Page 84 - The Ontario Curriculum, Grades 11 and 12: Mathematics, 2007

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3. Borrowing
THE ONTARIO CURRICULUM, GRADES 11 AND 12 | Mathematics
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2.4 determine, through investigation using technology (e.g., a TVM Solver on a graphing calculator or on a website), the effect on the future value of a compound interest invest- ment of changing the total length of time,
the interest rate, or the compounding period
Sample problem: Compare the results at
age 40 of making a deposit of $1000 at
age 20 or a deposit of $2000 at age 30, if both investments pay 6% interest per annum, compounded monthly.
2.5 solve problems, using technology, that involve applications of compound interest to saving and investing
By the end of this course, students will:
3.1 gather, interpret, and compare information about the effects of carrying an outstanding balance on a credit card at current interest rates
Sample problem: Describe ways of minimiz- ing the cost of carrying an outstanding bal- ance on a credit card.
3.2 gather, interpret, and compare information describing the features (e.g., interest rates, flexibility) and conditions (e.g., eligibility, required collateral) of various personal loans (e.g., student loan, car loan, “no interest” deferred-payment loan, loan to consolidate debt, loan drawn on a line of credit, payday or bridging loan)
3.3 calculate, using technology (e.g., calculator, spreadsheet), the total interest paid over the life of a personal loan, given the principal, the length of the loan, and the periodic payments, and use the calculations to justify the choice of a personal loan
3.4 determine, using a variety of tools (e.g., spreadsheet template, online amortization tables), the effect of the length of time taken to repay a loan on the principal and interest components of a personal loan repayment
3.5 compare, using a variety of tools (e.g., spread- sheet template, online amortization tables), the effects of various payment periods (e.g., monthly, biweekly) on the length of time taken to repay a loan and on the total interest paid
3.6 gather and interpret information about credit ratings, and describe the factors used to deter- mine credit ratings and the consequences of a good or bad rating
3.7 make and justify a decision to borrow, using various criteria (e.g., income, cost of borrow- ing, availability of an item, need for an item) under various circumstances (e.g., having a large existing debt, wanting to pursue an education or training opportunity, needing transportation to a new job, wanting to set up a business)