her bank statement balance was $599.42. The total amount of deposits on the statement was $456.12 and the total amount of checks was $500.23. The statement also showed a service charge of $2.45, $17.75 charge for printed checks, and a deposit of $235.67 that had not been recorded in the check register. There was one outstanding check for $118.09. Reconcile her check register. Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance
  • 74. Unit 3, Activity 3, Practice One with Answers Blackline Masters, Financial Math Page 72 Louisiana Comprehensive Curriculum, Revised 2008 1. Olga Gleason’s bank statement balance on March 31 was $2,371.40. On the same date, her check register balance was $1,732.39. The bank statement showed a service charge of $8.30 and interest earned of $1.12. The checkbook showed three outstanding checks: #988 for $173.19, #990 for $417.28, and #991 for $55.72. Reconcile Olga’s bank statement and check register. Reconciliation Worksheet Check Register Balance $1,732.39 Statement Balance $2,371.40 Outstanding Checks -646.19 (list separately) 988-173.19 Interest +1.12 990-417.28 991-55.72 Outstanding Deposits +0 (list separately) Service Charge -8.30 New Balance $1,725.21 Adjusted Balance $1,725.21 3. Chikabumi Onodera’s check register balance on September 30 was $466.23. On the same date, the bank statement showed a balance of $590.51. Included on the statement were three items not recorded in the check register: service charge of $5.40, interest earned of $0.68, and an ATM deposit for $129. Reconcile Chikabumi’s check register. Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 9/30 Previous balance 466.23 9/30 Service charge 5.40 460.83 9/30 Interest earned 0.68 461.51 9/30 ATM Deposit 129.00 590.51 Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 3/31 Previous balance 1,732.39 3/31 Service charge 8.30 1,724.09 3/31 Interest earned 1.12 1,725.21
  • 75. Unit 3, Activity 3, Practice One with Answers Blackline Masters, Financial Math Page 73 Louisiana Comprehensive Curriculum, Revised 2008 3. Sheldon Jennings’ check register balance on July 31 was $525.58. His bank statement balance on July 31 was $610.91. When he compared his check register with his bank statement, the statement showed a service charge of $12.75 and interest earned of $1.01. His check register showed three outstanding checks: #675 for $89.32, #676 for $21.18, and #679 for $200.57. Also, a deposit of $214 was made too late to appear on the statement. Reconcile Sheldon’s bank statement and check register. Reconciliation Worksheet Check Register Balance $525.58 Statement Balance $610.91 Outstanding Checks -311.07 (list separately) 675-89.32 Interest +1.01 676-21.18 679-200.57 Outstanding Deposits +214.00 (list separately) Service Charge -12.75 New Balance $513.84 Adjusted Balance $513.84 Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 7/31 Previous balance 525.58 7/31 Service charge 12.75 512.83 7/31 Interest earned 1.01 513.84 4. On December 31, Hertha Bauer’s check register balance was $265.86 and her bank statement balance was $599.42. The total amount of deposits on the statement was $456.12 and the total amount of checks was $500.23. The statement also showed a service charge of $2.45, $17.75 charge for printed checks, and a deposit of $235.67 that had not been recorded in the check register. There was one outstanding check for $118.09. Reconcile her check register. Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 12/31 Previous balance 265.86 12/31 Service charge 2.45 263.41 12/31 Check printing 17.75 245.66 Dep 12/31 Deposit 235.67 481.33
  • 76. Unit 3, Activity 3, Practice Two Blackline Masters, Financial Math Page 74 Louisiana Comprehensive Curriculum, Revised 2008 Name: 1. On July 31, Ilene Darin’s bank statement showed a balance of $1,001.79. Her check register’s balance was $718.29. While comparing the bank statement to the check register, Ilene found a service charge of $13.65, that check 367 for $76.09 had been recorded in the check register as $67.09, a deposit of $194.35 made on July 10 had not been recorded in the check register, and check 371 for $47.36 had been recorded twice in the check register. An electronic funds transfer(EFT) loan payment for $159.10 also was not recorded in the check register. A deposit of $350 was recorded in the check register but was made too late to appear on the bank statement. Outstanding checks were 363 for $157.73 and 374 for $415.81. Reconcile Ilene’s bank statement and check register. Reconciliation Worksheet Check Register Balance $ Statement Balance $ Outstanding Checks - (list separately) Interest + Outstanding Deposits + (list separately) Service Charge - New Balance $ Adjusted Balance $ Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance
  • 77. Unit 3, Activity 3, Practice Two Blackline Masters, Financial Math Page 75 Louisiana Comprehensive Curriculum, Revised 2008 2. On February 28, Woodrow Fraser’s check register balance was $424.09 and his bank statement balance was $343.15. Comparing the register with the bank statement, he found a service charge for $13.50 and interest earned of $0.92 listed on the statement. He also found that he had failed to record check 986 to Schiller Furniture for $135.65, an ATM withdrawal for $70, and an ATM user fee of $1.50 in his check register. Also, check 985 for $86.32 was recorded in the register as $86.23. Outstanding checks were 988 for $18.15 and 989 for $268.73. A deposit mailed on February 26 for $148 was not listed on the bank statement. Reconcile Woodrow’s bank statement and check register. Reconciliation Worksheet Check Register Balance $ Statement Balance $ Outstanding Checks - (list separately) Interest + Outstanding Deposits + (list separately) Service Charge - New Balance $ Adjusted Balance $ Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance
  • 78. Unit 3, Activity 3, Practice Two with Answers Blackline Masters, Financial Math Page 76 Louisiana Comprehensive Curriculum, Revised 2008 1. On July 31, Ilene Darin’s bank statement showed a balance of $1,001.79. Her check register’s balance was $718.29. While comparing the bank statement to the check register, Ilene found a service charge of $13.65, that check 367 for $76.09 had been recorded in the check register as $67.09, a deposit of $194.35 made on July 10 had not been recorded in the check register, and check 371 for $47.36 had been recorded twice in the check register. An electronic funds transfer(EFT) loan payment for $159.10 also was not recorded in the check register. A deposit of $350 was recorded in the check register but was made too late to appear on the bank statement. Outstanding checks were 363 for $157.73 and 374 for $415.81. Reconcile Ilene’s bank statement and check register. Reconciliation Worksheet Check Register Balance $791.90 Statement Balance $1,001.79 Outstanding Checks -573.54 (list separately) 363-157.73 Interest +0 374-415.81 Outstanding Deposits +350.00 (list separately) Service Charge -13.65 350.00 New Balance $778.25 Adjusted Balance $778.25 Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 7/31 Previous balance 718.29 367 7/31 Fix-wrong amount 67.09 785.38 367 7/31 Fix-correct amount 76.09 709.29 Dep 7/31 7/10-deposit 194.35 903.64 371 7/31 Fix-recorded twice 47.36 951.00 EFT 7/31 Loan payment 159.10 791.90 7/31 Service charge 13.65 778.25 Note: This amount is entered into the reconciliation worksheet above. The student must add the forgotten transactions and correct the mistakes before they complete the reconciliation worksheet.
  • 79. Unit 3, Activity 3, Practice Two with Answers Blackline Masters, Financial Math Page 77 Louisiana Comprehensive Curriculum, Revised 2008 2. On February 28, Woodrow Fraser’s check register balance was $424.09 and his bank statement balance was $343.15. Comparing the register with the bank statement, he found a service charge for $13.50 and interest earned of $0.92 listed on the statement. He also found that he had failed to record check 986 to Schiller Furniture for $135.65, an ATM withdrawal for $70, and an ATM user fee of $1.50 in his check register. Also, check 985 for $86.32 was recorded in the register as $86.23. Outstanding checks were 988 for $18.15 and 989 for $268.73. A deposit mailed on February 26 for $148 was not listed on the bank statement. Reconcile Woodrow’s bank statement and check register. Reconciliation Worksheet Check Register Balance $216.85 Statement Balance $343.15 Outstanding Checks -286.88 (list separately) 988-18.15 Interest +0.92 989-268.73 Outstanding Deposits +148.00 (list separately) Service Charge -13.50 148.00 New Balance $204.27 Adjusted Balance $204.27 Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 2/28 Previous balance 424.09 986 2/28 Schiller Furniture 135.65 288.44 ATM 2/28 Cash 70.00 218.44 ATM 2/28 Fee 1.50 216.94 985 2/28 Fix-wrong amount 86.23 303.17 985 2/28 Fix-correct amount 86.32 216.85 2/28 Interest earned 0.92 217.77 2/28 Service charge 13.50 204.27 Note: This amount is entered into the reconciliation worksheet above. The student must add the forgotten transactions and correct the mistakes before they complete the reconciliation worksheet.
  • 80. Unit 3, Activity 3, Practice Three Blackline Masters, Financial Math Page 78 Louisiana Comprehensive Curriculum, Revised 2008 Name:______________________________________ Use the bank statement, the check register, and the reconciliation worksheet to balance this checkbook. Trans-Louisiana School Bank Account Statement Statement closing Date: 7/19/2008 Check Number Amount Date Description Reference Number 161 162 163 35.00 55.00 216.30 20.00 54.11 82.87 1,000.00 1,200.00 6/18 6/18 6/21 6/25 6/26 6/26 6/29 6/23 Checks and Other Debits ATM withdrawal loc. 423A Debit Foodland EFT Check ATM withdrawal loc. 426B Debit EZ-Shoppe EFT Check Check Deposits and Other Credits Transfer from #4039-557 at ATM#423C 00281 00586 00476 01275 10038 Items Enclosed Balance Last Statement Total Amount Charged Total Amount Credited Balance This Statement 3 150.67 1,246.98 1,200.00 103.69 * Indicates the next sequentially numbered check or checks may have (1) been voided by you, (2) not yet been presented to the bank, or (3) appeared on a previous statement. S B TL
  • 81. Unit 3, Activity 3, Practice Three Blackline Masters, Financial Math Page 79 Louisiana Comprehensive Curriculum, Revised 2008 Reconciliation Worksheet Check Register Balance $ Statement Balance $ Outstanding Checks - (list separately) Interest + Outstanding Deposits + (list separately) Service Charge - New Balance $ Adjusted Balance $ Worksheet Instructions: 1. Add to your check register any unlisted transactions from your bank statement. 2. Enter your check register balance. 3. Add any interest earned. 4. Subtract service charge paid. 5. This is your check register new balance. 6. Enter the balance shown on you bank statement. 7. List and subtract any outstanding checks. 8. List and add any outstanding deposits. 9. This is your adjusted bank statement balance. Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 6/1 Previous balance 366.97 161 6/4 Sound Out 216.30 150.67 ATM 6/18 Cash 35.00 115.67 Debit 6/18 Foodland Groc. 55.00 60.67 DEP 6/23 Xfer from savings 1,200.00 1,260.67 162 6/24 Racy’s 82.87 1,177.80 ATM 6/25 Cash 20.00 1,157.80 163 6/26 Woodland Apts. 1,000.00 157.80 Debit 6/26 EZ Shoppe 54.11 103.69 164 7/5 CD Place 26.31 77.38 165 7/14 Dufasfilm, Ltd. 10.00 67.38 DEP 7/19 Paycheck 253.17 320.55
  • 82. Unit 3, Activity 3, Practice Three with Answers Blackline Masters, Financial Math Page 80 Louisiana Comprehensive Curriculum, Revised 2008 Use the bank statement, the check register, and the reconciliation worksheet to balance this checkbook. Trans-Louisiana School Bank Account Statement Statement closing Date: 7/19/2008 Check Number Amount Date Description Reference Number 161 162 163 35.00 55.00 216.30 20.00 54.11 82.87 1,000.00 1,200.00 6/18 6/18 6/21 6/25 6/26 6/26 6/29 6/23 Checks and Other Debits ATM withdrawal loc. 423A Debit Foodland EFT Check ATM withdrawal loc. 426B Debit EZ-Shoppe EFT Check Check Deposits and Other Credits Transfer from #4039-557 at ATM#423C 00281 00586 00476 01275 10038 Items Enclosed Balance Last Statement Total Amount Charged Total Amount Credited Balance This Statement 3 150.67 1,246.98 1,200.00 103.69 * Indicates the next sequentially numbered check or checks may have (1) been voided by you, (2) not yet been presented to the bank, or (3) appeared on a previous statement. S B TL
  • 83. Unit 3, Activity 3, Practice Three with Answers Blackline Masters, Financial Math Page 81 Louisiana Comprehensive Curriculum, Revised 2008 Reconciliation Worksheet Check Register Balance $320.55 Statement Balance $103.69 Outstanding Checks -36.31 (list separately) 164-26.31 Interest +0 165-10.00 Outstanding Deposits +253.17 (list separately) Service Charge -0 253.17 New Balance $320.55 Adjusted Balance $320.55 Worksheet Instructions: 10. Add to your check register any unlisted transactions from your bank statement. 11. Enter your check register balance. 12. Add any interest earned. 13. Subtract service charge paid. 14. This is your check register new balance. 15. Enter the balance shown on you bank statement. 16. List and subtract any outstanding checks. 17. List and add any outstanding deposits. 18. This is your adjusted bank statement balance. Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 6/1 Previous balance 366.97 161 6/4 Sound Out 216.30 150.67 ATM 6/18 Cash 35.00 115.67 Debit 6/18 Foodland Groc. 55.00 60.67 DEP 6/23 Xfer from savings 1,200.00 1,260.67 162 6/24 Racy’s 82.87 1,177.80 ATM 6/25 Cash 20.00 1,157.80 163 6/26 Woodland Apts. 1,000.00 157.80 Debit 6/26 EZ Shoppe 54.11 103.69 164 7/5 CD Place 26.31 77.38 165 7/14 Dufasfilm, Ltd. 10.00 67.38 DEP 7/19 Paycheck 253.17 320.55
  • 84. Unit 3, Activity 3, Practice Four Blackline Masters, Financial Math Page 82 Louisiana Comprehensive Curriculum, Revised 2008 Name:______________________________________ Use the bank statement, the check register, and the reconciliation worksheet to balance this checkbook. Trans-Louisiana School Bank Account Statement Statement closing Date: 12/31/2008 Check Number Amount Date Description Reference Number 315 316 317 318* 322 50.00 275.80 99.22 100.00 312.93 143.60 96.19 465.00 132.42 516.20 516.20 4.75 12/03 12/07 12/10 12/11 12/15 12/17 12/28 12/28 Checks and Other Debits ATM withdrawal Check Check ATM withdrawal Check Check Check EFT Peoples Savings Deposits and Other Credits EFT CD Interest Credit Deposit branch #1249 Deposit branch #1249 Interest Earned 681765 249247 249861 681983 249187 249193 249337 817130 756358 332196 332552 527168 Items Enclosed Balance Last Statement Total Amount Charged Total Amount Credited Balance This Statement 5 768.70 1,542.74 1,169.57 395.53 * Indicates the next sequentially numbered check or checks may have (1) been voided by you, (2) not yet been presented to the bank, or (3) appeared on a previous statement. S B TL
  • 85. Unit 3, Activity 3, Practice Four Blackline Masters, Financial Math Page 83 Louisiana Comprehensive Curriculum, Revised 2008 Reconciliation Worksheet Check Register Balance $ Statement Balance $ Outstanding Checks - (list separately) Interest + Outstanding Deposits + (list separately) Service Charge - New Balance $ Adjusted Balance $ Worksheet Instructions: 19. Add to your check register any unlisted transactions from your bank statement. 20. Enter your check register balance. 21. Add any interest earned. 22. Subtract service charge paid. 23. This is your check register new balance. 24. Enter the balance shown on you bank statement. 25. List and subtract any outstanding checks. 26. List and add any outstanding deposits. 27. This is your adjusted bank statement balance. Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 12/02 Previous balance 768.70 Atm 12/03 Cash 50.00 718.70 315 12/07 Car payment 275.80 442.40 316 12/10 King Food 99.22 343.68 Dep 12/10 Paycheck 516.20 859.88 Atm 12/11 Cash 100.00 759.88 317 12/14 Universal Appliance 312.93 446.95 318 12/17 Metro Electrical 143.60 303.35 Dep 12/23 Paycheck 516.20 819.55 319 12/25 Parish Drug Store 17.93 801.62 320 Void 801.62 321 12/27 Suburban news 15.80 785.82 322 12/28 King Food 96.19 689.63
  • 86. Unit 3, Activity 3, Practice Four Blackline Masters, Financial Math Page 84 Louisiana Comprehensive Curriculum, Revised 2008 Use the bank statement, the check register, and the reconciliation worksheet to balance this checkbook. Trans-Louisiana School Bank Account Statement Statement closing Date: 12/31/2008 Check Number Amount Date Description Reference Number 315 316 317 318* 322 50.00 275.80 99.22 100.00 312.93 143.60 96.19 465.00 132.42 516.20 516.20 4.75 12/03 12/07 12/10 12/11 12/15 12/17 12/28 12/28 Checks and Other Debits ATM withdrawal Check Check ATM withdrawal Check Check Check EFT Peoples Savings Deposits and Other Credits EFT CD Interest Credit Deposit branch #1249 Deposit branch #1249 Interest Earned 681765 249247 249861 681983 249187 249193 249337 817130 756358 332196 332552 527168 Items Enclosed Balance Last Statement Total Amount Charged Total Amount Credited Balance This Statement 5 768.70 1,542.74 1,169.57 395.53 * Indicates the next sequentially numbered check or checks may have (1) been voided by you, (2) not yet been presented to the bank, or (3) appeared on a previous statement. S B TL
