Standard 3: Describe the advantages and disadvantages of short-term and long-term purchases.

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General Information
Number: MA.912.FL.3
Title: Describe the advantages and disadvantages of short-term and long-term purchases.
Type: Standard
Subject: Mathematics (B.E.S.T.)
Grade: 912
Strand: Financial Literacy

Related Benchmarks

This cluster includes the following benchmarks.

Related Access Points

This cluster includes the following access points.

Access Points

MA.912.FL.3.AP.1
Compare simple and compound interest over time.
MA.912.FL.3.AP.2
Solve real-world problems involving simple and compound interest.
MA.912.FL.3.AP.4
Identify the relationship between simple interest and linear growth. Identify the relationship between compound interest and exponential growth.
MA.912.FL.3.AP.5
Select the advantages and disadvantages of using cash versus credit.
MA.912.FL.3.AP.6
Given a bill statement, identify the finance charge, interest rate and total amount due.
MA.912.FL.3.AP.7
Given two different student loan options, compare the advantages and disadvantages of each loan’s interest rate, monthly payment and total cost.
MA.912.FL.3.AP.8
Given the total cost of an item purchased using two different payment plans, calculate the total cost difference of the item between payment plans.
MA.912.FL.3.AP.9
Given two different mortgage loans, one 15-year and one 30-year, compare the advantages and disadvantages of each loan’s interest rate, monthly payment and total cost.
MA.912.FL.3.AP.10
Identify how short-term and long-term purchases, past payment history, and amount of debt may increase or decrease credit scores.
MA.912.FL.3.AP.11
Given several payment plans, with the monthly payment calculated, select the plan that will reduce the debt the quickest.

Related Resources

Vetted resources educators can use to teach the concepts and skills in this topic.

Formative Assessment

College Costs:

Students are asked to transform an exponential expression so that the rate of change corresponds to a different time interval.

Type: Formative Assessment

Lesson Plans

The Cost of Credit: Financing an Automobile:

Students will play a Scratch program and make choices to simulate buying and financing an automobile to explore the cost of credit, in this lesson plan.

Type: Lesson Plan

My first credit card!:

In this Model Eliciting Activity, MEA, students use compare and analyze various features of credit cards to choose the best one for a college student. As part of their analysis, students will create step functions to model the interest charged and visually compare interest costs associated with each credit card.

Model Eliciting Activities, MEAs, are open-ended, interdisciplinary problem-solving activities that are meant to reveal students’ thinking about the concepts embedded in realistic situations. MEAs resemble engineering problems and encourage students to create solutions in the form of mathematical and scientific models. Students work in teams to apply their knowledge of science and mathematics to solve an open-ended problem while considering constraints and tradeoffs. Students integrate their ELA skills into MEAs as they are asked to clearly document their thought processes. MEAs follow a problem-based, student-centered approach to learning, where students are encouraged to grapple with the problem while the teacher acts as a facilitator. To learn more about MEAs visit: https://www.cpalms.org/cpalms/mea.aspx

Type: Lesson Plan

Manufacturing Designer Gear T-Shirts:

In this Model Eliciting Activity, MEA, students will analyze data, write and graph systems of equations, and develop a procedure to rank and justify manufacturing companies to produce t-shirts. Students will also use their functions to determine the break-even point given each manufacturer.

Model Eliciting Activities, MEAs, are open-ended, interdisciplinary problem-solving activities that are meant to reveal students’ thinking about the concepts embedded in realistic situations. MEAs resemble engineering problems and encourage students to create solutions in the form of mathematical and scientific models. Students work in teams to apply their knowledge of science and mathematics to solve an open-ended problem while considering constraints and tradeoffs. Students integrate their ELA skills into MEAs as they are asked to clearly document their thought processes. MEAs follow a problem-based, student-centered approach to learning, where students are encouraged to grapple with the problem while the teacher acts as a facilitator. To learn more about MEAs visit: https://www.cpalms.org/cpalms/mea.aspx

Type: Lesson Plan

Shopping for a Home Mortgage Loan:

In this Model Eliciting Activity, MEA, students will analyze data and client preferences to recommend the best mortgage loan. Students will compare different types of mortgage loans and justify their recommendation for the client.

Model Eliciting Activities, MEAs, are open-ended, interdisciplinary problem-solving activities that are meant to reveal students’ thinking about the concepts embedded in realistic situations. MEAs resemble engineering problems and encourage students to create solutions in the form of mathematical and scientific models. Students work in teams to apply their knowledge of science and mathematics to solve an open-ended problem while considering constraints and tradeoffs. Students integrate their ELA skills into MEAs as they are asked to clearly document their thought processes. MEAs follow a problem-based, student-centered approach to learning, where students are encouraged to grapple with the problem while the teacher acts as a facilitator. To learn more about MEAs visit: https://www.cpalms.org/cpalms/mea.aspx

Type: Lesson Plan

How much is your time worth?:

This lesson is designed to help students solve real-world problems involving compound and continuously compounded interest. Students will also be required to translate word problems into function models, evaluate functions for inputs in their domains, and interpret outputs in context.

Type: Lesson Plan

Original Student Tutorials

Time Value of Money: Exploring Inflation:

Students will explore the impact of inflation in this financial literacy tutorial.

Type: Original Student Tutorial

Interest: Exploring Simple and Compound Rates:

Students will explore and compare simple and compound interest calculations.

Type: Original Student Tutorial

Student Resources

Vetted resources students can use to learn the concepts and skills in this topic.

Original Student Tutorials

Time Value of Money: Exploring Inflation:

Students will explore the impact of inflation in this financial literacy tutorial.

Type: Original Student Tutorial

Interest: Exploring Simple and Compound Rates:

Students will explore and compare simple and compound interest calculations.

Type: Original Student Tutorial

Parent Resources

Vetted resources caregivers can use to help students learn the concepts and skills in this topic.