| Task Name : Paying off your Mortgage | Task Level : K (Year 10) | ||
| Semester : 1 | Topic : Comparing Fractions | VC Strand : Money and Financial Mathematics | |
| Web Address : http://maths.crusoecollege.vic.edu.au/mfmK | |||
| Equipment Needed : A device with Excel or similar spreadsheet capacity | |||
| Victorian Curriculum outcome : Connect the compound interest formula to repeated applications of simple interest using appropriate digital technologies | |||
| Task description : Students use a spreadsheet to simulate paying off a $300,000 mortgage over 25 years using repayments of $808 per fortnight at 4.99% per annum. They then change the spreadsheet to investigate what happens to the expected pay-off date when (a) extra repayments are made; (b) a lump sum is added to the mortgage, and (c) the interest rate is lowered by 0.5%. Students then create an advertisement on the effects of extra repayments, lump sums and interest rate decreases. | |||
| Assessment options : Any drawn or digital representation of the advertisement. | |||
| Teacher notes : | |||