  • 87. Unit 3, Activity 3, Practice Four with Answers Blackline Masters, Financial Math Page 85 Louisiana Comprehensive Curriculum, Revised 2008 Reconciliation Worksheet Check Register Balance $357.05 Statement Balance $395.53 Outstanding Checks -33.73 (list separately) 319-17.93 Interest +4.75 321-15.80 Outstanding Deposits +0 (list separately) Service Charge -0 New Balance $361.80 Adjusted Balance $361.80 Worksheet Instructions: 28. Add to your check register any unlisted transactions from your bank statement. 29. Enter your check register balance. 30. Add any interest earned. 31. Subtract service charge paid. 32. This is your check register new balance. 33. Enter the balance shown on you bank statement. 34. List and subtract any outstanding checks. 35. List and add any outstanding deposits. 36. This is your adjusted bank statement balance. Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 12/02 Previous balance 768.70 Atm 12/03 Cash 50.00 718.70 315 12/07 Car payment 275.80 442.40 316 12/10 King Food 99.22 343.68 Dep 12/10 Paycheck 516.20 859.88 Atm 12/11 Cash 100.00 759.88 317 12/14 Universal Appliance 312.93 446.95 318 12/17 Metro Electrical 143.60 303.35 Dep 12/23 Paycheck 516.20 819.55 319 12/25 Parish Drug Store 17.93 801.62 320 Void 801.62 321 12/27 Suburban news 15.80 785.82 322 12/28 King Food 96.19 689.63 Dep 12/31 CD interest 132.42 822.05 EFT 12/31 Peoples Savings 465.00 357.05 12/31 Interest 4.75 361.80
  • 88. Unit 3, Activity 6, Electronic Banking Blackline Masters, Financial Math Page 86 Louisiana Comprehensive Curriculum, Revised 2008 Name: 1. On March 11, Hattie St. Aubin used an ATM to deposit a check for $613.15 and to withdraw $125 in cash for shopping. Her starting balance on that date was $211.76. Record these transactions and compute the running balance. Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 2. Stephen Awrey used a debit card to pay for the following three purchases: May 23, groceries, $91.34; May 24, auto parts, $18.50; May 24, scanner, $196.18. Stephen’s check register balance on May 22 was $432.78. Record these transactions and compute the running balance. Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 3. On March 15 Russell Hobart noticed his tax refund check for $127.56 had been direct deposited over the weekend. On that same day he withdrew $80 cash from an ATM. He used his debit card to make these purchases: March 16, books, $38.24; March 18, set of dishes, $148.09; March 21, concert tickets, $76.50. His starting bank balance was $891.58 on March 14. Record these transactions and compute the running balance. Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance
  • 89. Unit 3, Activity 6, Electronic Banking Blackline Masters, Financial Math Page 87 Louisiana Comprehensive Curriculum, Revised 2008 4. On September 12, Rosaria Shearer went by the ATM on her way to work. She deposited a check for $136 and withdrew $140 in cash. Throughout the week she made these purchases with her debit card: September 12, kitchen table and chairs, $643.24; September 14, unfinished bookcase, $98.45; September 15, greeting cards, $12.50. Her balance on September 11 was $1,011.86. Record these transactions and compute the running balance. Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 5. Gunther Flieghe had a bank balance of $782.23 on Monday, August 10. On Tuesday, he made debit purchases for $128.39, $29.32, and $78.92. On Wednesday, he used another bank’s ATM to withdraw $100 cash. The bank charged a $2.50 fee for this transaction. A direct deposit of Gunther’s paycheck for $611.45 was made at noon on Friday. On Friday evening Gunther used his debit card to pay a restaurant bill of $32.43. Record these transactions and compute the running balance. Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance
  • 90. Unit 3, Activity 6, Electronic Banking with Answers Blackline Masters, Financial Math Page 88 Louisiana Comprehensive Curriculum, Revised 2008 1. On March 11, Hattie St. Aubin used an ATM to deposit a check for $613.15 and to withdraw $125 in cash for shopping. Her starting balance on that date was $211.76. Record these transactions and compute the running balance. Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 3/11 Starting balance 211.76 Dep 3/11 Check 613.15 824.91 ATM 3/11 Cash 125.00 699.91 2. Stephen Awrey used a debit card to pay for the following three purchases: May 23, groceries, $91.34; May 24, auto parts, $18.50; May 24, scanner, $196.18. Stephen’s check register balance on May 22 was $432.78. Record these transactions and compute the running balance. Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 5/22 Starting balance 432.78 Debit 5/23 Groceries 91.34 341.44 Debit 5/24 Auto parts 18.50 322.94 Debit 5/24 Scanner 196.18 126.76 3. On March 15 Russell Hobart noticed his tax refund check for $127.56 had been direct deposited over the weekend. On that same day he withdrew $80 cash from an ATM. He used his debit card to make these purchases: March 16, books, $38.24; March 18, set of dishes, $148.09; March 21, concert tickets, $76.50. His starting bank balance was $891.58 on March 14. Record these transactions and compute the running balance. Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 3/14 Starting balance 891.58 Dep 3/15 Tax refund check 127.56 1,019.14 ATM 3/15 Cash 80.00 939.14 Debit 3/16 Books 38.24 900.90 Debit 3/18 Dishes 148.09 752.81 Debit 3/21 Concert tickets 76.50 676.31
  • 91. Unit 3, Activity 6, Electronic Banking with Answers Blackline Masters, Financial Math Page 89 Louisiana Comprehensive Curriculum, Revised 2008 4. On September 12, Rosaria Shearer went by the ATM on her way to work. She deposited a check for $136 and withdrew $140 in cash. Throughout the week she made these purchases with her debit card: September 12, kitchen table and chairs, $643.24; September 14, unfinished bookcase, $98.45; September 15, greeting cards, $12.50. Her balance on September 11 was $1,011.86. Record these transactions and compute the running balance. Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 9/11 Starting balance 1,011.86 Dep 9/12 Check 136.00 1147.86 ATM 9/12 Cash 140.00 1007.86 Debit 9/12 Table and chairs 643.24 364.62 Debit 9/14 Bookcase 98.45 266.17 Debit 9/15 Greeting cards 12.50 253.67 5. Gunther Flieghe had a bank balance of $782.23 on Monday, August 10. On Tuesday, he made debit purchases for $128.39, $29.32, and $78.92. On Wednesday, he used another bank’s ATM to withdraw $100 cash. The bank charged a $2.50 fee for this transaction. A direct deposit of Gunther’s paycheck for $611.45 was made at noon on Friday. On Friday evening Gunther used his debit card to pay a restaurant bill of $32.43. Record these transactions and compute the running balance. Check No. Date Checks issued to or description of deposit Amount of check √ Amount of deposit Balance 8/10 Starting balance 782.23 Debit 8/11 128.39 653.84 Debit 8/11 29.32 624.52 Debit 8/11 78.92 545.60 ATM 8/12 Cash 100.00 445.60 8/12 Atm fee 2.50 443.10 Dep 8/14 Paycheck 611.45 1,054.55 Debit 8/14 Dinner 32.43 1,022.12
  • 92. Unit 3, Activity 7, Financial Plan Outline Blackline Masters, Financial Math Page 90 Louisiana Comprehensive Curriculum, Revised 2008 This is an internet activity in which you will research financial planning and create an outline of the information contained in a personal financial plan. The following internet address may be helpful: http://www.usaaedfoundation.com/financial/bi01.asp Prepare a financial plan the outline below. You should include information on each of the components of the outline and integrate your previously prepared goals into this document. The outline should contain these five components: 1. Set goals. 2. Prepare a net worth statement. 3. Gather past income and expense records. 4. Analyze current income, expense and savings practices 5. Evaluate current practices versus future goals FYI: A financial plan is a living document that changes as we move through our working lifecycle. A financial plan is a life-long decision-making process.
  • 93. Unit 3, Activity 8, Responsibility Blackline Masters, Financial Math Page 91 Louisiana Comprehensive Curriculum, Revised 2008 Task: 1. This is a group activity, arrange into groups of three or four 2. Discuss the tenants of personal financial responsibility. 3. Complete the chart below. 4. You may use the Internet to aid in your understanding of the tenants of personal financial responsibility. 5. The first row is filled-in as an example. Tenants of Personal Financial Responsibility Property/Audience Pros Cons Financial security One can have all the things within his/her financial means Requires discipline
  • 94. Unit 3, Activity 9, The Story of Checks and Electronic Payments Blackline Masters, Financial Math Page 92 Louisiana Comprehensive Curriculum, Revised 2008 Task: 1. Read The Story of Checks and Electronic Payments 2. Answer the following open-ended questions: Why do people use checks? How do you write a check? How do you manage a checking account? What is the role of the Federal Reserve in processing checks? How do electronic funds transfers make it easier to make payments? You may include references from within the comic book for your answers as well as references from any prior knowledge you have gained in this unit. Answers to each question should be in paragraph form.
  • 95. Unit 3, General Assessments, Test Blackline Masters, Financial Math Page 93 Louisiana Comprehensive Curriculum, Revised 2008 Name:______________________________________________________ Use this bank statement along with your check register and the worksheet on the back to reconcile this account. Trans-Louisiana School Bank Account Statement Statement closing Date: 3/7/2008 Check Number Amount Date Description Reference Number 101 102* 104 368.67 22.13 40.00 60.00 17.31 20.00 11.86 37.11 20.00 2.19 40.00 4.00 2/8 2/10 2/10 2/11 2/15 2/15 2/16 2/22 2/22 2/23 2/25 3/7 Deposit Check ATM Branch # 12 ATM Branch # 43 Check ATM Branch #43 Debit – Joe’s Gas Station#4 Check ATM Branch #12 Debit – Joe’s Gas Station #4 ATM Branch #12 Service Charge 98978 88851 12365 12366 88852 12367 45877 88853 12368 45878 12369 00015 Items Enclosed Balance Last Statement Total Amount Charged Total Amount Credited Balance This Statement 12 0.00 274.60 368.67 94.07 * Indicates the next sequentially numbered check or checks may have (1) been voided by you, (2) not yet been presented to the bank, or (3) appeared on a previous statement. S B TL
  • 96. Unit 3, General Assessments, Test Blackline Masters, Financial Math Page 94 Louisiana Comprehensive Curriculum, Revised 2008 Reconciliation Worksheet Check Register Balance $ Statement Balance $ Outstanding Checks - (list separately) Interest + Outstanding Deposits + (list separately) Service Charge - New Balance $ Adjusted Balance $ Worksheet Instructions: 37. Add to your check register any unlisted transactions from your bank statement. 38. Enter your check register balance. 39. Add any interest earned 40. Subtract service charge paid. 41. This is your check register new balance. 42. Enter the balance shown on you bank statement. 43. List and subtract any outstanding checks. 44. List and add any outstanding deposits. 45. This is your adjusted bank statement balance. Turn in: 1. Completed Checking Account Application Form 2. Check Register 3. Bank Statement, with completed worksheet 4. All Checks and Deposit Slips written during this project
  • 97. Unit 3, General Assessments, Test with Answers Blackline Masters, Financial Math Page 95 Louisiana Comprehensive Curriculum, Revised 2008 The reconciliation worksheet answers are included as well as a scoring template for the check register, checks written, deposit slips written and account application. Reconciliation Worksheet Check Register Balance $150.47 Statement Balance $94.07 Outstanding Checks -66.01 (list separately) 103-8.99, debit-11.11 Interest +0 Atm-10.00 105-7.55 Debit-4.24 Debit-24.12 Outstanding Deposits +118.41 (list separately) Service Charge -4.00 Paycheck-118.41 New Balance $146.47 Adjusted Balance $146.47 Scoring Template Item Point Value Account application completed correctly 9 7 checks written correctly 7 2 deposit slips written correctly 2 21 register entries 21 10 statement entries highlighted 10 Check register balance correct 3 New balance correct 10 Statement Balance correct 3 Outstanding checks correct 6 8 outstanding checks on worksheet correct 8 Outstanding deposits correct 6 Adjusted balance correct 10 TOTAL 95
  • 98. Unit 3, Activity 8, Specific Assessment, Financial Responsibility Rubric Blackline Masters, Financial Math Page 96 Louisiana Comprehensive Curriculum, Revised 2008 Beginning 1 Developing 2 Accomplished 3 Exemplary 4 Score Deposit Sips Poor handwriting, not totaled, “Less Cash” not subtracted from deposit Not totaled correctly, “Less Cash” not subtracted from deposit Totaled correctly except “Less Cash” Totaled correctly Multiply score times 5 for final score. Checks Poor handwriting, numerals don’t match written numbers, not signed, no info on “For” line Not signed, no info on “For” line Correctly written, difficult to read. Correctly written, readable. Multiply score times 10 for final score. Check Register Transactions not in correct column, poorly written, many missing transactions Transactions not in correct column, poorly written, some missing transactions Transactions in correct column, some missing transactions Transactions in correct column, no missing transactions. Multiply score times 10 for final score. Record Keeping Student did not do the reconciliation. Student missing many of the checks and deposit slips to complete the reconciliation. Student missing some of the checks and deposit slips to complete the reconciliation Student had all the checks and deposit slips to complete the reconciliation. Multiply score times 10 for final score. Reconciliation Student cannot reconcile a checking account. Student doesn’t understand major steps in process. Student makes minor mistakes in arithmetic or procedure. Students successfully reconciled the checking account. Multiply score times 20 for final score. Final Score:
  • 99. Unit 3, Activity 8, Specific Assessment, Financial Responsibility Rubric Blackline Masters, Financial Math Page 97 Louisiana Comprehensive Curriculum, Revised 2008 Personal Financial Responsibility Name: _____________________ Teacher: Date: ______________________ ______________ Skills Criteria Points 1 2 3 4 Helping: The teacher observed the students offering assistance to each other. None of the Time Some of the Time Most of the Time All of the Time ____ Listening: The teacher observed students working from each other's ideas. None of the Time Some of the Time Most of the Time All of the Time ____ Participating: The teacher observed each student contributing to the project. None of the Time Some of the Time Most of the Time All of the Time ____ Persuading: The teacher observed the students exchanging, defending, and rethinking ideas. None of the Time Some of the Time Most of the Time All of the Time ____ Questioning: The teacher observed the students interacting, discussing, and posing questions to all members of the team. None of the Time Some of the Time Most of the Time All of the Time ____ Respecting: The teacher observed the students encouraging and supporting the ideas and efforts of others. None of the Time Some of the Time Most of the Time All of the Time ____ Sharing: The teacher observed the students offering ideas and reporting their findings to each other. None of the Time Some of the Time Most of the Time All of the Time ____ Total Points ____ Teacher Comments: Powered by TeAch-nology.com- The Web Portal For Educators! (www.teach-nology.com)
  • 100. Unit 4, Activity 2, Differences Grid Example Blackline Masters, Financial Math Page 98 Louisiana Comprehensive Curriculum, Revised 2008 Similarity/ Difference Checking Savings
  • 101. Unit 4, Activity 3, A Penny Saved Blackline Masters, Financial Math Page 99 Louisiana Comprehensive Curriculum, Revised 2008 A Penny Saved Task: Read A Penny Saved and answer the following questions on your own paper: 1. Why do we save? 2. What is the opportunity cost of saving? 3. What is compound interest? 4. Explain why compound interest is an advantage. 5. Explain the Rule of 72. 6. Define liquidity. 7. Why are interest rates higher on longer-term deposits? 8. How should you protect the value of your savings? 9. Why do banks pay interest? 10. What are “reserve requirements?” 11. What are the reasons we put our savings in banks? 12. What are Savings Bonds and what are their advantages? 13. How can you earn a return from stocks? (2 ways) 14. Describe the advantages and disadvantages of mutual funds. 15. What are the disadvantages of investing in real estate and art? 16. Why is individual savings important to the national economy? 17. What are the perils of a low national savings rate? 18. What explanation do economists offer for the nations low savings rate?
