Mathematics of Personal Finance
10456
Semester 1
Students must complete the following to receive full credit:
Define Terms with examples for each term.
Write a Summary of each video (minimum 3-5 sentences per video). Label clearly for teacher to see work.
Answer Important Questions after watching the videos and taking notes.
Take Exam at: https://testmoz.com/class/16400 be sure to print (control + "P") results of submitted exam and staple to the front of each credit.
Total pages (with exam):
5-10 pages of work per credit
Testing after each unit can be used using the website above. Please use the websites and YouTube videos below for course material:
Unit 1: Introduction to Simple Interest and Net Income
Review the videos and media and take notes on terms to know. If the terms are not on the media, please Google them in order to get the materials needed to take the test.
Terms to Know:
annual wages
net income
gross income
simple interest
compound interest
hourly rate
wages
annual wages
estimate
overtime
time and a half
double time
total wages
tip
weekly pay
monthly pay
biweekly pay
bimonthly pay
percentages to decimals
grocery pricing (per pound, per can, etc.). How to shop at a store with coupons.
When completed with terms above and notes below take test and staple to front of work:
Notes:
Important Questions:
Solve the following problems:
DOMINO EFFECT How much does Domino’s charge for pizza?
1. Below are the prices for a medium 2-topping pizza and a medium 4-topping pizza from Domino’s. How much do you think Domino’s is charging for each topping, and how much would you expect to pay for a plain cheese pizza?
Medium Pizza: Pepperoni, Green Peppers $13.97
Medium Pizza: Bacon, Chicken, Mushrooms, Peppers $16.95
2. Write an equation you could use to determine the price of a pizza for a given number of toppings. Then graph it. If you ordered your favorite medium pizza, how much would you expect to spend?
3. If you double the number of toppings that you order, do you pay twice as much for the pizza? Why or why not?
4. Write an equation for the price of a small Domino’s pizza and an equation for the price of a large Domino’s pizza. Of the three sizes, which has the highest cost per topping, and why might this be? The lowest base price?
Small Pizza: Pepperoni, Green Peppers $9.99
Small Pizza: Bacon, Chicken, Mushrooms, Peppers $11.99
Large Pizza: Sausage, Chicken, Mushrooms, Peppers $19.75
Large Pizza: Philly Steak $14.68
5. Graph the equations for the small and large pizzas. If you had $20, what is the maximum number of toppings you could order in each size – small, medium, and large – and which would you choose?
6. Why do you think Domino’s prices their pizzas differently in different markets (California vs. DC)?
7. Which of the following describes how to calculate net pay?
A. Subtract the total deductions from the net pay.
B. Add the total deductions to the gross pay.
C. Subtract the total deductions from the gross pay.
D. Subtract the total deductions from the take-home pay
8. Paul Lospennato wants to buy a house. Five years from now, he will need $90,000. Paul wants you to calculate how much he needs today to put in the bank (10% semi annually) to reach his goal in the future.
A. $20,676.90
B. $22,876.90
C. $24,376.90
D. $22,376.90
10. Michael Valerski had these cash receipts for the week of September 12: paycheck, $562.14; mail in rebate, $75; birthday gift, $100; refund from returned merchandise, $42.67. Complete a cash receipts record to find Michael’s total receipts for the week.
A. $779.81
B. $679.81
C. $704.81
D. $737.14
11. Lou Valdez is buying a truck. His monthly interest was $155 at 10 1/4% interest. What is Lou's principal balance after the beginning of November? Use 360 days. Do not round the denominator in your calculator.
12. Marcia Gadzera wants to retire in San Diego when she is 65 years old. Marcia is now 50 and believes she will need $90,000 to retire comfortably. To date, she has set no retirement money. If she gets interest of 10% compounded semiannually, how much must she invest today to meet her goal of $90,000?
13. Where do you do grocery shopping? A chain supermarket, or a Mom and Pop's style corner store? Ethnic supermarkets? At a cheaper store or one that is known to be more expensive? Why?
14. Do you comparison shop, both between stores and within stores? Wal Mart vs. 7 Eleven vs. Trader Joes?
15. Why is it important to create a budget for personal finance?
*Hand in ALL work to teacher with test results on the front.
Work should be 5-10 pages when completed for full credit.
Unit 2: Payments and Buying Products
Review the videos and media and take notes on terms to know. If the terms are not on the media, please Google them in order to get the materials needed to take the test.
