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Become familiar with and describe the advantages and disadvantages of short-term purchases, long-term purchases, and mortgages.
Standard 3 : Loans and FinancingArchived
Cluster Standards

This cluster includes the following benchmarks.

Visit the specific benchmark webpage to find related instructional resources.

  • MA.912.F.3.1 : Compare the advantages and disadvantages of using cash versus a credit card.
  • MA.912.F.3.2 : Analyze credit scores and reports.
  • MA.912.F.3.3 : Calculate the finance charges and total amount due on a credit card bill.
  • MA.912.F.3.4 : Compare the advantages and disadvantages of deferred payments.
  • MA.912.F.3.5 : Calculate deferred payments.
  • MA.912.F.3.6 : Calculate total cost of purchasing consumer durables over time given different down payments, financing options, and fees.
  • MA.912.F.3.7 : Calculate the following fees associated with a mortgage:
    • discount points 
    • origination fee 
    • maximum brokerage fee on a net or gross loan 
    • documentary stamps 
    • prorated expenses (interest, county and/or city property taxes, and mortgage on an assumed mortgage)
  • MA.912.F.3.8 : Substitute to solve a variety of mortgage formulas, including but not limited to Front End Ratio, Total Debt-to-Income Ratio, Loan-to-Value Ratio (LTV), Combined Loan-to-Value Ratio (CLTV), and Amount of Interest Paid Over the Life of a Loan.
  • MA.912.F.3.9 : Calculate the total amount to be paid over the life of a fixed rate loan.
  • MA.912.F.3.10 : Calculate the effects on the monthly payment in the change of interest rate based on an adjustable rate mortgage.
  • MA.912.F.3.11 : Calculate the final pay out amount for a balloon mortgage.
  • MA.912.F.3.12 : Compare the cost of paying a higher interest rate and lower points versus a lower interest rate and more points.
  • MA.912.F.3.13 : Calculate the total amount paid for the life of a loan for a house including the down payment, points, fees, and interest.
  • MA.912.F.3.14 : Compare the total cost for a set purchase price using a fixed rate, adjustable rate, and a balloon mortgage.
  • MA.912.F.3.15 : Interpret the legal description using the metes and bounds; lot and block (plat); government survey; and monument methods.
  • MA.912.F.3.16 : Estimate real property value using the sales comparison approach, cost-depreciation approach, or the income capitalization approach.
  • MA.912.F.3.17 : Compare interest rate calculations and annual percentage rate calculations to distinguish between the two rates.
Cluster Information
Number:
MA.912.F.3
Title:
Loans and Financing
Type:
Standard
Subject:
X-Mathematics (former standards - 2008) - Archived
Grade:
912
Body of Knowledge
Financial Literacy
Cluster Access Points

This cluster includes the following Access Points.

  • MA.912.F.3.In.a : Identify wise consumer strategies for cash purchases, such as counting change, rounding up, and adding the tax.
  • MA.912.F.3.In.b : Identify advantages and disadvantages of using alternate forms for payment, such as checks, gift cards, debit cards, and credit cards.
  • MA.912.F.3.In.c : Identify finance charges as extra amounts added to cost of items that are not paid for on time.
  • MA.912.F.3.In.d : Recognize that deferred payments result in extra charges, such as increased interest rates.
  • MA.912.F.3.In.e : Identify reasons for paying bills on time and the effects of late payments or nonpayment.
  • MA.912.F.3.In.f : Identify resources and strategies for purchasing costly items, such as a car and a house.
  • MA.912.F.3.Su.a : Use wise consumer strategies for paying with cash, such as rounding to the next dollar.
  • MA.912.F.3.Su.b : Identify examples of alternate forms of payment, including debit cards, checks, gift cards, and credit cards.
  • MA.912.F.3.Su.c : Identify the effects of not paying bills on time.
  • MA.912.F.3.Pa.a : Recognize that a predetermined amount of money can be used to pay for an item in common purchasing situations.
Cluster Resources

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