  • 102. Unit 4, Activity 4, Simple Interest Blackline Masters, Financial Math Page 100 Louisiana Comprehensive Curriculum, Revised 2008 When you deposit money in a savings account, you are permitting the bank to use the money. The amount you earn for permitting the bank to use your money is called interest. The principal is the amount of money earning interest. The annual interest rate is the percent of the principal that you earn as interest based on one year. 1. Alice Tsongas deposited $600 in a new savings account at Bradinton Savings and Loan Association. No other deposits or withdrawals were made. After 3 months the interest was computed at an annual interest rate of 1½ %. How much simple interest did Alice’s money earn? 2. Henry Bonnacio deposited $1,000 in a new savings account at First National Bank. He made no other deposits or withdrawals. After 6 months the interest was computed at an annual rate of 2½ %. How much simple interest did Henry’s money earn? 3. On June 1, Elena Moore deposited $610 in a savings account at Metro Savings and Loan Association. At the end of November her interest was computed at an annual interest rate of 1.25%. How much simple interest did Elena’s money earn? 4. Wu Chen deposited $819.41 in a savings account at Suburban Trust on May 1. At the end of July his interest was computed at an annual rate of 2%. How much did Wu have in his savings account after interest was paid? 5. On April 1, Peter Weber deposited a refund check for $368.94 in a savings account at Northern Savings Trust. At the end of December the interest was computed at an annual rate of 1¾ %. How much was in Mr. Weber’s savings account after interest was calculated? 6. On March 31, you opened a savings account at Main Street Savings Bank with a deposit of $817.25. At the end of October the interest was computed at an annual rate of 0.65% and added to the balance in your account. a. How much simple interest did your money earn? b. What was your new balance? 7. On February 1, the balance in your account was $516.81. On July 1, you deposit $310.90. Your bank pays 1.25% interest. a. How much interest have you earned on July 1? b. What is your balance, including your deposit, on July 1? c. How much interest have you earned on November 1? d. What is your balance on November 1? 8. On July 1 of last year, your balance was $229.46. On September 1, you deposited $200. On February 1 of this year, you deposited $312.50. Your bank pays 1¼ % interest. What is the balance in your account on July 1 of this year? 1. 2. 3. 4. 5. 6.a. b. 7.a. b. c. d. 8
  • 103. Unit 4, Activity 4, Simple Interest with Answers Blackline Masters, Financial Math Page 101 Louisiana Comprehensive Curriculum, Revised 2008 1. Alice Tsongas deposited $600 in a new savings account at Bradinton Savings and Loan Association. No other deposits or withdrawals were made. After 3 months the interest was computed at an annual interest rate of 1½ %. How much simple interest did Alice’s money earn? 2. Henry Bonnacio deposited $1,000 in a new savings account at First National Bank. He made no other deposits or withdrawals. After 6 months the interest was computed at an annual rate of 2½ %. How much simple interest did Henry’s money earn? 3. On June 1, Elena Moore deposited $610 in a savings account at Metro Savings and Loan Association. At the end of November her interest was computed at an annual interest rate of 1.25%. How much simple interest did Elena’s money earn? 4. Wu Chen deposited $819.41 in a savings account at Suburban Trust on May 1. At the end of July his interest was computed at an annual rate of 2%. How much did Wu have in his savings account after interest was paid? 5. On April 1, Peter Weber deposited a refund check for $368.94 in a savings account at Northern Savings Trust. At the end of December the interest was computed at an annual rate of 1¾ %. How much was in Mr. Weber’s savings account after interest was calculated? 6. On March 31, you opened a savings account at Main Street Savings Bank with a deposit of $817.25. At the end of October the interest was computed at an annual rate of 0.65% and added to the balance in your account. a. How much simple interest did your money earn? b. What was your new balance? 7. On February 1, the balance in your account was $516.81. On July 1, you deposit $310.90. Your bank pays 1.25% interest. a. How much interest have you earned on July 1? b. What is your balance, including your deposit, on July 1? c. How much interest have you earned on November 1? d. What is your balance on November 1? 8. On July 1 of last year, your balance was $229.46. On September 1, you deposited $200. On February 1 of this year, you deposited $312.50. Your bank pays 1¼ % interest. What is the balance in your account on July 1 of this year? 1. $2.25 2. $12.50 3. $3.82 4. $823.51 5. $373.78 6.a. $3.10 b. $820.35 7.a. $2.69 b. $830.40 c. $3.46 d. $833.86 8. $748.56
  • 104. Unit 4, Activity 5, Compound Interest Practice Blackline Masters, Financial Math Page 102 Louisiana Comprehensive Curriculum, Revised 2008 Task: 1. Solve the following problems, on your own paper, show all your work. The procedure to use the simple interest formula to find compound interest is: 1. Find interest1 for the first period. 2. Add interest1 to balance, resulting in new balance1. 3. Find interest2 for the second period with new balance1. 4. Add interest2 to new balance1, resulting in new balance2. 5. Continue 2-step cycle for the total number of interest periods. Savings Account Principal Annual Interest Rate Interest Period Amount After: 1 $600 2% Quarterly Six months 2 $1,100 1.75% Quarterly Two quarters 3 $900 1.125 % Semiannually 1 year 4 $2,745.29 .75% Quarterly 1 year 5 $2,360 1 ½ % Monthly 1 quarter 6 $4,400 ¾ % Quarterly 1 year 7 $11,000 2.04% Annually 3 years 8 $3,625 1 ¼ % Semiannually 1 ½ years
  • 105. Unit 4, Activity 5, Compound Interest Practice with Answers Blackline Masters, Financial Math Page 103 Louisiana Comprehensive Curriculum, Revised 2008 Savings Account Principal Annual Interest Rate Interest Period Amount After: Answers 1 $600 2% Quarterly Six months $606.02 2 $1,100 1.75% Quarterly Two quarters $1,109.64 3 $900 1.125 % Semiannually 1 year $910.72 4 $2,745.29 .75% Quarterly 1 year $2,765.95 5 $2,360 1 ½ % Monthly 1 quarter $2,368.86 6 $4,400 ¾ % Quarterly 1 year $4,433.10 7 $11,000 2.04% Annually 3 years $11,687.03 8 $3,625 1 ¼ % Semiannually 1 ½ years $3,693.40
  • 106. Unit 4, Activity 7, Banking Literacy Teaching Plan Blackline Masters, Financial Math Page 104 Louisiana Comprehensive Curriculum, Revised 2008 Teaching Plan: Activity #3 Banking Focus question: How necessary is it for most people to use the services of a bank? Introduction: From the “Getting Started” page, ask the class to access p.2, “Introduction.” Select two students to act as Diane and Joe in the short scene. Subsequently, have students explain their answers to the following questions: • Why do people, such as Diane, believe that using the services of a bank is unnecessary? • How would you respond to what Diane said? • Which criticism about banks is the most valid? Do you agree with Diane that money orders and check cashers are good substitutes for a checking account? • If you represented Diane’s neighborhood bank, how would you respond to Diane’s criticisms? • What question does the short scene with Diane and Joe raise about the necessity of using banks? (“How necessary is it for most people to use the services of a bank?”) Discussing the activity: Ask the class to access p. 3, “Objectives.” Have students explain their answers to the following: • Based on these objectives, what conclusions do you draw about what we’ll be learning from this activity? • Which of these objectives interests you most? • If we had an expert on banking with us in class today, what questions would you ask about the topic? Ask the class to access p. 4, “Projects.” Explain that in this activity they will be required to complete a project about the topics referred to in the
  • 107. Unit 4, Activity 7, Banking Literacy Teaching Plan Blackline Masters, Financial Math Page 105 Louisiana Comprehensive Curriculum, Revised 2008 objectives. After that, they will have a chance to show what they have learned by creating a set of public service announcements for: 1) radio, 2) television, or 3) newspapers. Have students explain their answers to the following questions: • What do you know about the features of a good radio public service announcement? • What do you know about the features of a good television public service announcement? • What do you know about the features of a good newspaper public service announcement? • Discuss with the class your specifications and expectations for the projects, including deadlines, criteria for grading their public service announcements, and format for acknowledgements. Tell students that most of the information for their projects should come from the tutorials. Divide the class into five groups. Assign each group a different one of the following pages to read: p.9, “Overview of Banking Services;” p.10, “Savings Products;” p.11, “Checking Accounts;” p.12, “The Unbanked;” and p.5, “More Information About Banking.” After completing their readings, have students explain their answers to the following: • Describe what you found on the page(s) you read. • What did you learn about the topics from your reading? • What other questions do you have about the project? Summary: Ask students to explain their answers about the following question: • What do you hope to learn by completing this project?
  • 108. Unit 4, Activity 7, Banking Literacy Tasks Blackline Masters, Financial Math Page 106 Louisiana Comprehensive Curriculum, Revised 2008 Names: In groups of 3 to 5, complete the following task: 1. Goto: http://www.ny.frb.org/education/finlitaction.html, choose Activity #3, Banking 2. This is a project based learning activity. In this activity you will read through the 12 pages of this online lesson. Follow all the links provided, investigate where questions are asked and fully develop your group’s understanding of consumer banking. 3. Create an answer document on a word processor to compile each series of answers for the questions from the website. Name the document using the first names of each of the group members with no spaces or comas. 4. As you read through each of the links, answer each set of questions on a page in your document. You should copy and paste the question from the webpage into your document and then provide an answer. All questions should be in black font and answers in blue font. 5. In addition to answering all questions from the web pages, each group will produce two PUBLIC SERVICE ANNOUNCEMENTS using information gathered during your investigation. 6. PUBLIC SERVICE ANNOUNCEMENTS required topics: a. Overview of personal banking services. i. Create a newspaper advertisement to highlight the services offered by your bank. Be accurate, be concise, and be creative. Prepare your advertisement on a blank 8½ by 11 sheet of paper. b. Don’t be “Unbanked.” i. Create a radio commercial trying to convince people that choose to not use a bank to come into your bank for a look around and explanation of services. Use the voice recorder in windows to record your radio message of between 55 and 65 seconds. Turn in your answer document and radio commercial on computer disk or flash drive.
  • 109. Unit 4, General Assessment, Time Value of Money Scoring Rubric Blackline Masters, Financial Math Page 107 Louisiana Comprehensive Curriculum, Revised 2008 Time Value of Money Essay Name: Teacher: Date Submitted: Title of Work: Criteria Points 1 2 3 4 Organization Sequence of information is difficult to follow. Reader has difficulty following work because student jumps around. Student presents information in logical sequence which reader can follow. Information in logical, interesting sequence which reader can follow. ____ Content Knowledge Student does not have grasp of information; student cannot answer questions about subject. Student is uncomfortable with content and is able to demonstrate basic concepts. Student is at ease with content, but fails to elaborate. Student demonstrates full knowledge (more than required). ____ Grammar and Spelling Work has four or more spelling errors and/or grammatical errors. Presentation has three misspellings and/or grammatical errors. Presentation has no more than two misspellings and/or grammatical errors. Presentation has no misspellings or grammatical errors. ____ Neatness Work is illegible. Work has three or four areas that are sloppy. Work has one or two areas that are sloppy. Work is neatly done. ____ References Work displays no references. Work does not have the appropriate number of required references. Reference section was completed incorrectly Work displays the correct number of references, written correctly. ____ Total----> ____ Comments: Powered by TeAch-nology.com- The Web Portal For Educators! (www.teach-nology.com)
  • 110. Unit 4, General Assessment, Test Blackline Masters, Financial Math Page 108 Louisiana Comprehensive Curriculum, Revised 2008 1. For the savings account passbook shown below, find the balance after each transaction and write it in the balance column. Trans-Louisiana School Bank Savings Account Passbook Date Withdrawal Deposit Interest Balance 1/2/08 827.30 1/15/08 135.00 2/9/08 75.00 3/26/08 63.70 4/1/08 13.44 5/7/08 110.00 6/12/08 100.00 6/26/08 80.17 7/1/08 15.67 2. Figure the interest for two periods for each problem. Round your answers to the nearest cent. Write the total interest accumulated over the two periods in the table. Account Balance Annual Rate Of Interest Interest Period Amount of Interest $1,128.56 4.5% Quarterly $669.91 5 ¾ % Semiannual $271.58 7 ¼ % Monthly $742.00 5% Quarterly $813.92 6.025% Quarterly 3. Calculate the simple interest $2,345.19 would earn in 12 months at 4.375% APR. Compare that to how much compound interest the same amount of money would earn in the same period when compounded quarterly. Which interest calculating method pays more? How much more?
  • 111. Unit 4, General Assessment, Test Blackline Masters, Financial Math Page 109 Louisiana Comprehensive Curriculum, Revised 2008 4. Find the interest and balance for each date listed in each savings account. Write your answers in the table. Interest is compounded quarterly on January 2, April 1, July 1, and October 1 of each year. A. Annual Interest Rate: 7% Date Interest Balance Oct 1 $600 Jan 2 Apr 1 Jul 1 B. Annual Interest Rate: 6 ½ % Date Interest Balance Apr 1 $550 Jul 2 Oct 1 Jan 2 Apr 1 C. Annual Interest Rate: 5 ¼ % Date Interest Balance Jul 1 $1,400.00 Jan 2 Jul 1 Jan 2 5. If you deposit $1,000 in a savings account paying 3.25% APR, compounded quarterly, how much would you have in 5 years? No other deposits or withdrawals were made over the period. Show all work.
  • 112. Unit 4, General Assessment, Test with Answers Blackline Masters, Financial Math Page 110 Louisiana Comprehensive Curriculum, Revised 2008 1. For the savings account passbook shown below, find the balance after each transaction and write it in the balance column. Trans-Louisiana School Bank Savings Account Passbook Date Withdrawal Deposit Interest Balance 1/2/08 827.30 1/15/08 135.00 962.30 2/9/08 75.00 887.30 3/26/08 63.70 951.00 4/1/08 13.44 964.44 5/7/08 110.00 1,074.44 6/12/08 100.00 974.44 6/26/08 80.17 1,054.61 7/1/08 15.67 1,070.28 2. Figure the interest for two periods for each problem. Round your answers to the nearest cent. Write the total interest accumulated over the two periods in the table. Account Balance Annual Rate Of Interest Interest Period Amount of Interest $1,128.56 4.5% Quarterly $25.54 $669.91 5 ¾ % Semiannual $39.07 $271.58 7 ¼ % Monthly $3.29 $742.00 5% Quarterly $18.67 $813.92 6.025% Quarterly $24.70 3. Calculate the simple interest $2,345.19 would earn in 12 months at 4.375% APR. Compare that to how much compound interest the same amount of money would earn in the same period when compounded quarterly. Which interest calculating method pays more? How much more? Simple: $102.60 Compound interest pays $1.69 more. Compound: $104.29
  • 113. Unit 4, General Assessment, Test with Answers Blackline Masters, Financial Math Page 111 Louisiana Comprehensive Curriculum, Revised 2008 4. Find the interest and balance for each date listed in each savings account. Write your answers in the table. Interest is compounded quarterly on January 2, April 1, July 1, and October 1 of each year. A. Annual Interest Rate: 7% Date Interest Balance Oct 1 $600 Jan 2 10.50 610.50 Apr 1 10.68 621.18 Jul 1 11.06 643.11 B. Annual Interest Rate: 6 ½ % Date Interest Balance Apr 1 $550 Jul 2 8.94 558.94 Oct 1 9.08 568.02 Jan 2 9.23 577.25 Apr 1 9.38 586.63 C. Annual Interest Rate: 5 ¼ % Date Interest Balance Jul 1 $1,400.00 Jan 2 18.62 1,437.00 Jul 1 19.11 1,474.97 Jan 2 19.61 1,513.94 5. If you deposit $1,000 in a savings account paying 3.25% APR, compounded quarterly, how much would you have in 5 years? No other deposits or withdrawals were made over the period. Show all work. The compound interest formula is the best way to solve this problem. P = 1000(1+ .0325/4)^(4*5) = $1,175.68
  • 114. Unit 4, Activity 3, Specific Assessment, A Penny Saved Scoring Rubric Blackline Masters, Financial Math Page 112 Louisiana Comprehensive Curriculum, Revised 2008 A Penny Saved Research Presentation Name: ________________________ Teacher: Date of Presentation: ____________ Title of Work: ___________________ Criteria Points 1 2 3 4 Organization Audience cannot understand presentation because there is no sequence of information. Audience has difficulty following presentation because student jumps around. Student presents information in logical sequence which audience can follow. Student presents information in logical, interesting sequence which audience can follow. ____ Content Knowledge (Points x 5) Student does not have grasp of information; student cannot answer questions about subject. Student is uncomfortable with information and is able to answer only rudimentary questions. Student is at ease with content, but fails to elaborate. Student demonstrates full knowledge (more than required) with explanations and elaboration. ____ Visuals Student used no visuals. Student occasionally used visuals that rarely support text and presentation. Visuals related to text and presentation. Student used visuals to reinforce screen text and presentation. ____ Mechanics Student's presentation had four or more spelling errors and/or grammatical errors. Presentation had three misspellings and/or grammatical errors. Presentation has no more than two misspellings and/or grammatical errors. Presentation has no misspellings or grammatical errors. ____ Delivery Student mumbles, incorrectly pronounces terms, and speaks too quietly for students in the back of class to hear. Student incorrectly pronounces terms. Audience members have difficulty hearing presentation. Student's voice is clear. Student pronounces most words correctly. Student used a clear voice and correct, precise pronunciation of terms. ____ Total----> ____ Teacher Comments: Powered by TeAch-nology.com- The Web Portal For Educators! (www.teach-nology.com)
  • 115. Unit 4, Activity 6, Specific Assessment, Mid-Unit Quiz Blackline Masters, Financial Math Page 113 Louisiana Comprehensive Curriculum, Revised 2008 1. For the savings account passbook shown below, find the balance after each transaction and write it in the balance column. Trans-Louisiana School Bank Savings Account Passbook Date Withdrawal Deposit Interest Balance 2/14/07 1546.78 3/13/07 200.00 3/31/07 11.22 4/15/07 987.65 4/23/07 150.00 7/1/07 15.62 2. Figure the interest for one period for each problem. Round your answers to the nearest cent. Write your answers in the table. Account Balance Annual Rate Of Interest Interest Period Amount of Interest $927.48 4.5% Quarterly $236.91 5 ¾ % Semiannual $692.58 7 ¼ % Monthly 3. Find the interest and balance for each date listed in each savings account. Write your answers in the table. Interest is compounded quarterly on January 2, April 1, July 1, and October 1. A. Annual Interest Rate: 7% Date Interest Balance Oct 1 $500 Jan 2 Apr 1 Jul 1 B. Annual Interest Rate: 5 ¼ % Date Interest Balance Jul 1 $300 Jan 2 Jul 1 Jan 2
  • 116. Unit 4, Activity 6, Specific Assessment, Mid-Unit Quiz with Answers Blackline Masters, Financial Math Page 114 Louisiana Comprehensive Curriculum, Revised 2008 1. For the savings account passbook shown below, find the balance after each transaction and write it in the balance column. Trans-Louisiana School Bank Savings Account Passbook Date Withdrawal Deposit Interest Balance 2/14/07 1546.78 3/13/07 200.00 1,346.78 3/31/07 11.22 1,358.00 4/15/07 987.65 2,345.65 4/23/07 150.00 2,195.65 7/1/07 15.62 2,211.27 2. Figure the interest for one period for each problem. Round your answers to the nearest cent. Write your answers in the table. Account Balance Annual Rate Of Interest Interest Period Amount of Interest $927.48 4.5% Quarterly 10.43 $236.91 5 ¾ % Semiannual 6.81 $692.58 7 ¼ % Monthly 4.18 3. Find the interest and balance for each date listed in each savings account. Write your answers in the table. Interest is compounded quarterly on January 2, April 1, July 1, and October 1. A. Annual Interest Rate: 7% Date Interest Balance Oct 1 $500 Jan 2 8.75 508.75 Apr 1 8.90 517.65 Jul 1 9.06 526.71 B. Annual Interest Rate: 5 ¼ % Date Interest Balance Jul 1 $300 Jan 2 3.99 307.93 Jul 1 4.09 316.06 Jan 2 4.20 324.41 Notice: Skips a quarter each time, calculate 6 times, write answer every other time.
