# Standard 3: Describe the advantages and disadvantages of short-term and long-term purchases.

General Information
Number: MA.912.FL.3
Type: Standard
Subject: Mathematics (B.E.S.T.)
Strand: Financial Literacy

## Related Benchmarks

This cluster includes the following benchmarks.

## Related Access Points

This cluster includes the following access points.

## Access Points

MA.912.FL.3.AP.1
Compare simple and compound interest over time.
MA.912.FL.3.AP.2
Solve real-world problems involving simple and compound interest.
MA.912.FL.3.AP.4
Identify the relationship between simple interest and linear growth. Identify the relationship between compound interest and exponential growth.
MA.912.FL.3.AP.5
MA.912.FL.3.AP.6
Given a bill statement, identify the finance charge, interest rate and total amount due.
MA.912.FL.3.AP.7
Given two different student loan options, compare the advantages and disadvantages of each loan’s interest rate, monthly payment and total cost.
MA.912.FL.3.AP.8
Given the total cost of an item purchased using two different payment plans, calculate the total cost difference of the item between payment plans.
MA.912.FL.3.AP.9
Given two different mortgage loans, one 15-year and one 30-year, compare the advantages and disadvantages of each loan’s interest rate, monthly payment and total cost.
MA.912.FL.3.AP.10
Identify how short-term and long-term purchases, past payment history, and amount of debt may increase or decrease credit scores.
MA.912.FL.3.AP.11
Given several payment plans, with the monthly payment calculated, select the plan that will reduce the debt the quickest.

## Related Resources

Vetted resources educators can use to teach the concepts and skills in this topic.

## Formative Assessment

College Costs:

Students are asked to transform an exponential expression so that the rate of change corresponds to a different time interval.

Type: Formative Assessment

## Lesson Plans

How much is your time worth?:

This lesson is designed to help students solve real-world problems involving compound and continuously compounded interest. Students will also be required to translate word problems into function models, evaluate functions for inputs in their domains, and interpret outputs in context.

Type: Lesson Plan

The Cost of Credit: Financing an Automobile:

Students will play a Scratch program and make choices to simulate buying and financing an automobile to explore the cost of credit, in this lesson plan.

Type: Lesson Plan

## Student Resources

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## Parent Resources

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