Terms to Know:
sale prices
gross price
quarterly salary
semiannual salary
annual salary
salary
salary plus commission
rate of commission
deductions
take home pay
net pay
gross pay
computing change
converting gallons
dozens
coupons
conditional coupons
finding the cost of a single unit
per
unit price
comparing unit prices
paying bills
household bills
rent vs. owning a house
When completed with terms above and notes below take test and staple to front of work:
Notes:
Important Questions:
1. A pair of shoes at Nordstrom’s costs $120. The shoes are on sale for 15% off. You have a coupon that allows you take an additional 10% off. How much will the shoes cost?
2 Best Buy is having a 10% off electronics sale. The Wii has an original price of $299.99. Since you are a Best Buy employee you can take an additional 25% off. Find the sale price with your employee discount.
3. It’s the end of the season and trampolines are being discounted 15%. You also have a one day only coupon for an additional 10% off one item. The original price of the trampoline was $399. What is the sale price?
4. A shirt at Abercrombie and Fitch is on the 30% off clearance table. All sale items are being marked down an additional 20%. If the original price of the shirt was $85, what is the sale price?
5. A coat that sells for $80 is discounted 20%. The sales tax is 6%. Is it better for the buyer to have the discount applied before the sales tax is added or after the sales tax is added?
6. The new Super Mario Brothers sells for $50. Luckily, on amazon.com they offer a 15% discount, plus you have a 10% coupon. How much will it cost you?
7. Mrs. Beethoven needs to buy a gift for Mrs. Haydn’s new baby. She is considering the Baby Mozart DVD, which sells for $20. The store is having a 30% off sale, plus she has a 5% coupon. How much will the DVD cost?
8. Stella wants to buy a remote control helicopter. The one she wants costs $120. Target has a 50% off sale, plus she would get an additional 5% off for using her Target credit card. How much would the helicopter cost?
9. Dora wants to buy a $40 backpack. Samantha’s Club has a 20% sale and then a 15% off coupon. Priceco has a 10% sale and a 25% off coupon. Which one is the better deal?
10. The game Apples to Apples sells for $26.99 and Clue sells for $20.99. They are on sale for 25% off, plus you get an additional employee discount of 30%. You have $25. Do you have enough money to purchase both games?
*Hand in ALL work to teacher with test results on the front.
Work should be 5-10 pages when completed for full credit.
Unit 3: Buying and Interest Payments
Review the videos and media and take notes on terms to know. If the terms are not on the media, please Google them in order to get the materials needed to take the test.
Terms to Know:
mortgage
mortgage rates
buying a house
fractions (10%, 20%, 50%, etc.)
conversion of 1/2, 2/10, 3/5, etc.
percent of some number
landlord
lease
renter's rule
down payment
principal
financed
interest rate on a mortgage
fixed rate mortgage
variable rate mortgage
term
30 year vs. 15 year
compound interest
When completed with terms above and notes below take test and staple to front of work:
Notes:
Important Questions:
Solve the following problems:
Solve the following problems:
Should your family buy or rent a house? Why?
What kind of home can I afford?
How much will my monthly payments be if the house cost $150,000 with taxes and insurance?
What money do you need up front when buying a home?
What are all the cost in buying a home? ______ price + _______ cost + misc. cost
What is PMI?
What is the difference between a 30 year loan and a 15 year loan?
What was the subprime lending crisis?
If your home is $100,000 what is the annual rate of interest you pay going to be at the end of 30 years?
At a very low interest rate of 6%, you're paying $_______ in interest on a $125,000 loan over 30 years.
What is a:
Conventional loan
FHA loan
VA
Good Faith Estimate
12. To calculate an employee’s time-and-a-half pay rate
A. Multiply the regular pay rate by 2.
B. Divide the regular pay rate by 1.5.
C. Divide the regular pay rate by 2.
D. Multiply the regular pay rate by 1.5
*Hand in ALL work to teacher with test results on the front.
Work should be 5-10 pages when completed for full credit.
Unit 4: Taxes and Simple Finance Interest
Review the videos and media and take notes on terms to know. If the terms are not on the media, please Google them in order to get the materials needed to take the test.