  • 117. Unit 4, Activity 9, Specific Assessment, Compound Interest Assessment Blackline Masters, Financial Math Page 115 Louisiana Comprehensive Curriculum, Revised 2008 Interest that you earn in a savings account during an interest period is added to your account. The new balance is used to calculate the interest for the next interest period. Compound interest is interest earned not only on the original principal but also on the interest earned during previous interest periods. 1. Michael Arthur deposited $2,900 in a new regular savings account that earns 2.5% interest compounded semiannually. He made no other deposits or withdrawals. What was the amount in the account at the end of 1 year? 2. Teresa Marvin deposited $1,950 in a new credit union savings account on the first of a quarter. The principal earns 1.25% interest compounded quarterly. She made no other deposits or withdrawals. What was the amount in her account at the end of 6 years? 3. Ronda Perrin had $5,050 deposited at City National Bank on June 1. The money earns interest at a rate of 1 ¼ % compounded quarterly. What is the amount in the account on March 1 of the following year if no deposits or withdrawals were made? 4. Delbert Renfer deposited $2,400 in a new savings account on March 1. The savings account earns 0.75% interest compounded monthly. How much was in the account on June 1? 5. Jeanne Crawford had $9,675.95 deposited in an account paying 2 ¾ % compounded semiannually. How much would Jeanne have in her account five years later? 6. You deposit $2,500 in a special savings account. The account earns interest at a rate of 0.625% compounded monthly. What amount will be in your account at the end of 5 months if no deposits or withdrawals are made? 7. You deposit $500 in an account paying 0.975% compounded monthly. Two months later you deposit another $500 in the account. What amount will be in your account 6 months from the original investment? 8. Your bank pays 1.925% compounded monthly. You deposit $100 per month. What amount do you have in your account after 5 months if no withdrawals are made? 1. 2. 3. 4. 5. 6. 7. 8.
  • 118. Unit 4, Activity 9, Specific Assessment, Compound Interest Assessment with Answers Blackline Masters, Financial Math Page 116 Louisiana Comprehensive Curriculum, Revised 2008 1. Michael Arthur deposited $2,900 in a new regular savings account that earns 2.5% interest compounded semiannually. He made no other deposits or withdrawals. What was the amount in the account at the end of 1 year? 2. Teresa Marvin deposited $1,950 in a new credit union savings account on the first of a quarter. The principal earns 1.25% interest compounded quarterly. She made no other deposits or withdrawals. What was the amount in her account at the end of 6 years? 3. Ronda Perrin had $5,050 deposited at City National Bank on June 1. The money earns interest at a rate of 1 ¼ % compounded quarterly. What is the amount in the account on March 1 of the following year if no deposits or withdrawals were made? 4. Delbert Renfer deposited $2,400 in a new savings account on March 1. The savings account earns 0.75% interest compounded monthly. How much was in the account on June 1? 5. Jeanne Crawford had $9,675.95 deposited in an account paying 2 ¾ % compounded semiannually. How much would Jeanne have in her account five years later? 6. You deposit $2,500 in a special savings account. The account earns interest at a rate of 0.625% compounded monthly. What amount will be in your account at the end of 5 months if no deposits or withdrawals are made? 7. You deposit $500 in an account paying 0.975% compounded monthly. Two months later you deposit another $500 in the account. What amount will be in your account 6 months from the original investment? 8. Your bank pays 1.925% compounded monthly. You deposit $100 per month. What amount do you have in your account after 5 months if no withdrawals are made? 1. $2,972.95 2. $2,101.63 3. $5,097.49 4. $2,404.50 5. $11,091.81 6. $2,506.50 7. $1,004.07 8. $502.40
  • 119. Unit 5, Activities 1 & 2, Sales Receipt Blackline Masters, Financial Math Page 117 Louisiana Comprehensive Curriculum, Revised 2008 Name______________________ Task: 1. Bring to class at least 5 sales receipts from the last two weeks. 2. Use the templates below to transfer the sales information from your receipts onto the template. 3. Not all of the receipts will contain all of the information; complete the templates as completely as possible. 4. Calculate the sales tax percentage on each of the sales receipt templates. Seller Address & Phone Buyer Info Date: Sold by: Cash Charge Delivery Quantity Description Unit Price Amount Subtotal Sales TaxThank You For shopping with us. Total Sales Tax % ___________________ Seller Address & Phone Buyer Info Date: Sold by: Cash Charge Delivery Quantity Description Unit Price Amount Subtotal Sales TaxThank You For shopping with us. Total Sales Tax % ___________________
  • 120. Unit 5, Activities 1 & 2, Sales Receipt Blackline Masters, Financial Math Page 118 Louisiana Comprehensive Curriculum, Revised 2008 Seller Address & Phone Buyer Info Date: Sold by: Cash Charge Delivery Quantity Description Unit Price Amount Subtotal Sales TaxThank You For shopping with us. Total Sales Tax % ___________________ Seller Address & Phone Buyer Info Date: Sold by: Cash Charge Delivery Quantity Description Unit Price Amount Subtotal Sales TaxThank You For shopping with us. Total Sales Tax % ___________________ Seller Address & Phone Buyer Info Date: Sold by: Cash Charge Delivery Quantity Description Unit Price Amount Subtotal Sales TaxThank You For shopping with us. Total Sales Tax % ___________________
  • 121. Unit 5, Activity 3, Spreadsheet Task Blackline Masters, Financial Math Page 119 Louisiana Comprehensive Curriculum, Revised 2008 Task: 1. Use a spreadsheet (Excel®) to create an auto-calculating sales invoice. 2. Your invoice should resemble the example below. 3. Inputs: a. Sold to b. Quantity c. Description d. Unit price 4. Outputs: a. Date should auto input b. Item amount c. Subtotal d. Sales tax (Use 9%) e. Total 5. Create an invoice with five rows for inputting items sold. State Electronics 14 State Road Anytown, Louisiana 77777 318-555-1234 Sold To: Date: 9/18/2005 Quantity Description Unit Price Amount Subtotal Sales Tax – 9%Thank You For shopping with us. Total 6. When spreadsheet is complete and all formulas work, input the following items onto the receipt. Sold To: George Rodriguez Date: Quantity Description Unit Price Amount 2 Louisiana Instruments Financial Calculator 38.52 3 Teen’s Finance Quick Reference Cards 3.19 Subtotal Sales Tax – 9%Thank You For shopping with us. Total 7. Save spreadsheet onto computer disk or flash drive using your name as the file name.
  • 122. Unit 5, Activity 4, Unit Price Comparison Blackline Masters, Financial Math Page 120 Louisiana Comprehensive Curriculum, Revised 2008 Name___________________ Task: 1. Use the following table to compare prices. 2. Go to a local supermarket and find two different sizes of each item specified, preferably of the same type of item. 3. Record the brand/description, size and price for each item. 4. Do not complete the unit price and check for best buy columns. 5. Bring the completed form to class tomorrow. Item Brand/Description Size (ounces) Price Unit Price Check for best buy Toothpaste Dog Food Tomato Paste Bar soap Bag of Rice Can corn
  • 123. Unit 5, Activity 5, Counting Change Blackline Masters, Financial Math Page 121 Louisiana Comprehensive Curriculum, Revised 2008 Making Change: Bottom to Top: To make change, count up to the next nickel, dime, quarter and dollar until the amount tendered is reached. Example: Purchase price: $3.27 Amount tendered: $10.00 Change received: 3 pennies >>>> = $3.30 2 dimes >>>> = $3.50 2 quarters >>>> = $4.00 1 dollar >>>> = $5.00 1 $5 dollar >>>> = $10.00 Directions: Show, for each piece of currency, the quantity received as change. Use the least amount of coins and bills possible. Purchase 1¢ 5¢ 10¢ 25¢ $1 $5 $10 $20 Tendered $1.29 $5 $15.48 $20 $2.98 $20 $3.59 $10 $11.12 $15 $18.83 $20 $22.41 $40 $87.71 $100 $30.03 $40 Making Change: Loose Coins Given: The amount tendered may contain loose coins so that fewer coins and bills are returned in the change. Example: Purchase price: $3.27 Amount tendered: $10.02 The 2¢ “buys” down the purchase price to $3.25. Make change from that point. Change received: 3 quarters >>>> = $4.00 1 dollar >>>> = $5.00 1 $5 dollar >>>> = $10.00 Purchase 1¢ 5¢ 10¢ 25¢ $1 $5 $10 $20 Tendered $1.29 $5.04 $5.48 $20.03 $22.08 $20.08 $3.57 $10.02 $11.12 $15.02 $8.83 $20.03 $22.41 $50.01 $87.74 $100.04 $30.03 $40.03
  • 124. Unit 5, Activity 5, Counting Change with Answers Blackline Masters, Financial Math Page 122 Louisiana Comprehensive Curriculum, Revised 2008 Making Change: Bottom to Top: Directions: Show, for each piece of currency, the quantity received as change. Use the least amount of coins and bills possible. Purchase 1¢ 5¢ 10¢ 25¢ $1 $5 $10 $20 Tendered $1.29 1 2 2 3 $5 $15.48 2 2 4 $20 $2.98 2 2 1 1 $20 $3.59 1 1 1 1 1 1 $10 $11.12 3 1 3 3 $15 $18.83 2 1 1 1 $20 $22.41 4 1 2 2 1 1 $40 $87.71 4 1 2 1 $100 $30.03 2 2 3 4 1 $40 Making Change: Loose Coins Given: Purchase 1¢ 5¢ 10¢ 25¢ $1 $5 $10 $20 Tendered $1.29 3 3 $5.04 $5.48 1 2 1 1 $21.03 $22.08 3 1 1 $40.08 $3.57 2 1 1 1 $10.02 $11.12 1 1 3 3 $15.02 $8.83 2 1 1 $20.03 $22.41 1 2 2 1 1 $50.01 $87.74 1 1 2 1 $100.04 $30.03 1 $40.03
  • 125. Unit 5, Activity 9, Career Update Blackline Masters, Financial Math Page 123 Louisiana Comprehensive Curriculum, Revised 2008 Task: 1. Get the Career Expectations BLM (Unit 1, Activity 15) out of your financial plan binder. In this task you will research to update or confirm your previous findings concerning your chosen career. 2. Update the information, as required, using the website below. http://www.careereducationadvisor.com/ (look on the lower left, scroll down, to find career info.) 3. Return the activity sheet to its proper location in your financial plan when complete. 4. Go to: http://www.mapping-your-future.org/MHSS/ Complete the “Ten Steps to Planning for Your Future” contained on this website. Start with the 8th & 9th grade years, click on and follow all of the links provided. Continue until you’ve followed and read each link through the 12th grade. Your knowledge of your chosen career and its education requirements, professional certifications, etc. should be in final form after this activity. Remember: This activity is for your benefit, make the most of it.
  • 126. Unit 5, Activity 11, Bar Graph Blackline Masters, Financial Math Page 124 Louisiana Comprehensive Curriculum, Revised 2008 Task: Use the data presented to create a double bar graph for each set of information given. The horizontal axis will be item names. The vertical axis is dollars. Graph the regular price of an item and the sale price of the same item side-by-side, then move to the next item in the data set. 1. Item Purchased Regular Price Sale Price Wool Sweater $48.95 20% off Socks, Pair $12.58 15% off 2. Item Purchased Regular Price Sale Price Garden hose $33.79 8% off Shovel $22.99 10% off 3. Item Purchased Regular Price Sale Price 2” binder $5.56 20% off Pen Assortment $9.95 7.5% off AAA batteries $7.89 14% off 4. Item Purchased Regular Price Sale Price Desktop computer $699.99 11% off Mousepad $9.99 11% off Speakers $85.00 11% off Flash drive $45.62 11% off Ethernet cable $26.47 11% off
  • 127. Unit 5, Activity 11, Bar Graph with Answers Blackline Masters, Financial Math Page 125 Louisiana Comprehensive Curriculum, Revised 2008 1. 2. 0 10 20 30 40 50 Sweater Socks Regular Sale 0 5 10 15 20 25 30 35 Garden Hose Shovel Regular Sale
  • 128. Unit 5, Activity 11, Bar Graph with Answers Blackline Masters, Financial Math Page 126 Louisiana Comprehensive Curriculum, Revised 2008 3. 4. 0 1 2 3 4 5 6 7 8 9 10 Binder Pens Batteries Regular Sale 0 100 200 300 400 500 600 700 Computer Speakers Cable Regular Sale
  • 129. Unit 5, Activity 12, Earnings vs. Education Blackline Masters, Financial Math Page 127 Louisiana Comprehensive Curriculum, Revised 2008 Education and Earnings Predictions: Questions: Clarifications: Summary: Was the prediction confirmed? Yes No Details:
  • 130. Unit 5, Activity 12, Earnings vs. Education Blackline Masters, Financial Math Page 128 Louisiana Comprehensive Curriculum, Revised 2008 Synthetic Earnings Predictions: Questions: Clarifications: Summary: Was the prediction confirmed? Yes No Details:
  • 131. Unit 5, Activity 12, Earnings vs. Education Blackline Masters, Financial Math Page 129 Louisiana Comprehensive Curriculum, Revised 2008 Sex, Education and Earnings Predictions: Questions: Clarifications: Summary: Was the prediction confirmed? Yes No Details:
  • 132. Unit 5, Activity 12, Earnings vs. Education Blackline Masters, Financial Math Page 130 Louisiana Comprehensive Curriculum, Revised 2008 Race and Hispanic Origin, Education and Earnings Predictions: Questions: Clarifications: Summary: Was the prediction confirmed? Yes No Details:
  • 133. Unit 5, General Assessments, LRR Rubric Blackline Masters, Financial Math Page 131 Louisiana Comprehensive Curriculum, Revised 2008 Listening & Reading & Responding Name: _____________________ Teacher: M. Teacher Date: ______________________ Title of Work: ______________ Skills Criteria Points 1 2 3 4 Listener focuses attention on speaker. None of the Time Some of the Time Most of the Time All of the Time ____ Listener responds appropriately to comedic and/or dramatic moments of the reading. Demonstrated by body language, laughter, and/or silence. None of the Time Some of the Time Most of the Time All of the Time ____ At the conclusion of the reading, the listener is able to: Answer factual questions such as names of characters, settings within the story, and the theme of the story. Summarize the beginning, middle, and end of the story. Reveal the sequence of event, providing details on dialogue, and motivation of characters. Retell the entire story with a sense of value that relives the tale for other listeners. ____ Total Points ____ Teacher Comments: Powered by TeAch-nology.com- The Web Portal For Educators! (www.teach-nology.com)
  • 134. Unit 5, General Assessments, Test Blackline Masters, Financial Math Page 132 Louisiana Comprehensive Curriculum, Revised 2008 Directions: Read the following situation and answer the questions in paragraph form. Support your answers with mathematical facts. Produce a pie chart for each calculation method. The new QuickCo notebook computers are on sale for 20% off, and the sales tax rate is 9 ¼ %. Suppose the selling price of a notebook computer could be calculated in either of the following two ways: 1. Deduct 20% from the regular price and then add 9 ¼ % tax to this amount. 2. Add 9 ¼ % tax to the regular price and then deduct 20% of the total. Which of the two methods would you choose if you were: 1. The customer? 2. The merchant? 3. The tax collector?
  • 135. Unit 5, General Assessments, Test with Answers Blackline Masters, Financial Math Page 133 Louisiana Comprehensive Curriculum, Revised 2008 Suppose the notebook computer cost $1000. (student answers will vary) Case 1: Deduct 20% from the regular price and then add 9 ¼ % tax to this amount. $1000 * .8 = $800 Sale price of computer $800 * .0925 = $74 Sales Tax $800 + $74 = $874 Total selling price with tax Case 2: Add 9 ¼ % tax to the regular price and then deduct 20% of the total. $1000 * .0925 = $92.50 Sales Tax $1000 + $92.50 = $1,092.50 Computer with tax added $1,092.50 * .8 = $874 Total selling price after rebate Customer: The customer doesn’t care, he/she pays the same price either way. Merchant: The merchant prefers #1 because of less sales tax, which is often matched by the merchant. Tax Collector: The tax collector prefers #2 because it yields the most in tax revenue. Test adopted from an item presented in the National Council Of Teachers Of Mathematics, Are You Sure About That?, September 2004.
