Semester 1 Topic 5 Level K

Task Name : Paying off your Mortgage Task Level : K (Year 10)
Semester : 1 Topic : Comparing Fractions VC Strand : Money and Financial Mathematics
Web Address :
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 :