Sample work Mathematics Standard 1 Year 12: depreciation and loans

Nature of the task

Students use knowledge and understanding of loans and depreciation to answer a variety of questions.

Context

Students have engaged in learning for the subtopics, Investment, Depreciation and Loans. They have participated in activities to develop knowledge of the concepts of spending, saving and borrowing money. They have analysed different financial situations and calculated the best options for given circumstances and to solve financial problems.

Outcomes assessed

MS1-12-5 makes informed decisions about financial situations likely to be encountered post-school

MS1-12-9 chooses and uses appropriate technology effectively and recognises appropriate times for such use

MS1-12-10 uses mathematical argument and reasoning to evaluate conclusions, communicating a position clearly to others

Assessment criteria

Students will be assessed on their ability to:

• solve a variety of problems based on a scenario
• select and use appropriate mathematical processes, technologies and language to investigate organise and interpret data and calculations
• use reasoning and justification related to problems.

Questions

Depreciation

• Explain how you can determine that this graph is displaying the declining-balance method of depreciation?
• A vehicle is purchased for $28,000 and has a life of 4 years.
  • Using the declining-balance method of depreciation at a rate of 23% p.a. calculate the salvage value of the vehicle at the end of 3 years.
  • How long (correct to 1 decimal place) will it take for the car to fall below half its original value?

Reducible balance loans

• Use the internet to compare the fees and charges on home loans offered by two financial institutions.
• Design and write a loan question with at least 3 components, and then use an online loan calculator to answer the question.

Credit cards

• There are many things to consider when choosing a credit card.
  • Read the information on ‘How to choose a credit card’ on the Money Smart website and record the key things to consider when choosing a credit card.
  • Compare three credit cards and decide which of these would be the best option for your circumstances. Explain why you have selected this card.
• Al's credit card company charges 0.056% daily simple interest on any money owing.
  • What annual rate of interest is equivalent to a daily rate of 0.056%?
  • Explain why 0.056% = 0.00056 as a decimal.
  • If Al owed $2400 on the credit card for 42 days, how much interest would be charged?
• You purchase a mobile phone for $949 using a credit card you researched earlier. You were relying on your birthday money to pay for the purchase but this money was not available until after the due date of the statement. If the phone was unpaid on the card for a total of 26 days, calculate the total cost of purchasing the phone using the credit card (assume simple interest and include any late fees).