  • 136. Unit 5, Specific Assessments, Activity 1, Sales Tax Research Rubric Blackline Masters, Financial Math Page 134 Louisiana Comprehensive Curriculum, Revised 2008 Sales Tax Research Name: ________________________ Teacher: M. Teacher 4 3 2 1 Introduction/ Topic Student(s) properly generate questions and or problems around a topic. Student(s) generate questions and or problems. Student(s) require prompts to generate questions and or problems. Questions or problems are teacher generated. ____ Conclusions Reached Numerous detailed conclusions are reached from the evidence offered. Several detailed conclusions are reached from the evidence offered. Some detailed conclusions are reached from the evidence offered. A conclusion is made from the evidence offered. ____ Information Gathering Information is gathered from multiple electronic and non- electronic sources and cited properly. Information is gathered from multiple electronic and non-electronic sources. Information is gathered from limited electronic and non-electronic sources. Information is gathered from non-electronic or electronic sources only. ____ Summary Paragraph Well organized, demonstrates logical sequencing and sentence structure. Well organized, but demonstrates illogical sequencing or sentence structure. Well organized, but demonstrates illogical sequencing and sentence structure. Weakly organized. ____ Punctuation, Capitalization, & Spelling Punctuation and capitalization are correct. There is one error in punctuation and/or capitalization. There are two or three errors in punctuation and/or capitalization. There are four or more errors in punctuation and/or capitalization. ____ Total----> ____ Teacher Comments: Powered by TeAch-nology.com- The Web Portal For Educators! (www.teach-nology.com)
  • 137. Unit 5, Specific Assessments, Activity 3, Receipt Spreadsheet Rubric Blackline Masters, Financial Math Page 135 Louisiana Comprehensive Curriculum, Revised 2008 Rubric generated at: http://rubistar.4teachers.org/index.php CATEGORY All information was correct. 5pts At least 80% of the information was correct. 4pts At least 70% of the information was correct. 2pts Less than 70% of the information was correct. 1pt Information Format Formula Save Print
  • 138. Unit 5, Specific Assessments, Activity 5, Graphing Calculator Rubric Blackline Masters, Financial Math Page 136 Louisiana Comprehensive Curriculum, Revised 2008 Assessed Effort: Create an ordered table using a graphing calculator 4 Successfully uses the features of graphing calculator to input the data and create a table with complete attention to detail, consistency, and overall appearance. 3 Successfully uses the features of graphing calculator to input the data and create a table with acceptable attention to detail, consistency, and overall appearance. 2 Uses the features of graphing calculator to input the data and create a table with some attention to detail, consistency, and overall appearance 1 Uses the features of graphing calculator to input the data and create a table; lacks attention to detail, consistency, and/or overall appearance. Substantial Accomplishment: Create an ordered table using a graphing calculator 4 Very skillfully creates graphing calculator solutions with attention to detail, and consistency. 3 Skillfully creates graphing calculator solutions with attention to detail, consistency. 2 Creates graphing calculator solutions, but it may lack complex formatting, attention to detail, and/or consistency. 1 Creates graphing calculator solutions that have formatting, consistency, or attention to detail.
  • 139. Unit 5, Specific Assessments, Activity 11, Graphing Quiz Blackline Masters, Financial Math Page 137 Louisiana Comprehensive Curriculum, Revised 2008 Three rival computer stores are having back-to-school sales. They each sell the laptop computer you’ve had your eye on, and you’d like to take advantage of the sale. AJ’s Compuwarehouse: Supermacro 1000 computer, regularly $1,599. On sale for 30% off plus free 2- year warranty. Computer Junction: Supermacro 1000 computer, regularly $1,467. On sale for 40% off with the 2-year warranty selling for $135. Benny’s Electronics: Supermacro 1000 computer, regularly $1,499 and the 2-year warranty is regularly $175. Both the computer and the warranty are on sale for 25% off, plus there is a rebate of $250. Directions. Step One: Use the information in the above table to complete the sales receipts below. The sales tax rate in your area is 8 ¾ %. Prices should reflect the ongoing sale. Be sure to include the warranty on the receipt; you want the insurance the warranty provides. AJ’s Compuwarehouse School-ready Student Date: Sold by: Cash Charge Delivery Quantity Description Unit Price Amount Subtotal Sales TaxThank You For shopping with us. Total Computer Junction School-ready Student Date: Sold by: Cash Charge Delivery Quantity Description Unit Price Amount Subtotal Sales TaxThank You For shopping with us. Total
  • 140. Unit 5, Specific Assessments, Activity 11, Graphing Quiz Blackline Masters, Financial Math Page 138 Louisiana Comprehensive Curriculum, Revised 2008 Benny’s Electronics School-ready Student Date: Sold by: Cash Charge Delivery Quantity Description Unit Price Amount Subtotal Sales TaxThank You For shopping with us. Total Step Two: Use the receipt data to create a pie chart for each sales receipt. AJ’s Compuwarehouse: Computer Junction: Benny’s Electronics:
  • 141. Unit 5, Specific Assessments, Activity 11, Graphing Quiz Blackline Masters, Financial Math Page 139 Louisiana Comprehensive Curriculum, Revised 2008 Step Three: Use the sale data and create a double bar graph for each store. Step Four: At which store would you buy and why?
  • 142. Unit 5, Specific Assessments, Activity 11, Graphing Quiz with Answers Blackline Masters, Financial Math Page 140 Louisiana Comprehensive Curriculum, Revised 2008 Step One. AJ’s Compuwarehouse School-ready Student Date: Sold by: Cash Charge Delivery Quantity Description Unit Price Amount 1 Supermacro 1000 1,119.30 1 2-year warranty Free Subtotal 1,119.30 Sales Tax 97.94Thank You For shopping with us. Total 1,217.24 Computer Junction School-ready Student Date: Sold by: Cash Charge Delivery Quantity Description Unit Price Amount 1 Supermacro 1000 880.20 1 2-year warranty 135 Subtotal 1,015.20 Sales Tax 88.83Thank You For shopping with us. Total 1,104.03 Benny’s Electronics School-ready Student Date: Sold by: Cash Charge Delivery Quantity Description Unit Price Amount 1 Supermacro 1000 1,124.25 1 2-year warranty 131.25 Subtotal 1255.50 Sales Tax 109.86Thank You For shopping with us. Total 1,365.36
  • 143. Unit 5, Specific Assessments, Activity 11, Graphing Quiz with Answers Blackline Masters, Financial Math Page 141 Louisiana Comprehensive Curriculum, Revised 2008 Step Two: AJ's Compuwarehouse Computer 92% Warranty 0% Tax 8% Benny's Electronics Computer 82% Warranty 10% Tax 8% Computer Junction Computer 80% Warranty 12% Tax 8%
  • 144. Unit 5, Specific Assessments, Activity 11, Graphing Quiz with Answers Blackline Masters, Financial Math Page 142 Louisiana Comprehensive Curriculum, Revised 2008 Step Three: 0 200 400 600 800 1000 1200 1400 1600 AJ's Comp Junc Benny's Regular Sale Step Four: At which store would you buy and why? Answers will vary.
  • 145. Unit 6, Activity 1, Vocabulary Chart Blackline Masters, Financial Math Page 143 Louisiana Comprehensive Curriculum, Revised 2008 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. Word + or √ or - Example Definition 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
  • 146. Unit 6, Activity 1, Credit Knowledge Blackline Masters, Financial Math Page 144 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 147. Unit 6, Activity 2, Credit Card Statement Blackline Masters, Financial Math Page 145 Louisiana Comprehensive Curriculum, Revised 2008 Account Number: 1111-2222-3333- 4444Credit Card Statement Name: Boudreaux Dontired Statement Date: 4/14/2008 Payment Due: 5/13/2008 Billing Period: 3/14/08 – 4/14/08 Credit Line: $500.00 Credit Available: $309.14 New Balance: $190.86 Minimum Payment Due: $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: Purchases: Cash Advances: Payments: Credits: Finance Charge: Late Charge: NEW BALANCE +169.38 +67.74 + -50.00 - +4.10 + 190.86 Current Amount Due: Amount Past Due: Amount Over Credit Limit: Minimum Payment Due: 190.86 20.00 Periodic Rate: Annual Percentage Rate: Purchase: 2% 24% Cash Advance 3% 36% Customer Service, call: 1-800-###-#### 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.
  • 148. Unit 6, Activity 5, Credit Card Application Blackline Masters, Financial Math Page 146 Louisiana Comprehensive Curriculum, Revised 2008 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. Key Point Card 1 Card name: Card 2 Card name: Annual percentage rate (APR) for purchases, list all Other APRs, list all Cash Advance APR: Balance Transfer APR: Default APR: Cash Advance: Introductory: 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
  • 149. Unit 6, Activity 8, Installment Loan with Tables Blackline Masters, Financial Math Page 147 Louisiana Comprehensive Curriculum, Revised 2008 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 Annual Percentage RateTerm in months 8% 9% 10.5% 11.5% 12% 14% 15% 16% 17% 18% 24% 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%.
  • 150. Unit 6, Activity 8, Installment Loan with Tables with Answers Blackline Masters, Financial Math Page 148 Louisiana Comprehensive Curriculum, Revised 2008 Problem Monthly Payment Total Amount Repaid Total Finance Charge 1. Installment loan of $2000. 12 monthly payments. APR is 18%. $183.36 $2,200.32 $200.32 2. Installment loan of $2000. 24 monthly payments. APR is 18%. $99.85 $2,396.40 $396.40 3. Installment loan of $2000. 24 monthly payments. APR is 11.5%. $93.68 $2,248.08 $248.08 4. Installment loan of $2000. 12 monthly payments. APR is 8%. $173.98 $2,087.76 $87.76 5. Installment loan of $10000. 24 monthly payments. APR is 18%. $499.24 $11,981.76 $1,981.76 6. Installment loan of $10000. 24 monthly payments. APR is 12%. $470.73 $11,297.52 $1,297.52 7. Installment loan of $10000. 24 monthly payments. APR is 8%. $452.27 $10,854.48 $854.48 8. Installment loan of $25000. 48 monthly payments. APR is 18%. $734.37 $35,249.76 $10,249.76 9. Installment loan of $25000. 48 monthly payments. APR is 8%. $610.32 $29,295.36 $4,295.36 10. Installment loan of $35000. 60 monthly payments. APR is 9%. $726.54 $43,592.40 $8,592.40
  • 151. Unit 6, Activity 9, Repayment Simulation Blackline Masters, Financial Math Page 149 Louisiana Comprehensive Curriculum, Revised 2008 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 Payment # Monthly Payment Amount for interest Amount for principal New 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.
  • 152. Unit 6, Activity 9, Repayment Simulation with Answers Blackline Masters, Financial Math Page 150 Louisiana Comprehensive Curriculum, Revised 2008 Solution table. Repayment Schedule for CD player loan Payment # Monthly Payment Amount for interest Amount for principal New 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
  • 153. Unit 6, Activity 10, Electronic Loan Calculation Blackline Masters, Financial Math Page 151 Louisiana Comprehensive Curriculum, Revised 2008 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%.
  • 154. Unit 6, Activity 10, Electronic Loan Calculation with Answers Blackline Masters, Financial Math Page 152 Louisiana Comprehensive Curriculum, Revised 2008 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 $2000.00 borrowed for 12 months at 18% Payment Number 1 2 3 4 5 6 7 8 9 10 11 12 Payment ($) 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 Paid ($) 153.36 155.66 158.00 160.37 162.77 165.21 167.69 170.21 172.76 175.35 177.98 180.65 Interest Paid ($) 30.00 27.70 25.36 22.99 20.59 18.15 15.67 13.15 10.60 8.01 5.38 2.71 Total Interest ($) 30.00 57.70 83.06 106.06 126.65 144.80 160.47 173.62 184.22 192.23 197.61 200.32 Balance ($) 1846.64 1690.98 1532.98 1372.62 1209.85 1044.64 876.95 706.74 533.98 358.63 180.65 0.00
  • 155. Unit 6, Activity 12, Loan What-If Blackline Masters, Financial Math Page 153 Louisiana Comprehensive Curriculum, Revised 2008 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 Amount Interest Rate Term in years Fees Financed Amount Financed Payment Total 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.
  • 156. Unit 6, Activity 12, Loan What-If Blackline Masters, Financial Math Page 154 Louisiana Comprehensive Curriculum, Revised 2008 First Choice. Why? Second Choice. Why? Third Choice. Why? Scenario 1 Scenario 2 Scenario 3 Scenario 4
  • 157. Unit 6, Activity 12, Loan What-If with Answers Blackline Masters, Financial Math Page 155 Louisiana Comprehensive Curriculum, Revised 2008 Loan Comparison Worksheet Inputs Outputs Loan Amount Interest Rate Term in years Fees Financed Amount Financed Payment Total 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
  • 158. Unit 6, Activity 13, Discussion Guide Blackline Masters, Financial Math Page 156 Louisiana Comprehensive Curriculum, Revised 2008 Your Credit Application Predictions: Questions: Clarifications: Summary: Was the prediction confirmed? Yes No Details:
  • 159. Unit 6, Activity 13, Discussion Guide Blackline Masters, Financial Math Page 157 Louisiana Comprehensive Curriculum, Revised 2008 Your Credit Billing and Electronic Fund Transfer Statements Predictions: Questions: Clarifications: Summary: Was the prediction confirmed? Yes No Details:
  • 160. Unit 6, Activity 13, Discussion Guide Blackline Masters, Financial Math Page 158 Louisiana Comprehensive Curriculum, Revised 2008 Your Debts and Debt Collectors Predictions: Questions: Clarifications: Summary: Was the prediction confirmed? Yes No Details:
  • 161. Unit 6, Activity 13, Discussion Guide Blackline Masters, Financial Math Page 159 Louisiana Comprehensive Curriculum, Revised 2008 Solving Your Credit Problems Predictions: Questions: Clarifications: Summary: Was the prediction confirmed? Yes No Details:
  • 162. Unit 6, General Assessments, Use of Credit Rubric Blackline Masters, Financial Math Page 160 Louisiana Comprehensive Curriculum, Revised 2008 Use of Credit Essay Name: Teacher: Date Submitted: Title of Work: Criteria Points 1 2 3 4 Organization Sequence of information is difficult to follow. Reader has difficulty following work because student jumps around. Student presents information in logical sequence which reader can follow. Information in logical, interesting sequence which reader can follow. ____ Content Knowledge Student does not have grasp of information; student cannot answer questions about subject. Student is uncomfortable with content and is able to demonstrate basic concepts. Student is at ease with content, but fails to elaborate. Student demonstrates full knowledge (more than required). ____ Grammar and Spelling Work has four or more spelling errors and/or grammatical errors. Presentation has three misspellings and/or grammatical errors. Presentation has no more than two misspellings and/or grammatical errors. Presentation has no misspellings or grammatical errors. ____ Neatness Work is illegible. Work has three or four areas that are sloppy. Work has one or two areas that are sloppy. Work is neatly done. ____ References Work displays no references. Work does not have the appropriate number of required references. Reference section was completed incorrectly Work displays the correct number of references, written correctly. ____ Total----> ____ Comments: Powered by TeAch-nology.com- The Web Portal For Educators! (www.teach-nology.com)
  • 163. Unit 6, General Assessments, Test Blackline Masters, Financial Math Page 161 Louisiana Comprehensive Curriculum, Revised 2008 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 ___________%. Annual Percentage RateNo. of 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.
  • 164. Unit 6, General Assessments, Test Blackline Masters, Financial Math Page 162 Louisiana Comprehensive Curriculum, Revised 2008 6. Complete the monthly payment schedule below. Carlton Credit Union Repayment Schedule for Janice and Fred Easton Payment Number Unpaid Balance Payment on Principal Monthly Interest Total Payment 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 _____________________%.
  • 165. Unit 6, General Assessments, Test Blackline Masters, Financial Math Page 163 Louisiana Comprehensive Curriculum, Revised 2008 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. Date 7% Annual Percentage Rate Planned Principal Payment Total Payment Ending Balance 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?
  • 166. Unit 6, General Assessments, Test with Answers Blackline Masters, Financial Math Page 164 Louisiana Comprehensive Curriculum, Revised 2008 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___%. Annual Percentage RateNo. of 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.
  • 167. Unit 6, General Assessments, Test with Answers Blackline Masters, Financial Math Page 165 Louisiana Comprehensive Curriculum, Revised 2008 21. Complete the monthly payment schedule below. Carlton Credit Union Repayment Schedule for Janice and Fred Easton Payment Number Unpaid Balance Payment on Principal Monthly Interest Total Payment 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__________%.
  • 168. Unit 6, General Assessments, Test with Answers Blackline Masters, Financial Math Page 166 Louisiana Comprehensive Curriculum, Revised 2008 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. Date 7% Annual Percentage Rate Planned Principal Payment Total Payment Ending Balance 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.
