Mathematics Essential Year 12

Mathematics Essential Year 12

Practical Application 2: The cost of buying a car.

Mathematics Essential Year 12

Practical Application 2: The cost of buying a car.

Type of assessment: Non-supervised

Working time: One week.

Marks allocation:

Part A: 18 marks

Part B: 20 marks + 2 marks for presentation

Total: 38 marks

Other instructions

All work must be done in the spaces provided.

Your submission must follow the investigation framework. You may attach additional pages if required and all work are to be numbered appropriately to show the question they belong to.

Incorrect answers without supporting reasoning cannot be awarded marks. When completed, scan and convert your work into a single PDF, all pages right way up and in correct order.

Submission:

You are required to submit the completed task into Moodle

Due date is shown in the Work Completion Calendar.

Students name Evan

SIDE Teacher's name

SUPERVISORS DECLARATION

I declare that this test paper has been completed by the student named above. This paper will not be counted for assessment if these conditions have not been met.

Supervisors name

Supervisors signature_ Date

Purpose of this Practical Application

The purpose of this activity is for you to investigate the cost of buying a car. For this assessment, we will assume that you will gain a realistic place of employment of your choice but with a few prescribed conditions as specified.

In Part A, you will be required to answer short questions relating to obtaining a car loan and in Part B you are required to explore other aspects of purchasing a car.

At all times you are to ensure that your language and presentation is suitable in the given context.

Assume that you have no car but will need to purchase one for you to be able to travel to and from your place of employment.

In part A you are asked to explore saving a deposit into a compound-interest based account.

In part B you are asked to explore to use of a compound interest based reducing balance loan.

Part A

Find below addresses of websites you will need to complete this assessment. You can choose the websites you wish to use, however note that you are required to show where you got your information from, giving the web address of your source.

Financial institutions are legally not allowed to lend more than what they believe you can afford to pay back. In this assessment we set that limit to 8% of your gross (before tax) monthly income.

Note that you are NOT required to generate a login and password with any website for this. These websites were checked and operating correctly on the 17/08/2023.

https://labourmarketinsights.gov.au/occupations/occupation-search

https://www.seek.com.au/career-advice/article/a-guide-to-salaries-in-your-industry https://www.glassdoor.com/Salaries/know-your-worth.htm

https://au.indeed.com/career/estimator/salaries

Decide and state the title of a realistic occupation you would like to have. [1 mark]

An occupation I would like to have is Panel beater/Collision Repairer.

What future prospects does that occupation have? Also state what valid and realistic

information did you base your response on? [2 marks]

The panel beating industry is projected to have a 10.6% increase in jobs over the stage of five years. Transportation will always be used, and yes we can minimise damage to machinery and other panel bearing technologies but damage will still occur meaning this job should have stable future prospects.

All jobs have some advantages and some disadvantages. List at least two of each for the occupation you chose above.

[2 marks]

Disadvantages: Lifting heavy objects, panel beaters have to be patient and precise to get a good outcome.

[2 marks]

Advantages: Practical, hands-on work, learn to repair panels, create worthwhile relationships and occupational opportunities.

Determine and state the gross annual income expected from that job (excluding any overtime and penalty rates). State two websites you based the income on. [2 marks]

According to Panelbeater Salary in Australia (August, 2023) SEEK the average annual gross income for a panel-beater is between $80,000-$100,000. According to Panel Beater Salary in Australia - Average Salary (talent.com) the average gross annual income for panel-beaters is $70,000.

Determine the gross (i.e. not your net or after tax pay) monthly income you would likely receive (excluding possible overtime and penalty rates). Do not consider taxation in this

question, it will be accounted for later in Part B. [2 marks]

Assuming I would earn $30/hr, and I would work an average of 40 hours a week I would be earning $1200 a week. X4 = $4800 a month X12 = $57,600

Find 8% of your gross monthly income. This will be your maximum amount per month you can use for the purpose of purchasing a car. [1 mark]

4800x0.08= $384

There are many monthly savings calculators online. Here is a calculator that uses compound interest in its calculations that we would like you to use:

https://moneysmart.gov.au/saving/savings-goals-calculator

Using this savings calculator, find out and state how much you will have in the account at the end of 2 years if you save the amount of 8% of your gross income each month for 2 years at 5%, calculated monthly. Use a starting amount of $0. [2 marks]

Saving 8% of my gross monthly income, each month, for 2 years at 5%, calculated monthly would result in $9712 saved at the end of the 2 years.

