Personal Finance: Mortgage Payment Calculation
Core
Maths
Kindness · Curiosity · Determination
Mr Gale
W
h
i
l
e
y
o
u
w
a
i
t
…
A couple have a mortgage of £250 000 at 2%.
Their monthly payment is £1060
If the interest rate was 4% instead, how much
EXTRA per month would the payment be?
A)
£60
B)
£260
C)
£460
D)
£660
School Logo
In this presentation
Core
Maths
What is it?
What’s
covered?
Some
examples
What you get
out of it
School Logo
What is it?
USEFUL
In other subjects
USEFUL
In later life
A level 3 course for people who want to continue taking maths post GCSE
School Logo
What is it?
“When will I ever use this?”
Pragmatic
School Logo
What’s covered?
There are seven main themes in the course:
Analysis of
data
Personal
Finance
Estimation
Critical
Analysis
Normal
Distribution
Probability
Correlation &
Regression
School Logo
Now for a flavour of what we do
School Logo
The mortgage question
A couple have a mortgage of £250 000 at 2%.
Their monthly payment is £1060
If the interest rate was 4% instead, how much EXTRA per month
would the payment be?
A)
£60
B)
£260
C)
£460
D)
£660
Personal
Finance
The mortgage question
A couple have a mortgage of £250 000 at 2%.
Their monthly payment is £1060
If the interest rate was 4% instead, how much EXTRA per month
would the payment be?
A)
£60
B)
£260
C)
£460
D)
£660
Personal
Finance
Mortgage formula
Where
L = amount of the mortgage
r = mortgage interest rate as a decimal
n = the number of payments per year
t = the number of years to repay the mortgage
Personal
Finance
If all the current verified users
paid the $8 a month, how much
would that generate in a year?
https://www.republicworld.com/technology-news/social-media-news/how-much-would-elon-musks-twitter-
earn-if-all-blue-ticks-pay-8-this-will-surprise-you-articleshow.html
A)
$40 000 000
B)
$400 000 000
C)
$4 000 000 000
D)
$40 000 000 000
Estimation
https://www.republicworld.com/technology-news/social-media-news/how-much-would-elon-musks-twitter-
earn-if-all-blue-ticks-pay-8-this-will-surprise-you-articleshow.html
Estimation
If all the current verified users
paid the $8 a month, how much
would that generate in a year?
A)
$40 000 000
B)
$400 000 000
C)
$4 000 000 000
D)
$40 000 000 000
That coach’s tweet
Critical
Analysis
What’s going on
in this graph?
https://www.nytimes.com/2020/02/06/l
earning/whats-going-on-in-this-graph-
engagement-ring-costs.html
Critical Analysis
(and budgeting?)
How much did you
spend on your
engagement ring?
https://www.nytimes.com/2020/02/06/l
earning/whats-going-on-in-this-graph-
engagement-ring-costs.html
Critical Analysis
(and budgeting?)
Estimation/
budgeting
How much of a person’s
salary is typically spent on
an engagement ring?
A)
2 weeks
B)
1 month
C)
3 months
D)
6 months
Estimation/
budgeting
How much of a person’s
salary is typically spent on
an engagement ring?
A)
2 weeks
B)
1 month
C)
3 months
D)
6 months
Personal
Finance
Lucy earns £31 750 a year.
After tax that’s £2 114.53 p/m.
She is given a 5% pay rise.
How much extra is that per
month (after tax)?
A)
£5
B)
£88
C)
£106
D)
£1588
Personal
Finance
Lucy earns £31 750 a year.
After tax that’s £2 114.53 p/m.
She is given a 5% pay rise.
How much extra is that per
month (after tax)?
A)
£5
B)
£88
C)
£106
D)
£1588
What do you get?
Two exams, in May.
90 minutes, 60 marks.
UCAS points
A level 3 qualification
School Logo
This content discusses a personal finance scenario involving a couple with a $250,000 mortgage at 2% interest. It explains how to calculate the extra monthly payment amount if the interest rate increases to 4%. The formula for the mortgage calculation is also provided. Additionally, it mentions a question on the revenue generated if all verified users pay $8 per month.
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Presentation Transcript
Core Maths While you wait A couple have a mortgage of 250 000 at 2%. Their monthly payment is 1060 If the interest rate was 4% instead, how much EXTRA per month would the payment be? A) 60 B) 260 C) 460 D) 660 School Logo Mr Gale Kindness Curiosity Determination
Core Maths School Logo In this presentation What you get out of it Some examples What s covered? What is it?
School Logo What is it? A level 3 course for people who want to continue taking maths post GCSE USEFUL In other subjects USEFUL In later life
School Logo What is it? Pragmatic When will I ever use this?
School Logo What s covered? There are seven main themes in the course: Critical Analysis Personal Finance Analysis of data Estimation Normal Distribution Correlation & Regression Probability
School Logo Now for a flavour of what we do
Personal Finance The mortgage question A couple have a mortgage of 250 000 at 2%. Their monthly payment is 1060 If the interest rate was 4% instead, how much EXTRA per month would the payment be? A) 60 B) 260 C) 460 D) 660
Personal Finance The mortgage question A couple have a mortgage of 250 000 at 2%. Their monthly payment is 1060 If the interest rate was 4% instead, how much EXTRA per month would the payment be? A) 60 B) 260 C) 460 D) 660
Personal Finance Mortgage formula ? ? ? ???? ?? ????????? = ? ? 1 1 +? ? Where L = amount of the mortgage r = mortgage interest rate as a decimal n = the number of payments per year t = the number of years to repay the mortgage
If all the current verified users paid the $8 a month, how much would that generate in a year? A) $40 000 000 B) $400 000 000 C) $4 000 000 000 D) $40 000 000 000 Estimation https://www.republicworld.com/technology-news/social-media-news/how-much-would-elon-musks-twitter- earn-if-all-blue-ticks-pay-8-this-will-surprise-you-articleshow.html
If all the current verified users paid the $8 a month, how much would that generate in a year? A) $40 000 000 B) $400 000 000 C) $4 000 000 000 D) $40 000 000 000 Estimation https://www.republicworld.com/technology-news/social-media-news/how-much-would-elon-musks-twitter- earn-if-all-blue-ticks-pay-8-this-will-surprise-you-articleshow.html
That coachs tweet Critical Analysis
Whats going on in this graph? Critical Analysis (and budgeting?) https://www.nytimes.com/2020/02/06/l earning/whats-going-on-in-this-graph- engagement-ring-costs.html
How much did you spend on your engagement ring? Critical Analysis (and budgeting?) https://www.nytimes.com/2020/02/06/l earning/whats-going-on-in-this-graph- engagement-ring-costs.html
How much of a persons salary is typically spent on an engagement ring? A) 2 weeks B) 1 month C) 3 months D) 6 months Estimation/ budgeting
How much of a persons salary is typically spent on an engagement ring? A) 2 weeks B) 1 month C) 3 months D) 6 months Estimation/ budgeting
Lucy earns 31 750 a year. After tax that s 2 114.53 p/m. She is given a 5% pay rise. How much extra is that per month (after tax)? A) 5 B) 88 C) 106 D) 1588 Personal Finance
Lucy earns 31 750 a year. After tax that s 2 114.53 p/m. She is given a 5% pay rise. How much extra is that per month (after tax)? A) 5 B) 88 C) 106 D) 1588 Personal Finance
School Logo What do you get? A level 3 qualification Two exams, in May. 90 minutes, 60 marks. UCAS points Grade UCAS Points 20 16 12 10 6 A B C D E