  • 169. Unit 6, Specific Assessments, Activity 3, Average Daily Balance Blackline Masters, Financial Math Page 167 Louisiana Comprehensive Curriculum, Revised 2008 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 Periods Purchase Payment End-of-day Balance Number of Days Sum of Daily 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:
  • 170. Unit 6, Specific Assessments, Activity 3, Average Daily Balance Blackline Masters, Financial Math Page 168 Louisiana Comprehensive Curriculum, Revised 2008 4. Calculate the average daily balance and the finance charge for the statement below. Account Number: 1111-2222-3333- 4444Credit Card Statement Name: Boudreaux Dontired Statement Date: 4/13/2008 Payment Due: 5/13/2008 Billing Period: 3/14/08 – 4/13/08 Credit Line: $500.00 Credit Available: $309.14 New Balance: $190.86 Minimum Payment Due: $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: Purchases: Cash Advances: Payments: Credits: Finance Charge: Late Charge: NEW BALANCE +169.38 +67.74 + -50.00 - + + Current Amount Due: Amount Past Due: Amount Over Credit Limit: Annual Percentage Rate: Purchase: 24% Cash Advance: 36% Customer Service, call: 1-800-###-#### For Lost or Stolen Credit Cards, call: 1-800-###-#### Average Daily Balance:_____________________________ Finance Charge: ___________________________________
  • 171. Unit 6, Specific Assessments, Activity 3, Average Daily Balance with Answers Blackline Masters, Financial Math Page 169 Louisiana Comprehensive Curriculum, Revised 2008 1. Billing Periods Purchase Payment End-of-day Balance Number of Days Sum of Daily 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%. Average Daily Balance: $698.39 Finance Charge: $10.13 New Balance: $760.13 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 Date Transaction Amount June 1 Balance $800.00 June 11 Payment $200.00 June 25 Purchase $150.00
  • 172. Unit 6, Specific Assessments, Activity 3, Average Daily Balance with Answers Blackline Masters, Financial Math Page 170 Louisiana Comprehensive Curriculum, Revised 2008 4. Calculate the average daily balance and the finance charge for the statement below. Account Number: 1111-2222-3333-4444 Credit Card Statement Name: Boudreaux Dontired Statement Date: 4/13/2008 Payment Due: 5/13/2008 Billing Period: 3/14/08 – 4/13/08 Credit Line: $500.00 Credit Available: $308.77 New Balance: $191.23 Minimum Payment Due: $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: Purchases: Cash Advances: Payments: Credits: Finance Charge: Late Charge: NEW BALANCE +169.38 +67.74 + -50.00 - + + Current Amount Due: Amount Past Due: Amount Over Credit Limit: Annual Percentage Rate: Purchase: 24% Cash Advance: 36% Customer Service, call: 1-800-###-#### For Lost or Stolen Credit Cards, call: 1-800-###-#### Average Daily Balance:_______________$205.52________ Finance Charge: ______________$4.11_________________
  • 173. Unit 6, Specific Assessments, Activity 9, Repayment Schedule Rubric Blackline Masters, Financial Math Page 171 Louisiana Comprehensive Curriculum, Revised 2008 Repayment Schedule Rubric CATEGORY 2 1 0 Table All 23 months of table are complete Between 15 & 22 months of table complete Less than 15 months complete Calculations, months 5 through 22 All table calculations are correct Many calculations are correct Few calculations are correct Month 23 Monthly Payment, Amount for Interest, and Principal are correct One or two items incorrect, but not all. All items incorrect Total Amount Paid & Total Interest Paid Both correct One correct Neither correct Above rubric adopted from: http://rubistar.4teachers.org/
  • 174. Unit 6, Specific Assessments, Activity 11, House Savings Blackline Masters, Financial Math Page 172 Louisiana Comprehensive Curriculum, Revised 2008 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:
  • 175. Unit 6, Specific Assessments, Activity 11, House Savings with Answers Blackline Masters, Financial Math Page 173 Louisiana Comprehensive Curriculum, Revised 2008 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:
  • 176. Unit 6, Specific Assessments, Activity 13, Reciprocal Teaching Rubric Blackline Masters, Financial Math Page 174 Louisiana Comprehensive Curriculum, Revised 2008 Reciprocal Teaching Rubric CATEGORY (25 - 22) High quality (21-19) Above Average (18-14) Average (13-8) Below Average Focus on the task Consistently stays focused on the task and what needs to be done. Very self- directed. Focuses on the task and what needs to be done most of the time. Other group members can count on this person. Focuses on the task and what needs to be done some of the time. Other group members must sometimes nag, prod, and remind to keep this person on-task. Rarely focuses on the task and what needs to be done. Lets others do the work. Quality of Work Provides work of the highest quality. Provides high quality work. Provides work that occasionally needs to be checked/redone by other group members to ensure quality. Provides work that usually needs to be checked/redone by others to ensure quality. Focus on the task Consistently stays focused on the task and what needs to be done. Very self- directed. Focuses on the task and what needs to be done most of the time. Other group members can count on this person. Focuses on the task and what needs to be done some of the time. Other group members must sometimes nag, prod, and remind to keep this person on-task. Rarely focuses on the task and what needs to be done. Lets others do the work. Time- management Routinely uses time well throughout the project to ensure things get done on time. Group does not have to adjust deadlines or work responsibilities because of this person's procrastination. Usually uses time well throughout the project, but may have procrastinated on one thing. Group does not have to adjust deadlines or work responsibilities because of this person's procrastination. Tends to procrastinate, but always gets things done by the deadlines. Group does not have to adjust deadlines or work responsibilities because of this person's procrastination. Rarely gets things done by the deadlines AND group has to adjust deadlines or work responsibilities because of this person's inadequate time management. Rubric generated at: http://rubistar.4teachers.org/
  • 177. Unit 7, Activity 2, Dealer’s Cost Worksheet Blackline Masters, Financial Math Page 175 Louisiana Comprehensive Curriculum, Revised 2008 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 Vehicle / Options MSRP Dealer’s Cost Percentage Dealer’s Cost Total Dealer’s Cost Dealer’s Profit if all Options Are Purchased Percentage of Dealer Profit
  • 178. Unit 7, Activity 2, Dealer’s Cost Worksheet Blackline Masters, Financial Math Page 176 Louisiana Comprehensive Curriculum, Revised 2008 Dealer’s Cost Worksheet Vehicle / Options MSRP Dealer’s Cost Percentage Dealer’s Cost Total Dealer’s Cost Dealer’s Profit If All Options Are Purchased Percentage of Dealer Profit Dealer’s Cost Worksheet Vehicle / Options MSRP Dealer’s Cost Percentage Dealer’s Cost Total Dealer’s Cost Dealer’s Profit If All Options Are Purchased Percentage of Dealer Profit
  • 179. Unit 7, Activity 3, Rebate Worksheet Blackline Masters, Financial Math Page 177 Louisiana Comprehensive Curriculum, Revised 2008 Name_____________ Task: 1. Use the monthly payment table below to complete each Automobile Rebate Worksheet. Monthly Payment on a $100 Simple Interest Installment Loan Annual Percentage RateTerm in months 8% 9% 10.5% 11.5% 12% 14% 15% 16% 17% 18% 24% 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 Alarm system $500 Larger wheels & tires $945 Monthly Payment: Monthly Payment: Accent stripes $170 Leather seats $895 Extended warranty $615 Total Amount Repaid: Total Amount Repaid: Destination charge $465 TOTAL MSRP: $24,650 Rebate: 2,000 Total Finance Charge: Total Finance Charge: 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:
  • 180. Unit 7, Activity 3, Rebate Worksheet Blackline Masters, Financial Math Page 178 Louisiana Comprehensive Curriculum, Revised 2008 Automobile Rebate Worksheet #2 Vehicle / Options MSRP Cost without rebate Cost with rebate Base price $16,995 Alarm system - Larger wheels & tires - Monthly Payment: Monthly Payment: Accent stripes $150 Leather seats - Extended warranty $850 Total Amount Repaid: Total Amount Repaid: Destination charge $478 TOTAL MSRP: $18,473 Rebate: 1,500 Total Finance Charge: Total Finance Charge: APR: 17% Term: 60 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 #3 Vehicle / Options MSRP Cost without rebate Cost with rebate Base price $39,445 Alarm system $200 Larger wheels & tires $1,100 Monthly Payment: Monthly Payment: Accent stripes - Leather seats $1,300 Extended warranty Not offered Total Amount Repaid: Total Amount Repaid: Destination charge $760 TOTAL MSRP: $42,805 Rebate: 4,000 Total Finance Charge: Total Finance Charge: APR: 8% Term: 60 months Total cost of car without rebate: Total cost of car with rebate: Actual savings with rebate applied: Percentage of savings with rebate applied:
  • 181. Unit 7, Activity 3, Rebate Worksheet with Answers Blackline Masters, Financial Math Page 179 Louisiana Comprehensive Curriculum, Revised 2008 Unit 8, Activity 3 Solutions. Automobile Rebate Worksheet #1 Cost without rebate Cost with rebate Monthly Payment: $631.04 Monthly Payment: $579.84 Total Amount Repaid: $30,289.92 Total Amount Repaid: $27,832.32 Total Finance Charge: $5,639.92 Total Finance Charge: $5,182.32 Total cost of car without rebate: $30,289.92 Total cost of car with rebate: $27,832.32 Actual savings with rebate applied: $2,457.60 Percentage of savings with rebate applied: 8.1% Automobile Rebate Worksheet #2 Cost without rebate Cost with rebate Monthly Payment: $459.98 Monthly Payment: $422.63 Total Amount Repaid: $27,598.80 Total Amount Repaid: $25,357.80 Total Finance Charge: $9,125.80 Total Finance Charge: $8,384.80 Total cost of car without rebate: $27,598.80 Total cost of car with rebate: $25,357.80 Actual savings with rebate applied: $2,241.00 Percentage of savings with rebate applied: 8.1% Automobile Rebate Worksheet #3 Cost without rebate Cost with rebate Monthly Payment: $868.94 Monthly Payment: $787.74 Total Amount Repaid: $52,136.40 Total Amount Repaid: $47,264.40 Total Finance Charge: $9,331.40 Total Finance Charge: $8,459.40 Total cost of car without rebate: $52,136.40 Total cost of car with rebate: $47,264.40 Actual savings with rebate applied: $4,872.00 Percentage of savings with rebate applied: 9.3%
  • 182. Unit 7, Activity 4, Used Auto Worksheet Blackline Masters, Financial Math Page 180 Louisiana Comprehensive Curriculum, Revised 2008 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:
  • 183. Unit 7, Activity 7, Spreadsheet Depreciation Blackline Masters, Financial Math Page 181 Louisiana Comprehensive Curriculum, Revised 2008 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? Example chart. Example graph. Year Percent of Depreciation Amount of Depreciation Resale Value 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 $0.00 $10,000.00 $20,000.00 $30,000.00 $40,000.00 $50,000.00 $60,000.00 1 2 3 4 5 6 7 8 9 10 11 Year of Ownership ValueinDollars
  • 184. Unit 7, Activity 7, Spreadsheet Depreciation with Answers Blackline Masters, Financial Math Page 182 Louisiana Comprehensive Curriculum, Revised 2008 Year of Ownership Percent of Depreciation Amount of Depreciation Resale Value 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 Estimated year when $10,000 value is reached: 12-13 Depreciation 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 1 2 3 4 5 6 7 8 9 10 11 Year of Ownership ValueinDollars
  • 185. Unit 7, Activity 7, Depreciation Story Chain Blackline Masters, Financial Math Page 183 Louisiana Comprehensive Curriculum, Revised 2008 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:
  • 186. Unit 7, Activity 9, Buying/Leasing Opinionnaire Blackline Masters, Financial Math Page 184 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 187. Unit 7, Activity 9, Buying Vs Leasing Notes Blackline Masters, Financial Math Page 185 Louisiana Comprehensive Curriculum, Revised 2008 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
  • 188. Unit 7, Activity 9, Buying Vs Leasing Notes with Answers Blackline Masters, Financial Math Page 186 Louisiana Comprehensive Curriculum, Revised 2008 Buying vs. Leasing an Automobile Difference Buying Leasing Ownership You own the vehicle and get to keep it at the end of the financing term. You do not own the vehicle, and must return it at the end of the lease, or buy it. Up-front costs Include down payment, taxes, registration & other fees. Include first months payment, security deposit, down payment, taxes, registration and other fees. Monthly payments Loan payments are usually higher because you are paying for the entire price of the vehicle during the term of the loan. Lease payments are usually lower because you are paying only for the vehicle’s depreciation during the lease term. Early termination Can be terminated early by paying-off the loan early or by trading-in the vehicle for another vehicle. Often penalties are assessed for early lease termination. 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.
  • 189. Unit 7, Activity 10, Rental Cost Worksheet Blackline Masters, Financial Math Page 187 Louisiana Comprehensive Curriculum, Revised 2008 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 charge: $ Total gasoline cost: $ Total cost of renting the vehicle: Add: insurance fees, total rental fee, total mileage charge & total Total cost of renting the vehicle: $ 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 charge: $ Total gasoline cost: $ Total cost of renting the vehicle: Add: insurance fees, total rental fee, total mileage charge & total Total cost of renting the vehicle: $
  • 190. Unit 7, Activity 11, Louisiana Liability Minimum Blackline Masters, Financial Math Page 188 Louisiana Comprehensive Curriculum, Revised 2008 Task: 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. FYI 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
  • 191. Unit 7, Activity 12, Gasoline Reciprocal Teaching Record Blackline Masters, Financial Math Page 189 Louisiana Comprehensive Curriculum, Revised 2008 Introduction to How Gas Prices Work Predictions: Questions: Clarifications: Summary: Was the prediction confirmed? Yes No Details:
  • 192. Unit 7, Activity 12, Gasoline Reciprocal Teaching Record Blackline Masters, Financial Math Page 190 Louisiana Comprehensive Curriculum, Revised 2008 Breakdown of Gas Prices Predictions: Questions: Clarifications: Summary: Was the prediction confirmed? Yes No Details:
  • 193. Unit 7, Activity 12, Gasoline Reciprocal Teaching Record Blackline Masters, Financial Math Page 191 Louisiana Comprehensive Curriculum, Revised 2008 Gas Prices Across the Country Predictions: Questions: Clarifications: Summary: Was the prediction confirmed? Yes No Details:
  • 194. Unit 7, Activity 12, Gasoline Reciprocal Teaching Record Blackline Masters, Financial Math Page 192 Louisiana Comprehensive Curriculum, Revised 2008 OPEC and Gas Prices Around the World Predictions: Questions: Clarifications: Summary: Was the prediction confirmed? Yes No Details:
  • 195. Unit 7, Activity 12, Gasoline Reciprocal Teaching Record Blackline Masters, Financial Math Page 193 Louisiana Comprehensive Curriculum, Revised 2008 Cause and Effect Predictions: Questions: Clarifications: Summary: Was the prediction confirmed? Yes No Details:
  • 196. Unit 7, Activity 12, Gasoline Reciprocal Teaching Record Blackline Masters, Financial Math Page 194 Louisiana Comprehensive Curriculum, Revised 2008 Domestic Supplies Predictions: Questions: Clarifications: Summary: Was the prediction confirmed? Yes No Details:
  • 197. Unit 7, Activity 12, Gasoline Reciprocal Teaching Record Blackline Masters, Financial Math Page 195 Louisiana Comprehensive Curriculum, Revised 2008 Arctic National Wildlife Refuge Predictions: Questions: Clarifications: Summary: Was the prediction confirmed? Yes No Details:
  • 198. Unit 7, Activity 12, Gasoline Reciprocal Teaching Record Blackline Masters, Financial Math Page 196 Louisiana Comprehensive Curriculum, Revised 2008 Out of Gas Predictions: Questions: Clarifications: Summary: Was the prediction confirmed? Yes No Details:
  • 199. Unit 7, General Assessments, Transportation Jeopardy Blackline Masters, Financial Math Page 197 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 200. Unit 7, General Assessments, Transportation Jeopardy with Answers Blackline Masters, Financial Math Page 198 Louisiana Comprehensive Curriculum, Revised 2008 Answer Question The averaged fee for transporting all vehicles of a particular type to all dealerships. What is the destination 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- month. What are fixed costs? 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 vehicle. What is vehicle depreciation? The price I would advertise to sell a used vehicle. What is Clean Retail Value? Equations that perform calculations on values in your spreadsheet worksheet, starts with an equal sign (=). What are formulas? The type of lease that allows me the option to purchase the vehicle at the end of the lease contract. What is an open-ended 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 my vehicle. What is leasing a 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 the same age. Why does insurance cost more for teenage males? The leading cause of death among 13-19-year-old males and females in the United States. What is motor vehicle accidents? The acronym for the Organization of the Petroleum Exporting Countries. What is OPEC? 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?