This amount will be your deposit amount for the purchase of your car if you save for a deposit first.

Now lets plan for a car loan;

Using the How much can I borrow? at the Moneysmart website [1 marks]

https://moneysmart.gov.au/loans/personal-loan-calculator#borrow

Choose a current interest rate of 6% p.a. and assume there is a $20 monthly bank fee. You get your affordable payment from question 5) above.

With your figures, you can borrow: $18828

Search for a suitable car online, one you like and would consider purchasing for real. However, for this assessment, the car must be valued at least $10 000. Provide all key

information about the car below. [3 marks]

1998 Holden Commodore VS $14500

Part B

There are many considerations that need to be made when deciding how much to spend on a car.

Extend your work in Part A including other expenses that affect your capacity to buy a car using a reducible balance loan. Make sure to show all relevant information so that your teacher can check your work! Unsubstantiated figures will not be awarded with marks.

Assume that you will be living on your own and paying a weekly rent of $400.

Think of and include in your calculations other realistic expenses that you can expect to encounter that will influence your spending decisions.

One such expense is taxation. Use the simple tax calculator for an estimate of your TAX at: https://www.ato.gov.au/calculators-and-tools/simple-tax-calculator/

Using appropriate websites, calculate the financing of a car purchase on a reducible interest loan. Remember to give website addresses and all key information.

Include a detailed and accurate calculation of the total cost of the loan over the whole lifetime of a reducing balance loan giving all key information.

As a conclusion, refer to your work in this assessment to state how much you feel it is reasonable for you to spend on purchasing a car and why.

Use the marking framework to follow a systematic process and provide calculations to back up your claims!

Marking framework Marks

Introduction

This is an introductory paragraph that describes the problem or situation in your own words but thoroughly enough not to miss anything vital. Explain what is required to complete the whole task. Do not attempt to give answers to the actual investigation in this section.

3

Plan your Strategy, Mathematics, Methods, and Tools

Identify and describe your strategy, Mathematical formulas and Methods required to complete the task.

3

Calculate as planned. Show all working

Produce the raw results by using the chosen Mathematics, Methods and Tools from the available information and data. This is where you apply your mathematical knowledge and strategies to obtain solutions. Do not analyse your answers here.

10

Interpret the meaning of your results in context

Analyse, observe and make conclusions based on your results in the context of the problem setting. Check that your answers and conclusions are reasonable. Look for patterns and relationships revealed in your work. Relate and explain your answers back to the original question.

3

Communicate your findings & conclusions, make recommendations Like an executive report to the upper management, this section provides main findings, conclusions, and recommendations, all based on your research completed in this investigation. Make sure that throughout your report, you have used language appropriate to the intended audience.

3

Introduction (Interpret the task and gather the key information) [3 marks]

This is an introductory paragraph that describes the problem or situation in your own words but thoroughly enough not to miss anything vital. Explain what is required to complete the whole task. Do not attempt to give answers to the actual investigation in this section.

In this investigation, formulas for interest, compound interest and loans will be used to determine whether or not I can take out a loan, buy a car and then repay the loan on the wages of a panel beater.

Plan your Strategy, Mathematics, Methods, and Tools [3 marks]

Identify and describe your strategy, Mathematical formulas and Methods required to complete the task.

Calculate as planned. Show all working [10 marks]

Produce the raw results by using the chosen Mathematics, Methods and Tools from the available information and data. This is where you apply your mathematical knowledge and strategies to obtain solutions. Do not analyse your answers here.

-$400/week rent -$50/week food. 52 weeks per year.

Estimated taxable income is $9,187 out of the yearly gross income of $57,600.

Two year net income= 2(57600-9187) = $96,826 (450x104) = $96,826 - $46,800 = $50,026

Car Cost=14500 - Deposit= 9712 = $4788 Loan needed for car.

Interpret the meaning of your results in context [3 marks]

Analyse, observe and make conclusions based on your results in the context of the problem setting. Check that your answers and conclusions are reasonable. Look for patterns and relationships revealed in your work. Relate and explain your answers back to the original question.

Communicate your findings & conclusions, make recommendations [3 marks]

Like an executive report to the upper management, this section provides main findings, conclusions, and recommendations, all based on your research completed in this investigation. Make sure that throughout your report, you have used language appropriate to the intended audience.

The End