Consumer Math Project
PURPOSE
In Chapter 7, we learn about finance and consumer mathematics. The purpose of this
project is to help you better understand the concept of interest and how it applies to the
real world, in an everyday situation.
INSTRUCTIONS
A. Choose ONE of the following scenarios to write your paper on:
• Buying a car, OR
• Buying a house
The purchase must require a down payment, and the remaining balance is to be
financed over a given period of time (at least 3 years) with a given interest rate.
B. Find a reasonable price for your purchase with a reasonable loan term (length
of time in which the loan is to be repaid) and the current interest rate.
• Provide an image from the newspaper/advertisement and cite your source for
each item.
• If you use the internet for your research, please include screenshots and active
links.
C. Using the price and interest rate you’ve found, answer the following:
1. Calculate the dollar amount of the down payment (if a percentage is
required), OR the percentage of down payment (if the dollar amount is
given).
2. Calculate the amount of loan after down payment.
3. Calculate your monthly payments over the life of this loan.
4. Calculate the remaining balance after 2 years of making monthly payments.
5. Calculate how much your purchase will actually cost you in total.
6. Calculate the amount of interest you will end up paying once the loan has
been paid off completely.
Do NOT use automatic calculators provided on loan/bank websites. The goal
of this project is for YOU to do the math on your own (you can use Desmos
links provided in the course). If you use answers from an automatic loan
payment calculator, you will receive no credit for your submission.
Santa Ana College – Math 105 Online Instructor: D. Vu
D. Write a paper summarizing the results. Your paper should be neatly typed,
utilize proper spelling/grammar/punctuation, and include the following:
Introduction: A paragraph to introduce what you are looking for to purchase,
share the reason why you would like to purchase this particular car/home.
Provide pictures/screenshots/links of the car or home you are considering.
Calculations: For each calculation in part (C) above, include all of the below.
o State the formula used (not the name of the formula, but the formula
itself). You can either type it or insert an image/screenshot.
o Define the real-life meaning for each variable in the formula (example:
P = principal amount, I = interest amount, etc.)
o State the values you substituted for each variable in the formula.
o Provide a snapshot of how you get the answer, or provide screenshots if
you use a Desmos link provided in the course to get your answers.
o Explain your work using proper mathematical vocabulary and reasoning.
Conclusion: A paragraph sharing your thoughts on the project. What was the
most valuable thing you learned? Were you surprised by any of it? Has it
influenced how you might approach these big purchases in the future?