Terms to Know:
how to buy a car vs. lease a car
annual mileage rate per year
miles per gallon
cost of gas
gallons of gas vs. price per gallon
miles driven per year
base price
options in cars
depreciation
deferred price
auto insurance
liability insurance
uninsured motorist
premiums
odometer
miles traveled
computing gas mileage
range
miles per hour (MPH)
parts and labor
When completed with terms above and notes below take test and staple to front of work:
Notes:
Important Questions:
Solve the following problems:
Build and price a new car of your choice (e.g., AutoTrader.com)
a. Calculate your monthly payment for a five-year term, 5% expected APR, with a $10,000 down payment.
b. What happens to your payment if you decrease your term to three years?
c. You lost your savings and can no longer afford to put money down on the car. The day worsens when the dealership informs you that your credit rating is less than ideal, and your expected APR is 18%. How does this affect your monthly payment for a three-year term?
d. Multiply your monthly payments by the amount of months in the term to determine the total price you will have paid for the car. How much more are you paying for the car in comparison to the selling price?
2. Visit a website that sells used cars (e.g., AutoTrader.com) to see how much the used version of the car you selected earlier cost.
Use that price for the following questions.
a. Using the used car price, calculate your monthly payments for a five-year term, 5% expected APR, with $10,000 down. Compare the payments to that of a new car.
b. Once again, you cannot afford to put any money down on the car and the dealer informs you your poor credit results in an 18% APR. How does this affect your monthly payment for a three-year term?
c. Multiply your monthly payments by the amount of months in the term to determine the total price you will have paid for the car. How much more are you paying for the car in comparison to the selling price?
3. Find a leasing deal for a car.
a. State the terms of the lease.
b.You drive 500 miles a month. Use that number to estimate the amount of miles you drive yearly. Is the allotted mileage for this lease a viable option for you? Explain.
c. Let's say you drive more than 1,000 miles every month, calculate the mileage overage fees you would incur based on the additional per mile cost stated in the lease.
d. Calculate how much you will have paid for the car after the 3 years including the money due at signing.
4. What is a certified used car?
*Hand in ALL work to teacher with test results on the front.
Work should be 5-10 pages when completed for full credit.
Unit 5: Finance and Working with Food
Review the videos and media and take notes on terms to know. If the terms are not on the media, please Google them in order to get the materials needed to take the test.
Terms to Know:
calories
ratio
proportion
products
nutrition information and labels
daily value
RDA: Recommended Dietary Allowances
fat grams
losing weight
portion size
cook time
food preparation time
food budget
converting pounds to calories
buying and selling products
When completed with terms above and notes below take test and staple to front of work:
Notes:
Important Questions:
Solve the following problems:
Find the cost of a 3-ounce serving of succotash (mixture of two vegetables) if the following ingredients are used.
5-pound box lima beans @ $1.23 per pound.
2 1/2-pound box corn @ $0.58 per pound.
To state this function as a math formula, it would be expressed as:
Total weight X unit price = total cost.
5 pounds X $1.23 = $6.15 total cost of lima beans.
2 1/2 pounds X $0.58 = $1.45 total cost of corn.
$6.15 + $1.45 = $7.60 total cost of succotash.
What is the total cost?
2. 1. If your starting inventory is $15,800.00, you purchase $36,000.00 in food and at the end of the month you have $18,000.00 left in inventory, what was your food cost in dollars?
3. If your food cost was $33,800.00 and the starting inventory was $15,800.00 plus purchases of $44,000.00 what would your ending inventory be?
4. Using the example of question #2, what would your average inventory be?
5. What would your inventory turnover ratio be if the following conditions existed?
Beginning inventory $22,000.00
Purchases $27,000.00
Ending inventory $7,000.00
Food sales $145,000.00
6. If you charge $9.50 for a spaghetti dinner and your food cost percentage is 30%, what is the cost of your food portion in dollars?
7. A restaurant wants to maintain a 31 % food cost. If a pork chop dinner has a food cost per portion of $5.10, what should the menu price be?
8. You know the selling price of your items must represent a 30% food cost, what must you charge for a meal where your food cost is $8.50?
9. The actual food cost was $50,000.00 and the actual beverage cost was $20,000.00. In addition sales were $225,000.00. What was the contribution margin percentage?
10. Determine the labor cost percentage if:
your revenue was $50,000.00
Management salaries are $2,500.00
Cook salaries are $3,000.00
Server salaries are $1,500.00
Food and Beverage costs are $14,000.00
What is the total labor cost ______ and what is the labor cost percentage ________?
*Hand in ALL work to teacher with test results on the front.
Work should be 5-10 pages when completed for full credit.