Mathematics Learning Area Report

As part of their final studies in 8ACE Maths, students completed a unit on financial maths, culminating in a practical investigation in which students were to go through the process of purchasing a car.

“Banks calculate their repayments with different calculations then the general simple and complex interest repayments, which makes the amortization calculator the most accurate for calculating costs.

Interest rates can vary between the type of loan and what your credit score is. Choosing a secured personal loan can result in a much lower rate, but it relies on the customer handing in an asset as collateral as incentive to pay off the loan.

Depending on the number of years you take to pay on a loan, interest can be vastly higher, but monthly repayments are much smaller. Another downside is that if you want to finish off the loan earlier, a fee incurs if the loan is paid of earlier, which varies of the amount paid.”
Alex Forgione, Year 8

“What I have learned from this project is how to calculate loans and interest rates, alongside balloon payments and monthly repayments. I have also learned how to compare banks and how to see which bank provides the best profit from loans. I have learnt to analyse loan agreements for hidden fees, differentiate between fixed and variable rates, and consider the impact of extended terms on affordability. This really tested my decision-making skills, using the importance of balancing short-term budget considerations with long-term financial implications.” Will Thompson, Year 8