Stage Three Plan

Stage 3 – Learning Plan

Summary of Key Learning Events and Instruction 1. Introduction of the essential question (E1. How can different loan types, duration and interest rate affect the total cost of the purchase of a vehicle? E2. What elements of loans should be taken into account when making a decision on a car loan? E3. How can loan selection affect your monthly budget?) WHERE and WHY 2. The lesson begins with students given the opportunity to shop online for the car of their dreams.  The task is for students to locate the car, provide a detailed description of the options they have selected and find the Manufacturers Suggested Retail Price for the car. (HOOK) 3. Direct instruction on down payments and how the amount of down payments can affect the total cost of the loan.  Students will work through practice problems and then students will calculate the down payment needed for a loan on their dream car and calculate the amount to be financed.  (EQUIP) E1, E2 4. Create a spreadsheet to calculate the down payment and the amount to be financed.  This spreadsheet will be revised as we go along to incorporate various components of the cost of the loans. (USE OF TECHNOLOGY) 5. Direct Instruction on calculation of monthly payments and finance charges.  Students will work through practice problems and then students will calculate the monthly payment and finance charges for their dream car.  (EQUIP) E3 6. Students will revise their spreadsheet project to include calculations for monthly payment and finance charges and link this to the calculations for the down payment so that they can run simulations of car loans by varying the down payment, interest rates, length of the loans and how the interest is compounded. Students will then check with two other students to see how they constructed their spreadsheets and to check if their spreadsheets are in agreement with one another on a set of sample problems (with answer key so they can self-check and diagnose problems). EVALUATE E1, E2, E3 7. Students will then write a short paper explaining how each variable might affect the total cost of the car. REVISE REFLECT RETHINK 8. Direct Instruction on monthly allocation of payments and finance charges (how much goes to interest and how much to principal).  Students will work through practice problems and then students will calculate the monthly allocation of payments and finance charges for their dream car.  (EQUIP) 9. Students will revise their spreadsheet project to include calculations for the monthly allocation of payments and finance charges and link this to the previous calculations. Students will then check with two other students to see how they constructed their spreadsheets and to check if their spreadsheets are in agreement with one another on a set of sample problems (with answer key so they can self-check and diagnose problems). EVALUATE 10. Direct Instruction on the effect of paying down the principle more quickly on the total cost of the loan.  Students will work through practice problems. (EQUIP) 11. Students will engage in a cost/benefit analysis of the various loans and defend their loan decision based on the financial trade-offs of accepting one loan over another. They may choose the medium for their presentation.  It may be either a paper, PowerPoint, iMovie, persuasive speech or they may propose another means of delivery.  (TAILORING) E1, E2, E3 The analysis must include: 1. The initial cost of at least three loan scenarios for the purchase of the same car 2. The total cost of the loans for each scenario 3. Impact on monthly budget for each scenario 4. The rationale for the loan offer chosen 5. An explanation of the cost benefit analysis undertaken including the major factors considered when making a final decision