Accelerated PreCalculus/Trig 3Name: ____________________________________ Annuity Project - MortgagesDue Date: _________________________________ Project Description: Complete all of the calculations for each payment structure and answer each analysis question. Each question must be answered in complete sentences. The entire project must be created as a PowerPoint. The project should look presentable, professional, and creative. The project must be submitted to Schrier’s stu_drop folder by Tuesday, October 28 th at 9:00am as Lastname.Annuity. After projects are graded, they will be printed and displayed in the room. Step 1 - Research houses for sale in this area (Pennsylvania or New Jersey) and find a home that you would be interested in purchasing. Find the sale price and a picture. One slide of your PowerPoint must show a picture of the home, the price, and the web address as a reference. Step 2 – Determine your down payment. You must pay 20% of the cost of a home as a down payment. (This is a common practice). The remaining balance due will be the value of the loan that you need to finance. One slide of your PowerPoint must explain how you calculated your down payment. Step 3 – Complete one PowerPoint slide for each of the following mortgage structures that have been offered to you. Include the answers to the questions. Structure 1: A 25-year mortgage with an APR of 7.2% that will be paid monthly. Structure 2: A 30-year mortgage with an APR of 6.9% that will be paid monthly. Structure 3: A 15-year mortgage with an APR of 8.1% that will be paid monthly. Questions: 1) What will your monthly payment be? 2) What is the total amount of interest that you paid during the life of the loan? 3) What is the total amount that you paid for your house in the end? Details: -All steps must be shown and typed for each problem. -Do not round any values until the FINAL step. (Exception: Please round “i“ to the nearest ten thousandth.) -Answers must be presented in a complete sentence. For Example: “My monthly payment using Structure 1 will be $ ” PowerPoint Slides: Slide 1 – Title (Include Name, Date, Title of Project) Slide 2 – House Information Slide 3 – Down Payment Slide 4 – Structure 1 Slide 5 – Structure 2 Slide 6 – Structure 3 Slide 7 – Analysis Questions #1-3 Slide 8 – Analysis Question #4 Please make sure that you spell check and edit all of your written responses. Analysis Questions: 1) Compare the three mortgage structures. In terms of its monthly payment, which mortgage structure would be the least expensive? 2) Compare the three mortgage structures. In terms of the amount paid in interest, which mortgage structure would be the least expensive? 3) Compare the three mortgage structures. In terms of total amount paid for the home, which mortgage structure would be the least expensive? 4) Predictions. Imagine a plausible future for yourself. Decide what type of job and family you think you will have. Research average salaries for this career. (Please include a reference). Think about other financial responsibilities that you may have. Which mortgage structure is best suited for you and why?
Accelerated PreCalculus/Trig 3 Annuity Project – Mortgages Grading Rubric: This project will be worth a total of 65 points in the TEST category of your marking period grade. How to LOSE points: Projects will lose 13 points for each day late. Projects will lose 2 points total for not be named correctly or dropped into the appropriate stu_drop folder. Projects that are copied/plagiarized will lose 65 points. All students involved in the copying will receive a zero on the project. How to GAIN points: ItemPoints EarnedPoints Possible Title Slide2 House Information Slide3 Down Payment Slide4 Structure 1 Slide6 Structure 2 Slide6 Structure 3 Slide6 Content of Analysis Questions #1-36 Content of Analysis Question #412 Grammar, Spelling, Mechanics, etc5 Overall Neatness, Professionalism, and Organization 5 Overall Project Appearance and Technology Use 5 Use of Class Time5