  • 201. Unit 7, General Assessments, Car Purchase Essay Rubric Blackline Masters, Financial Math Page 199 Louisiana Comprehensive Curriculum, Revised 2008 Car Purchase Essay Name: Teacher: Date Submitted: Title of Work: Criteria Points 1 2 3 4 Organization Sequence of information is difficult to follow. Reader has difficulty following work because student jumps around. Student presents information in logical sequence which reader can follow. Information in logical, interesting sequence which reader can follow. ____ Content Knowledge Student does not have grasp of information; student cannot answer questions about subject. Student is uncomfortable with content and is able to demonstrate basic concepts. Student is at ease with content, but fails to elaborate. Student demonstrates full knowledge (more than required). ____ Grammar and Spelling Work has four or more spelling errors and/or grammatical errors. Presentation has three misspellings and/or grammatical errors. Presentation has no more than two misspellings and/or grammatical errors. Presentation has no misspellings or grammatical errors. ____ Neatness Work is illegible. Work has three or four areas that are sloppy. Work has one or two areas that are sloppy. Work is neatly done. ____ References Work displays no references. Work does not have the appropriate number of required references. Reference section was completed incorrectly. Work displays the correct number of references, written correctly. ____ Total----> ____ Comments: Powered by TeAch-nology.com- The Web Portal For Educators! (www.teach-nology.com)
  • 202. Unit 7, General Assessments, Quiz Blackline Masters, Financial Math Page 200 Louisiana Comprehensive Curriculum, Revised 2008 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 Coverage Limits Driving to Work Racing on the Weekends Touring Europe on 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. ___________
  • 203. Unit 7, General Assessments, Quiz with Answers Blackline Masters, Financial Math Page 201 Louisiana Comprehensive Curriculum, Revised 2008 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
  • 204. Unit 7, Specific Assessments, Activity 6, TVM Master Blackline Masters, Financial Math Page 202 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 205. Unit 7, Specific Assessments, Activity 6, TVM Master with Answers Blackline Masters, Financial Math Page 203 Louisiana Comprehensive Curriculum, Revised 2008 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
  • 206. Unit 7, Specific Assessments, Activity 7, Depreciation Analysis Blackline Masters, Financial Math Page 204 Louisiana Comprehensive Curriculum, Revised 2008 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?
  • 207. Unit 7, Specific Assessments, Activity 7, Depreciation Analysis Blackline Masters, Financial Math Page 205 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 208. Unit 7, Specific Assessments, Activity 7, Depreciation Analysis with Answers Blackline Masters, Financial Math Page 206 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 209. Unit 7, Specific Assessments, Activity 11, Insurance Posters Rubric Blackline Masters, Financial Math Page 207 Louisiana Comprehensive Curriculum, Revised 2008 Earned AssessmentElement Possible 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.
  • 210. Unit 8, Activity 1, Mortgage Loan Table Blackline Masters, Financial Math Page 208 Louisiana Comprehensive Curriculum, Revised 2008 Monthly Payment for a $1000 Mortgage Loan Length of Loan in YearsInterest 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
  • 211. Unit 8, Activity 3, Information About RESPA Blackline Masters, Financial Math Page 209 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 212. Unit 8, Activity 3, Information About RESPA Blackline Masters, Financial Math Page 210 Louisiana Comprehensive Curriculum, Revised 2008 • 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.
  • 213. Unit 8, Activity 3, Information About RESPA Blackline Masters, Financial Math Page 211 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 214. Unit 8, Activity 3, Information About RESPA Blackline Masters, Financial Math Page 212 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 215. Unit 8, Activity 3, Information About RESPA Blackline Masters, Financial Math Page 213 Louisiana Comprehensive Curriculum, Revised 2008 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
  • 216. Unit 8, Activity 3, RESPA Notes Blackline Masters, Financial Math Page 214 Louisiana Comprehensive Curriculum, Revised 2008 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?
  • 217. Unit 8, Activity 3, RESPA Notes Blackline Masters, Financial Math Page 215 Louisiana Comprehensive Curriculum, Revised 2008 List and explain section 8 of RESPA. List and explain section 9 of RESPA. List and explain section 10 of RESPA. List and explain legal recourses of the disgruntled buyer. List the complaint contact address at HUD.
  • 218. Unit 8, Activity 5, Other Housing Costs Blackline Masters, Financial Math Page 216 Louisiana Comprehensive Curriculum, Revised 2008 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
  • 219. Unit 8, Activity 5, Other Housing Costs with Answers Blackline Masters, Financial Math Page 217 Louisiana Comprehensive Curriculum, Revised 2008 A completed concept map may look like this. Student answers will vary. Maintenance $75 Internet Connection $30 Cable TV $70 Telephone $48 Natural Gas $32 Electricity $112 Water & Sewage $45 Insurance $88 Other Housing Costs
  • 220. Unit 8, Activity 7, Homeowners Insurance Blackline Masters, Financial Math Page 218 Louisiana Comprehensive Curriculum, Revised 2008 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.)
  • 221. Unit 8, Activity 8, Rent Or Buy? Blackline Masters, Financial Math Page 219 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 222. Unit 8, Activity 8, Rent Or Buy? Blackline Masters, Financial Math Page 220 Louisiana Comprehensive Curriculum, Revised 2008 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 Rent 3 Years 5 Years 10 Years 15 Years 30 Years $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
  • 223. Unit 8, Activity 8, Rent Or Buy? Blackline Masters, Financial Math Page 221 Louisiana Comprehensive Curriculum, Revised 2008 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
  • 224. Unit 8, Activity 9, How Much Can You Afford? Blackline Masters, Financial Math Page 222 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 225. Unit 8, General Assessments, Calculation Test Blackline Masters, Financial Math Page 223 Louisiana Comprehensive Curriculum, Revised 2008 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,
  • 226. Unit 8, General Assessments, Calculation Test Blackline Masters, Financial Math Page 224 Louisiana Comprehensive Curriculum, Revised 2008 $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.
  • 227. Unit 8, General Assessments, Calculation Test with Answers Blackline Masters, Financial Math Page 225 Louisiana Comprehensive Curriculum, Revised 2008 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
  • 228. Unit 8, General Assessments, Writing Test Blackline Masters, Financial Math Page 226 Louisiana Comprehensive Curriculum, Revised 2008 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.”
  • 229. Unit 8, General Assessments, Writing Test with Answers Blackline Masters, Financial Math Page 227 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 230. Unit 8, Specific Assessments, Activity 1, Graphing Calculator Solution Blackline Masters, Financial Math Page 228 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 231. Unit 8, Specific Assessments, Activity 1, Graphing Calculator Solution with Answers Blackline Masters, Financial Math Page 229 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 232. Unit 8, Specific Assessments, Activity 1, Graphing Calculator Solution with Answers Blackline Masters, Financial Math Page 230 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 233. Unit 8, Specific Assessments, Activity 2, Closing Cost Blackline Masters, Financial Math Page 231 Louisiana Comprehensive Curriculum, Revised 2008 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%. 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 (1st year due in full) The annual premium is computed by multiplying the purchase price by $4.00 per one thousand Property Taxes (1st year due in full) Rate of assessment: 45% Tax rate: 47.537 mills
  • 234. Unit 8, Specific Assessments, Activity 2, Closing Cost with Answers Blackline Masters, Financial Math Page 232 Louisiana Comprehensive Curriculum, Revised 2008 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%. Closing Cost Expense Worksheet Answers Loan Origination Fee 1% of the loan amount $1,850 Discount "Points" 4 points (1 "Point" = 1% of the loan amount) $7,400 Credit Report $55.00 $55.00 Appraisal Fee $400 $400.00 Underwriting $275 $275.00 Processing $300 $300.00 Plat Drawing Inspection $60.00 $60.00 Parish Recording Fees $50.00 $50.00 Flood Certification $20.00 $20.00 Name and Assessment Searches $24.00 $24.00 ARM Title Insurance Endorsement Fee $50.00 $50.00 Mortgage Registration Tax $2.30 per $1,000 of the loan amount $425.50 Closing Fee $250.00 $250.00 Misc. Fee's $350.00 $350.00 Prepaid Interim Interest 15 days (Loan amount x interest rate = annual interest, divided by 365 days = daily interest) $539.79 Homeowners Insurance Premium (1st year due in full) The annual premium is computed by multiplying the purchase price by $4.00 per one thousand $740 Property Taxes (1st year due in full) Rate of assessment: 45% Tax rate: 47.537 mills $3,957.46 Total $16,746.75
  • 235. Unit 8, Specific Assessments, Activity 6, Rental Rubric Blackline Masters, Financial Math Page 233 Louisiana Comprehensive Curriculum, Revised 2008 Performance: Completing a Rental Agreement CATEGORY/ Points Format 25% of grade Capitalization and Punctuation 25% of grade Information and Knowledge 50% of grade 4 Thorough completion of application including name, address, previous addresses, references Demonstrates correct usage of end punctuation, commas, and capitalization, including abbreviations Includes specific details of credit history and job contact information 3 A substantial amount of application is completed including name, address, and at least one other component Demonstrates a substantial amount of knowledge of punctuation and capitalization (2-5 errors) Has minor information missing on details of credit history and job contact information 2 Partial or incomplete application which shows only two components Moderately effective use of punctuation and capitalization (6-10 errors) Provides partial evidence of credit history and job contact information 1 Incomplete or serious misunderstanding of how to complete the application Minimally effective use of capitalization and punctuation (11 or more errors) Major amount of information missing and no history Rubric generated at: http://rubistar.4teachers.org/index.php
  • 236. Unit 8, Specific Assessments, Activity 8, Internet Research Rubric Blackline Masters, Financial Math Page 234 Louisiana Comprehensive Curriculum, Revised 2008 Completing Internet Research CATEGORY 4 Points 3 Points 2 Points 1 Point Locating Internet Website Independently enters website address correctly and efficiently locates website Independently enters website address correctly after self- correcting for errors and locates website Asks for assistance from teacher or peer and then able to enter website address or to use browser Despite repeated assistance unable to enter website address OR doesn't ask for assistance from teacher or peer Navigating Website Independently able to use mouse and browser efficiently to navigate the website Independently able to use mouse and browser to navigate website after self- correcting for errors Asks for assistance from teacher or peer and then able to navigate the website or use browser Despite repeated assistance unable to navigate website or use browser OR does not ask for assistance from teacher or peer Locating Relevant Information Independently able to locate information relevant to topic on website Independently able to locate information relevant to topic on website after self- correcting for errors Asks for assistance from teacher or peer and then able to locate relevant information on the topic on website Despite repeated assistance unable to locate relevant information on the website OR does not ask for assistance from teacher or peer Selecting Important Information Independently able to discern and select important information directly supportive of research topic Independently able to discern and select important information directly supportive of research topic after self- correcting for errors Asks for assistance from teacher or peer and then able to discern and select important information directly supportive of research topic Despite repeated assistance unable to discern and select important information directly supportive of research topic OR does not ask for assistance from teacher or peers Documenting Information in Notes/First Draft Independently able to neatly and accurately document in notes/first draft the information in own words from website Independently able to neatly and accurately document in notes the information from the website in notes/first draft in own words with Asks for assistance from teacher or peer and then able to neatly and accurately document in notes/first draft the information from Despite repeated assistance, unable to neatly and accurately document in notes/first draft the information from the website in own
  • 237. Unit 8, Specific Assessments, Activity 8, Internet Research Rubric Blackline Masters, Financial Math Page 235 Louisiana Comprehensive Curriculum, Revised 2008 not more than 5 corrections during teacher review the website in own words with not more than 10 corrections during teacher review words OR plagiarizes from website OR does not produce notes/first draft or product is illegible Completes Assignment Independently able to complete assignment Independently able to complete assignment after self-correcting or 2 requests for assistance from teacher Asks for assistance from teacher or peer more then 5 times and then able to complete assignment Despite repeated assistance is unable to complete assignment OR chooses not to complete assignment
  • 238. Unit 9, Activity 1, Stock Portfolio Blackline Masters, Financial Math Page 236 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 239. Unit 9, Activity 1, Portfolio Buy Sheet Blackline Masters, Financial Math Page 237 Louisiana Comprehensive Curriculum, Revised 2008 Portfolio Buy Sheet Date: Name: Symbol Full name of corporation Purchase price per share Number of shares Purchase Price Portfolio Total Purchase Price (Buy as close to $50,000 as possible.)
  • 240. Unit 9, Activity 1, Company Sheet Blackline Masters, Financial Math Page 238 Louisiana Comprehensive Curriculum, Revised 2008 Update each day for each company. NYSE Investments - Company Sheet Company Symbol Purchase Price Shares Purchased Total Investment $ $ Day 1 close Day 1 profit/loss Day 2 close Day 2 profit/loss $ $ $ $ Day 3 close Day 3 profit/loss Day 4 close Day 4 profit/loss $ $ $ $ Day 5 close Day 5 profit/loss Day 6 close Day 6 profit/loss $ $ $ $ Day 7 close Day 7 profit/loss Day 8 close Day 8 profit/loss $ $ $ $ Day 9 close Day 9 profit/loss Day 10 close Day 10 profit/loss $ $ $ $ Total profit/loss $
  • 241. Unit 9, Activity 1, Portfolio Tally Sheet Blackline Masters, Financial Math Page 239 Louisiana Comprehensive Curriculum, Revised 2008 NYSE Investments - Tally Sheet Company Shares purchases Purchase price Final price Investment results Profit/Loss Portfolio Total
  • 242. Unit 9, Activity 2, Newspaper Stock Listings Notes Blackline Masters, Financial Math Page 240 Louisiana Comprehensive Curriculum, Revised 2008 52-week Hi 52-week Lo Stock Symbol Dividend Yield Percentage Price to Earnings Ratio Volume 100s Hi Lo Close Net Change
  • 243. Unit 9, Activity 2, Newspaper Listings Blackline Masters, Financial Math Page 241 Louisiana Comprehensive Curriculum, Revised 2008 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 Hi Lo Stock Sym Div Yld % PE Vol 100s Hi Lo Close Net 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 Hi Lo Stock Sym Div Yld % PE Vol 100s Hi Lo Close Net Chg
  • 244. Unit 9, Activity 3, Business Television Opinionnaire Blackline Masters, Financial Math Page 242 Louisiana Comprehensive Curriculum, Revised 2008 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:_________________________________________
  • 245. Unit 9, Activity 3, Nightly Notes Blackline Masters, Financial Math Page 243 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 246. Unit 9, Activity 5, Introduction to Mutual Funds Blackline Masters, Financial Math Page 244 Louisiana Comprehensive Curriculum, Revised 2008 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
  • 247. Unit 9, Activity 5, Introduction to Mutual Funds Blackline Masters, Financial Math Page 245 Louisiana Comprehensive Curriculum, Revised 2008 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,
  • 248. Unit 9, Activity 5, Introduction to Mutual Funds Blackline Masters, Financial Math Page 246 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 249. Unit 9, Activity 5, Introduction to Mutual Funds Blackline Masters, Financial Math Page 247 Louisiana Comprehensive Curriculum, Revised 2008 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
  • 250. Unit 9, Activity 5, Introduction to Mutual Funds Blackline Masters, Financial Math Page 248 Louisiana Comprehensive Curriculum, Revised 2008 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
  • 251. Unit 9, Activity 5, Introduction to Mutual Funds Blackline Masters, Financial Math Page 249 Louisiana Comprehensive Curriculum, Revised 2008 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
  • 252. Unit 9, Activity 5, Discussion Guide Blackline Masters, Financial Math Page 250 Louisiana Comprehensive Curriculum, Revised 2008 What Are They Predictions: Questions: Clarifications: Summary: Was the prediction confirmed? Yes No Details:
  • 253. Unit 9, Activity 5, Discussion Guide Blackline Masters, Financial Math Page 251 Louisiana Comprehensive Curriculum, Revised 2008 Advantages and Disadvantages Predictions: Questions: Clarifications: Summary: Was the prediction confirmed? Yes No Details:
  • 254. Unit 9, Activity 5, Discussion Guide Blackline Masters, Financial Math Page 252 Louisiana Comprehensive Curriculum, Revised 2008 Different Types of Funds Predictions: Questions: Clarifications: Summary: Was the prediction confirmed? Yes No Details:
  • 255. Unit 9, Activity 5, Discussion Guide Blackline Masters, Financial Math Page 253 Louisiana Comprehensive Curriculum, Revised 2008 How Funds Can Earn Money for You Predictions: Questions: Clarifications: Summary: Was the prediction confirmed? Yes No Details:
  • 256. Unit 9, Activity 5, Discussion Guide Blackline Masters, Financial Math Page 254 Louisiana Comprehensive Curriculum, Revised 2008 Fees and Expenses Predictions: Questions: Clarifications: Summary: Was the prediction confirmed? Yes No Details:
  • 257. Unit 9, Activity 7, Risk vs. Reward Blackline Masters, Financial Math Page 255 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 258. Unit 9, Activity 7, Risk vs. Reward Blackline Masters, Financial Math Page 256 Louisiana Comprehensive Curriculum, Revised 2008 Main Idea Methods to reduce risk: Insurance Diversification Dollar-Cost Averaging Asset Allocation Insured Savings/Checking Accounts U.S. Savings Bonds Certificates of Deposit Treasury Issues ( T-Bills) Money Market Accounts & Mutual Funds High-Grade Municipal & Corporate Bonds & Mutual Funds High-Grade Preferred Stock High-Grade Convertible Bonds Balanced & Index Mutual Funds Real Estate Blue Chip Common Stock & Mutual Funds Growth Mutual Funds Collectibles Speculative Stocks/Bonds/Mutual Funds Commodities Derivatives Penny Stock Higher Risk Higher Potential Return Lower Risk Lower Potential Return Risk/Reward Pyramid
  • 259. Unit 9, Activity 8, Life Insurance Terms Blackline Masters, Financial Math Page 257 Louisiana Comprehensive Curriculum, Revised 2008 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: Examples/Relationship: Universal life Definition: Characteristics: Examples/Relationship: Variable life Definition:
  • 260. Unit 9, Activity 8, Life Insurance Terms Blackline Masters, Financial Math Page 258 Louisiana Comprehensive Curriculum, Revised 2008 Characteristics: Examples/Relationship: Adverse selection Definition: Characteristics: Examples/Relationship: Beneficiary Definition: Characteristics: Examples/Relationship: Cash value Definition: Characteristics: Examples/Relationship:
  • 261. Unit 9, Activity 8, Life Insurance Terms Blackline Masters, Financial Math Page 259 Louisiana Comprehensive Curriculum, Revised 2008 Contestability period Definition: Characteristics: Examples/Relationship: Indemnify Definition: Characteristics: Examples/Relationship: Medical Information Bureau Definition: Characteristics: Examples/Relationship: Preferred Risk Definition: Characteristics:
  • 262. Unit 9, Activity 8, Life Insurance Terms Blackline Masters, Financial Math Page 260 Louisiana Comprehensive Curriculum, Revised 2008 Examples/Relationship: Rated Policy Definition: Characteristics: Examples/Relationship: Second-To-Die Policy Definition: Characteristics: Examples/Relationship: Single premium life Definition: Characteristics: Examples/Relationship:
  • 263. Unit 9, Activity 9, Health Insurance: Understanding What It Covers Blackline Masters, Financial Math Page 261 Louisiana Comprehensive Curriculum, Revised 2008 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. Copyright © 2001-2003 American Academy of Family Physicians Permission is granted to print and photocopy this material for nonprofit educational uses.
