Introduction: Sooner or later everyone will be confronted with the question of whether or not leasing a car is a viable option to buying a car. In other words, how important is it to own your car?Prior Knowledge: Percentages, numbers, decimals and basic arithmetic.
Grade Level: 9-12.
Task: Each student will come with information on 3 NEW cars they would like to drive. Then for each car the student will use the Buy/Lease calculator to see which option, buy or lease is best.
Resources: SmartCalc - Should I Lease or Purchase?
http://www.calcbuilder.com/cgi-bin/calcs/AUT3.cgi/FinanCenterProcess: Each student will have gathered information on 3 new cars they would like to buy or lease. Once in the calculator program, students will see where to input their information. For each car write up a one page analysis describing whether buying or leasing is best. In each write up, be sure to include the calculator's graph.
Learning Advice: Advise the students to be ready with the price of the car, interest rate of the loan, length of the loan and the down payment. Also, they should know for how long the lease should be and how much they want to pay a month.
Evaluation: To see what the student's have learned from this activity they will write up a report for each car describing what method is best, buying or leasing. This report should demonstrate understanding of the computations as well as the graph provided. The top scores will be earned by those giving a clear, literate description of the results along with any additional insights.
Extensions: Part of being an educated consumer is to have knowledge of the product. At the end of the calculator page, there is an opportunity to research the cost of the vehicle you want as well as obtaining the best lease. This may be a good place to start, depending on what goal you want the students to reach.
Conclusion: The goal for the students will be to see a quick calculation comparison between buying or leasing a car. This is not a for sure determination since leasing a car has many confusing facets. However, this activity lets them get a feel for the two concepts. One other thing to consider is that most students will not qualify for most loans or leases.
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California Mathematics Academic Standards:
Grade 8-12:
Algebra I
1.0 Students identify and use the arithmetic properties of subsets of integers and rational, irrational, and real numbers, including closure properties for the four basic arithmetic operations where applicable.1.1 Students use properties of numbers to demonstrate whether assertions are true or false.5.0 Students solve multi-step problems, including word problems, involving linear equations and linear inequalities in one variable and provide justification of each step.
6.0 Students graph a linear equation and compute the x- and y- intercepts (e.g., graph 2x + 6y = 4). They are also able to sketch the region defined by linear inequality (e.g., they sketch the region defined by 2x + 6y < 4).
NCTM 9-12: Mathematics as Problem Solving; Mathematical Connections; Discrete Mathematics.
May 1997
Revised August 26, 1999
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