MM255M3-1: Analyze the results of mathematical calculations to make financial decisions.
GEL-2.03: Solve real-world problems using mathematics.
PC-2.1: Achieve goals through planning and prioritization.
It is time to demonstrate what you have learned in this module. You have calculated simple interest and compound interest problems. You have found the future value and present value of annuities along with sinking fund payments. You have also practiced finding mortgage payments and the total cost of a mortgage.
Businesses need to purchase equipment, whether it is computers to run their online platforms or backhoes to dig out the foundations on new houses. They may choose to buy it now and take out a loan that would cost them interest or they could put aside money today and earn enough interest on their investment to be able to purchase the equipment in the future.
You have set a goal for your business to purchase three pieces of equipment. Find three pieces of equipment for sale online that will help your business work more efficiently or effectively. Include the URLs. Prioritize the three pieces of equipment that you have chosen in the order you think you need them and the urgency in which you need them.
Save for the equipment. Select between 5-10 years to save to purchase each piece of equipment. In order to have the money saved for your first priority piece of equipment sooner, choose the shortest number of years for the #1 piece of equipment and the longest number of years for the #3 piece of equipment. Choose an interest rate between 2-10% for each piece of equipment.
Next, open a blank Excel spreadsheet and type in the purchase price of the equipment you have chosen. Use Excel PV formula to calculate what you put in today to buy equipment in the future. Watch this video to show you how to do this.
Using a Word document, write several sentences to describe the equipment and how it will help your business. Include the number of years and interest rate you have chosen as well as the results Excel gave you. Copy and paste the Excel spreadsheet calculations into the Word document.
Submit the Written Assignment portion of the Competency Assessment by clicking on Assignments along the top menu bar of the course, then Competency Assessment Dropbox.