Lesson 7

Syllabus Dot-Point(s)

Calculate the cost of buying expensive items by paying an initial deposit and making regular repayments that include simple interest

Lesson Goal

By the end of this lesson, students will demonstrate their calculations for paying an initial deposit and making regular repayments for a simple loan, when purchasing expensive items

Outcomes

• MA5.1-2WM Selects and uses appropriate strategies to solve problems
• MA5.1-4NA Solves financial problems involving earning, spending and investing money

Working mathematically

• Investigate fees and charges related to 'buy today, no more to pay until …' promotions (Problem Solving)
• Compare the total cost of buying on terms to paying by cash (Problem Solving)
• Recognise that repossession does not remove financial debt (Reasoning)

Class

Stage: 5.1

Ability: Mixed

Duration: 50 minutes

Introduction

5 mins

• Recap: Ask if students have any questions from homework assigned in the previous lesson. Quickly address any misconceptions. Explain and demonstrate working-out on the whiteboard. Students copy this into their exercise books.
• Briefly explain what will be learned during this lesson.
• Distribute Exit Slip to students

Activity - The Block

20 mins

• In groups of four, students use their pinterest board to collect ideas for creating their dream:
  • Bedroom
  • Games Room
  • Playground in the backyard
  • Cubby-house
  • Car
  • Pet room

For this, students are given an initial spending budget of $500. They will receive an extra $500 per month, for the next 6 months. Based on these terms and conditions, students are required to research and propose a plan of what they will purchase and the different payment options they will use, and for which purchase. Payment options may include: PAYG, afterpay, zip pay. Students are also required to make a Simple Loan. They must include the institution from which they are borrowing, the amount, and the terms and conditions for repayment. This information is to be presented on a group google doc shared with the teacher. Students are to create an appropriate table and provide screenshots of their purchases (including price).

Activity

20 mins

Teacher explains and demonstrates a few related examples from their preferred textbook. In pairs, students compare upfront payment and plans for phone purchases. They calculate the total cost for each option to complete an advantages and disadvantages table on google docs shared with the teacher. Students must also include a discussion about the situations upfront payment and phone plans would best be used to suit different needs and circumstances.

Examples are:

• JB HI FI Shopping Catalogue - Buying phone outright. Father's day sale
• JB HI FI Phone Plans - Interest applied
• JB HI FI Phones

Conclusion

5 mins

• Homework: assign related exercises in your preferred textbook. Remind students to label questions they have trouble with for clarification at the beginning of the next lesson.
• Briefly explain the relationship between this and the following lesson
• Students return completed Exit Slip (AFL)
• Students show completed homework from previous lesson
• Remind students to sum their savings for The $5 Challenge. The results will be shared with the class at the end of next lesson

Educators are encouraged to keep a teacher’s journals for the following critical reflections, based on class observations and feedback from exit slips:

What went well, and why?

Did students understand the concepts?

Were students engaged?

What improvements can be made, and how?

Which students may require extra support, and how?

Which students may require more challenging content?

Are there additional resources that can be added to this lesson?