  • 264. Unit 9, Activity 9, Health Insurance on Trial Blackline Masters, Financial Math Page 262 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 265. Unit 9, General Assessments, Building Wealth Quiz Blackline Masters, Financial Math Page 263 Louisiana Comprehensive Curriculum, Revised 2008 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?
  • 266. Unit 9, General Assessments, Building Wealth Quiz with Answers Blackline Masters, Financial Math Page 264 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 267. Unit 9, General Assessments, Test Blackline Masters, Financial Math Page 265 Louisiana Comprehensive Curriculum, Revised 2008 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?
  • 268. Unit 9, General Assessments, Test Blackline Masters, Financial Math Page 266 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 269. Unit 9, General Assessments, Test Blackline Masters, Financial Math Page 267 Louisiana Comprehensive Curriculum, Revised 2008 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?
  • 270. Unit 9, General Assessments, Test with Answers Blackline Masters, Financial Math Page 268 Louisiana Comprehensive Curriculum, Revised 2008 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
  • 271. Unit 9, General Assessments, Test with Answers Blackline Masters, Financial Math Page 269 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 272. Unit 9, Specific Assessments, Activity 1, Calculator Tool Blackline Masters, Financial Math Page 270 Louisiana Comprehensive Curriculum, Revised 2008 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 investments used in the calculator screenshots. Keep a daily track of what your investments are doing by calculating the profit and loss for each of your stocks from the Portfolio Buy Sheet BLM over a ten day period. 1) Enter the cost per share 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 Stock Name Cost per Share Number of Shares Total Investment A 14.23 450 6403.50 B 5.03 800 4024.00 C 14.76 700 10332.00 D 7.24 301 2179.24 E 29.65 250 7412.50 F 21.56 300 6468.00 G 47.12 125 5890.00 H 9.49 200 1898.00 I 11.07 300 3321.00 J 3.45 600 2070.00
  • 273. Unit 9, Specific Assessments, Activity 1, Calculator Tool Blackline Masters, Financial Math Page 271 Louisiana Comprehensive Curriculum, Revised 2008 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 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.
  • 274. Unit 9, Specific Assessments, Activity 1, Calculator Tool Blackline Masters, Financial Math Page 272 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 275. Unit 9, Specific Assessments, Activity 8, Definitions Blackline Masters, Financial Math Page 273 Louisiana Comprehensive Curriculum, Revised 2008 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 1. Adverse selection A. The amount that the owner of a permanent life insurance policy is entitled to receive if the policy does not remain in force until the insured’s death. 2. Beneficiary B. A nonprofit organization established to provide information to insurers about impairments that applicants have admitted to, or that other insurers have detected, in connection with previous applications for insurance. 3. Cash value C. A type of life insurance or annuity contract that is purchased by the payment of one lump sum. 4. Contest- ability period D. This is a substandard policy, which means the physical or moral lifestyle of the insured is more susceptible to loss. It's the opposite of a Preferred Risk. 5. Indemnify 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 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 Information Bureau F. A policy that combines protection against premature death with a savings account that can be invested in stocks, bonds, and money market mutual funds at the policyholder’s discretion. 7. Preferred Risk G. The tendency of those exposed to a higher risk to seek more insurance coverage than those at a lower risk. Insurers react either by charging higher premiums or not insuring at all. 8. Rated Policy H. The person or legal entity the owner of an insurance policy names to receive the policy benefit if the event insured against occurs. 9. Second-To- Die Policy I. A flexible premium policy that combines protection against premature death with a type of savings that typically earns a money market rate of interest. Death benefits can be changed during the life of the policy within limits. 10. Single premium life J. This is a fancy word that means your beneficiaries are paid the death benefit to compensate for loss. 11. Term life K. Permanent life insurance policy that insures two lives under one policy, usually a husband and wife. Only after both insured parties are deceased will the death benefit proceeds be paid. 12. Universal life L. The time during which an insurer has the right to cancel or rescind an insurance policy if the application contained a material misrepresentation. 13. Variable life M. The oldest kind of cash value life insurance that combines protection against premature death with a savings account. Premiums are fixed and guaranteed and remain level throughout the policy’s lifetime. 14. Whole life N. This refers to a person whose lifestyle, health, occupation, personal habits, hobbies, family history, etc., indicate the person should live a long time. Smokers and race car drivers are not this.
  • 276. Unit 9, Specific Assessments, Activity 8, Definitions with Answers Blackline Masters, Financial Math Page 274 Louisiana Comprehensive Curriculum, Revised 2008 Answer 1. Adverse selection G A. The amount that the owner of a permanent life insurance policy is entitled to receive if the policy does not remain in force until the insured’s death. 2. Beneficiary H B. A nonprofit organization established to provide information to insurers about impairments that applicants have admitted to, or that other insurers have detected, in connection with previous applications for insurance. 3. Cash value A C. A type of life insurance or annuity contract that is purchased by the payment of one lump sum. 4. Contest- ability period L D. This is a substandard policy, which means the physical or moral lifestyle of the insured is more susceptible to loss. It's the opposite of a Preferred Risk. 5. Indemnify J 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 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 Information Bureau B F. A policy that combines protection against premature death with a savings account that can be invested in stocks, bonds, and money market mutual funds at the policyholder’s discretion. 7. Preferred Risk N G. The tendency of those exposed to a higher risk to seek more insurance coverage than those at a lower risk. Insurers react either by charging higher premiums or not insuring at all. 8. Rated Policy D H. The person or legal entity the owner of an insurance policy names to receive the policy benefit if the event insured against occurs. 9. Second-To- Die Policy K I. A flexible premium policy that combines protection against premature death with a type of savings that typically earns a money market rate of interest. Death benefits can be changed during the life of the policy within limits. 10. Single premium life C J. This is a fancy word that means your beneficiaries are paid the death benefit to compensate for loss. 11. Term life E K. Permanent life insurance policy that insures two lives under one policy, usually a husband and wife. Only after both insured parties are deceased will the death benefit proceeds be paid. 12. Universal life F L. The time during which an insurer has the right to cancel or rescind an insurance policy if the application contained a material misrepresentation. 13. Variable life I M. The oldest kind of cash value life insurance that combines protection against premature death with a savings account. Premiums are fixed and guaranteed and remain level throughout the policy’s lifetime. 14. Whole life M N. This refers to a person whose lifestyle, health, occupation, personal habits, hobbies, family history, etc., indicate the person should live a long time. Smokers and race car drivers are not this.
  • 277. Unit 9, Specific Assessments, Activity 9, Trial Rubric Blackline Masters, Financial Math Page 275 Louisiana Comprehensive Curriculum, Revised 2008 Health Insurance Mock Trial Rubric 4 3 2 1 Points Research/Group Performance Gathering Information Gathers a great deal of information with clear criteria in mind Gathers and selects sufficient information with criteria in mind Is generally on track gathering information, but information is weak in some areas Little information gathered Organizing Information Information is organized in a logical and thoughtful manner. Is able to organize information Shows some skill in approaching the problem in a logical manner Shows little skill in approaching the problem logically Using Information Shows insight in drawing conclusions from information Draws conclusions from the information Makes a concluding statement that generalizes information Draws no conclusions and/or demonstrates little purpose for gathering data Thinking Clearly demonstrates divergent thinking and is insightful Uses some divergent thinking in approach to the problem Shows little divergent thinking Exhibits no creative or divergent thinking Working with Others Almost always listens to, shares with, and supports the efforts of others; tries to keep people working well together Usually listens to, shares, with, and supports the efforts of others; does not cause "waves" in the group Often listens to, shares with, and supports the efforts of others, but sometimes is not a good team member Rarely listens to, shares with, or supports the efforts of others; often is not a good team player. Focus on the Task Consistently stays focused on the task and what needs to be done; very self-directed Focuses on the task and what needs to be done most of the time; other group members can count on this person. Focuses on the task and what needs to be done some of the time; other group members must sometimes nag, Rarely focuses on the task and what needs to be done; lets others do the work
  • 278. Unit 9, Specific Assessments, Activity 9, Trial Rubric Blackline Masters, Financial Math Page 276 Louisiana Comprehensive Curriculum, Revised 2008 prod, and remind to keep this person on- task Trial Preparation Statements Statements are fully developed, completely consistent with research, and accurately portrayed. Statements are adequately developed, fairly consistent, and accurately portrayed. Statements show a lack of preparation. Statements are not developed, and presentation shows little or no preparation. Questions Questions are relevant, logical, and clear. Questions are properly formed and delivered. Questions are clear, logical, and relevant. Most of the time; most questions are properly formed. Questions lack logic. Most questions are poorly formed. Questions are irrelevant or unclear. Depth of Understanding Statements and questions show sophisticated understanding of how evidence relates to and supports or opposes the claim. Statements and questions show an understanding of how evidence supports or opposes the claim. Statements and questions show some understanding of how evidence supports or opposes the claim. Statements and questions are inconsistent with evidence supporting or opposing the claim. Trial Behavior Voice Easily understood and consistently uses an appropriate rate, volume, and intonation Understood most of the time and uses an appropriate rate, volume, and intonation most of Understood, but uses an inappropriate rate, volume, or intonation that distracts from what Not easily understood
  • 279. Unit 9, Specific Assessments, Activity 9, Trial Rubric Blackline Masters, Financial Math Page 277 Louisiana Comprehensive Curriculum, Revised 2008 the time. is being said. Authenticity Excellent use of body and facial expression; words and gestures match. Adequate body and facial expression Lacks realism; body and facial expressions do not match actions Unconvincing; body and facial expressions are not used Courtroom Decorum Has appropriate interactions with judge and opposing attorneys Interactions with other members of the trial are appropriate most of the time. Unsure of how to interact with other members of the trial Distracted, demonstrates inappropriate behavior Overall Effort Contributions Routinely provides useful ideas. A definite leader who contributes a lot of effort. Usually provides useful ideas. A strong group member who tries hard! Sometimes provides useful ideas. A satisfactory group member who does what is required. Rarely provides useful ideas. May refuse to participate. Pride Work reflects this student's best efforts. Work reflects a strong effort from this student. Work reflects some effort from this student. Work reflects very little effort on the part of this student.
  • 280. Unit 10, Activity 2, Cash Flow Record Blackline Masters, Financial Math Page 278 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 281. Unit 10, Activity 2, Cash Flow Record Blackline Masters, Financial Math Page 279 Louisiana Comprehensive Curriculum, Revised 2008 Cash Flow Record Week 2 Week of: Name: Income Expenses Sunday Monday Tuesday Wednesday Thursday Friday Saturday TOTALS: Income minus expenses:
  • 282. Unit 10, Activity 3, Monthly Budget Sheet Blackline Masters, Financial Math Page 280 Louisiana Comprehensive Curriculum, Revised 2008 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) $ $
  • 283. Unit 10, General Assessments, End-Of-Course Test Blackline Masters, Financial Math Page 281 Louisiana Comprehensive Curriculum, Revised 2008 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.
  • 284. Unit 10, General Assessments, End-Of-Course Test Blackline Masters, Financial Math Page 282 Louisiana Comprehensive Curriculum, Revised 2008 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
  • 285. Unit 10, General Assessments, End-Of-Course Test Blackline Masters, Financial Math Page 283 Louisiana Comprehensive Curriculum, Revised 2008 3. 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
  • 286. Unit 10, General Assessments, End-Of-Course Test Blackline Masters, Financial Math Page 284 Louisiana Comprehensive Curriculum, Revised 2008 7. Total Annual Payment for Mortgage and Car Loan Mortgage Obtained From: Total Annual Mortgage Payment Plus Annual Payment on a 3-year Car Loan Total Annual Mortgage Payment Plus Annual Payment on a 4-year Car 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 from… And buy a car? And lease a car? 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?
  • 287. Unit 10, General Assessments, End-Of-Course Test Blackline Masters, Financial Math Page 285 Louisiana Comprehensive Curriculum, Revised 2008 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. 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. Lender A Lender B Lender C
  • 288. Unit 10, General Assessments, End-Of-Course Test with Answers Blackline Masters, Financial Math Page 286 Louisiana Comprehensive Curriculum, Revised 2008 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 (¼th of annual premium) $105 $105 $105 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 & Repairs $1,100 $1,100 $1,100 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
  • 289. Unit 10, General Assessments, End-Of-Course Test with Answers Blackline Masters, Financial Math Page 287 Louisiana Comprehensive Curriculum, Revised 2008 3. 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
  • 290. Unit 10, General Assessments, End-Of-Course Test with Answers Blackline Masters, Financial Math Page 288 Louisiana Comprehensive Curriculum, Revised 2008 7. Total Annual Payment for Mortgage and Car Loan Mortgage Obtained From: Total Annual Mortgage Payment Plus Annual Payment on a 3-year Car Loan Total Annual Mortgage Payment Plus Annual Payment on a 4-year Car 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 from… And buy a car? And lease a car? 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
  • 291. Unit 10, General Assessments, End-Of-Course Test with Answers Blackline Masters, Financial Math Page 289 Louisiana Comprehensive Curriculum, Revised 2008 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. 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. Lender A Lender B Lender C $20,910 $17,510 $15,810
  • 292. Unit 10, Specific Assessments, Activity 2, Cash Flow Rubric Blackline Masters, Financial Math Page 290 Louisiana Comprehensive Curriculum, Revised 2008 Cash Flow Record Name: Teacher: Criteria Points 4 3 2 1 Assignment Completeness Responses for each day and each category. Missing no more than 2 responses. Missing 3 to 5 responses. Less than 1/2 of responses completed. Accuracy All items are correct. Most items are correct. Many items are correct. Less than 1/2 of all items are correct. Demonstrated Knowledge Shows complete understanding of the financial and mathematical process. Shows substantial understanding of the financial and mathematical process. Response shows some understanding of the process. Response shows a complete lack of understanding for the process. Requirements Goes beyond the requirements of the activity, i.e. provides receipts for all expenses. Meets the requirements of the activity. Does not meet the requirements of the activity. Legibility Legible handwriting; easy to read. Marginally legible handwriting. Writing is not legible in places. Writing is not legible. Total Points Teacher Comments: Powered by TeAch-nology.com- The Web Portal For Educators! (www.teach-nology.com)
  • 293. Unit 10, Specific Assessments, Activity 4, Financial Plan Rubric Blackline Masters, Financial Math Page 291 Louisiana Comprehensive Curriculum, Revised 2008 Financial Planning Portfolio CATEGORY 3 2 1 0 Points Binder Divided into required sections. Dividers headed correctly and decorated following theme of section. Many sections missing. Headings not used correctly. Dividers not decorated. Financial Goals All six required items are present and complete. Goals are realistic, include measurable terms, have a time frame, include action to be taken. Education timeline is complete and reflects an uncommon depth of understanding. More than 3 items missing or incomplete. Goals are not realistic. Do not include measurable terms, time frame or action to be taken. Education timeline is missing or incomplete. Reflects a lack of understanding of future goals. Earnings Potential All six required items are present and complete. Chosen career and income is clearly stated. Calculations correct. More than 3 items missing or incomplete. Chosen career and income are not stated. Many errors in calculations. Automobile All five required items are present and complete. Taken as a whole, reflects an uncommon depth of understanding. More than 3 items missing or incomplete. Taken as a whole, reflects a lack of understanding. Housing All nine required items are present and complete. Taken as a whole, reflects an uncommon depth of understanding. More than 5 items missing or incomplete. Taken as a whole, reflects a lack of understanding.
  • 294. Unit 10, Specific Assessments, Activity 4, Financial Plan Rubric Blackline Masters, Financial Math Page 292 Louisiana Comprehensive Curriculum, Revised 2008 Insurance All four required items are present and complete. All categories are covered: Life, Auto & Health. More than 2 items missing or incomplete. Category missing. Investments All 14 required items are present and complete. Work demonstrates superior knowledge of topic. More than 6 items missing or incomplete. Work demonstrates lack of knowledge of topic. Banking All four required items are present and complete. All calculations correct. More than 2 items missing or incomplete. Few calculations correct. Credit All six required items are present and complete. Work demonstrates superior knowledge of credit. More than 3 items missing or incomplete. Taken as a whole, reflects a lack of understanding of credit. Organization Neat, organized information. Easy to read and follow. Outstanding document for future reference. Unorganized and illegible. Not easy to read or to follow. Understanding of document’s future purpose not evident. Total Points Rubric adapted from a template found at: http://rubistar.4teachers.org/index.php