1. Business Education & Math
Major Purchases
A Concept Based
Curriculum Unit for Secondary Schools
Jill Carlblom, Peter Danielson,
Thomas Moskalik, Dawn Stevenson
Business Education & Math

2. CURRICULUM MAP

3. CONCEPTS
Loan
Interest
Lease
Value
Affordability

4. ESSENTIAL UNDERSTANDINGS
Value of purchase reflects cost and bias.
Lease and loan may not be the best way to purchase.
Interest may not the only consideration in evaluating a loan.
Prejudice and discrimination can influence choice.
Many factors should be considered when determining the affordability of a purchase.

5. GUIDING QUESTIONS What biases contribute to value?
How do we determine cost?
What other ways are there to “finance” a purchase?
How many ways are there to calculate interest? What are the advantages/disadvantages of each?
What are the factors that go into making a purchase choice?
What factors should be considered for determining the affordability of a purchase?
Are cost and affordability related?

6. MN GRADUATION STANDARDS
Grade
Strand
Sub-Strand
Standard
9, 10, 11
I.MATHEMATICAL REASONING
Apply skills of mathematical representation, communication and reasoning throughout the remaining three content strands.
II. NUMBER SENSE, COMPUTATION AND OPERATIONS
A. Number Sense
Use real numbers, represented in a variety of ways, to quantify information and to solve real-world and mathematical problems.
III. PATTERNS, FUNCTIONS AND ALGEBRA
B. Algebra (Algebraic Thinking)
Solve simple equations and inequalities numerically, graphically, and symbolically. Use recursion to model and solve real-world and mathematical problems.
9,10,11,12
Business Education
No MN Graduation Standards exists

7. ACADEMIC VOCABULARY Tier 1 (basic)* Tier 2 (hi freq) Tier 3 (low freq)
Interest
Parameter
Estimation
Variance
Principal
Taxes
Credit
Loan
Lease
Value
Cost
Price
Tier 2 (hi freq)
Credit report
Advertising
Ambiguity
Criteria
Exaggerated claim
Research
Application
Rate
Negotiation
Marketing
Defer
Default
Tier 3 (low freq)
Media
Medium
Truth in advertising
* as defined in Bringing Words To Life

8. DIMENSION 2 DECLARATIVE KNOWLEDGE
Know what interest is
Know what principal is
Know what taxes are
Know what a budget is
Know what to compare
Know what your limits are for value considerations
Know what is a lease
Know what your income is
Know what are your expenses
Know what is a credit report
Know operation costs are part of value statement and affordability

9. DIMENSION 2 PROCEDURAL KNOWLEDGE
Know how to calculate interest
Know how to calculate a payment (PITI)
Know how to set up a budget
Know how to compare values to arrive a which item to purchase
Know where to determine real costs for value considerations
Know how to calculate your payments as a percentage of income
Know how to get a loan
Know how to negotiate a lease
Know how to compare loan rates

10. DIMENSION 2 Procedural Knowledge
Construct a model of the steps for a purchase
Construct Model: Students construct a model identifying decision steps for a major purchase using flowchart
Shaping: Students will have opportunities to review each step in flowchart and try it (example follows)
Internalizing: Students will use identified websites to answer worksheet scavenger hunt questions

11. DIMENSION 2 EXAMPLE FLOWCHART
Identify Values
Price range
Wants
Needs
DIMENSION 2 EXAMPLE FLOWCHART
Search
Compare
Autos
Price
Value
Afford
Finance
Purchase

12. DIMENSION 3 Extend & Refine Knowledge
COMPARING
Construct comparison matrix (example follows)
CONSTRUCTING SUPPORT
Students will construct support (justify) their facts or opinions using the worksheet provided, explaining their reasons for their purchase conclusion

13. DIMENSION 3 COMPARISON MATRIX EXAMPLE
SUV
Coupe
Hybrid
Invoice
$32,000
$21,000
$35,000
Insurance for 6 months
$700
$600
$500
Fuel economy
15 city
20 highway
23 city
34 highway
40 city
30 highway
Affordability N Y

14. DIMENSION 4 Using Knowledge Meaningfully
DECISION MAKING
Students will construct a decision-making matrix using the organizer provided
INVESTIGATION
Ask students to investigate variable, fixed, balloon payment loans, and then create their own model for a major purchase with a loan using their new knowledge to reach a buy decision. (Example rubric follows)

15. DIMENSION 4 PERFORMANCE ASSESSMENT RUBRIC1 2 3
Express definition of variable, fixed and balloon loans
Defined from dictionary
Defined and showing limited understanding
Defined and showing understanding and application
Write justification for their buy decision
Justification contains relevant facts
Justification expresses some supporting facts
Justification is well reasoned with relevant supporting facts
Calculate financial information
Calculates information when given formulas
Calculates and fills in information appropriately
Independent calculation and understanding calculated information evident

16. MODEL A DIMENSION 4 STRATEGY DECISION MAKING

17. WEBSITES WEBSITES CONTAINING A VARIETY OF LESSON PLAN IDEAS:
WEBSITES CONTAINING INFORMATION APPROPRIATE TO THIS LESSON PLAN:
Kelley Blue Book (New & Used car pricing)
Mayo CU car pricing
Think CU car loans page
Wells Fargo Auto Financing page
Interest Calculations
Rochester Post Bulletin Auto Finder
Ford
Chevrolet
Pontiac
Lincoln
Cadillac
Mercedes-Benz
Volvo
Ferrari
Toyota
Advice