unit c: personal finance half course v
TRANSCRIPT
V-C-2
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
HALF COURSE V
The intent of this unit is to have students become aware of why wehave different types of insurance and what is involved inpurchasing a house and obtaining a mortgage.
Specific Learning OutcomesC-1 Solve problems involving different types of insurance.
C-2 Solve problems involving mortgages.
C-3 Describe the costs involved in purchasing a home.
C-4 Interpret the Gross Debt Service Ratio to determine theeconomic feasibility of a home purchase.
Unit C: Personal Finance
Hours: 11
General Learning Outcome:
Demonstrate an awareness of and show theability to solve consumer problems involvinginsurance, mortgages, and loans. (Loans arestudied in Senior 3 Consumer Mathematics.)
V-C-3
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
Instructional Materials • Essentials in Mathematics 12
• Blackline Masters
• scientific calculator
• spreadsheet program
PERSONAL FINANCE
V-C-4
General OutcomeDemonstrate an awarenessof and show the ability tosolve consumer problemsinvolving insurance,mortgages, and loans.
Specific Outcome(s)C-1 solve problems
involving differenttypes of insurance
Types of insurance that can be examined here includea) renter’s and homeowner’sb) lifec) healthd) dentale) eye caref) long-term disability
Note: The focus of our explorations will be life andproperty insurance. New vocabulary and concepts relatingto insurance are introduced. The definitions are in theEssentials of Mathematics 12 text, but students will needto increase their familiarity with them through discussionand brainstorming. Points for discussion can include• the need for life insurance• how to decide how much insurance is needed• different types of life insurance • terminology—deductible, premium, policy, face-value,
beneficiary• why smokers pay more for life insurance• why people pay more for life insurance as they age
ExampleA female smoker aged 27 buys a $100,000.00, 10-year termlife insurance policy. What will she pay per month?
SolutionUse life insurance tables in the Student Handbook.Insurance rates are given here per $1000.00; hence,
100 x $1.34 + $75.00 = $209.00 per annum $209.00 x 0.09 = $18.81 per month
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
PRESCRIBED LEARNINGOUTCOMES
SUGGESTIONS FOR INSTRUCTION
!! Communications Patterns!! Connections !! Problem Solving!! Number Sense Reasoning!! Organization and Technology
Structure Visualization
Note: Material from this unit should be incorporatedinto the Career/Life Project in Half Course VI. It isrelevant to personal lifestyle, budgeting, homeownership, and the like.
— continued
V-C-5
ProblemA male smoker aged 25 buys a $50,000 whole-life policy.a) What will he pay per year?b) What will he pay per month?c) What is the total difference in premium over a year
when you pay per month?d) Why do people like to pay on a monthly basis?e) How much less would this person pay per year if he did
not smoke?
PrintSenior 4 Consumer
Mathematics (45S)Part V: A Course forDistance Learning.Winnipeg, MB: ManitobaEducation, Training andYouth, 2002.— Module 1, Lessons 1, 2
Baron, C., et al. Essentials ofMathematics 12. Victoria,BC: British ColumbiaMinistry of Education,2003. [ISBN 0-7726-4997-9]
Canada Mortgage andHousing Corporation(CMHC/SCHL). AConsumer Guide andWorkbook: Home BuyingStep by Step. Toronto,ON: CMHC, 1998-2000.[1-800-668-2642]
Pamphlets available fromthe Insurance Bureau ofCanada [1-800-377-6378]:Insurance: Who Needs It?Home InsuranceExplained
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
SUGGESTED LEARNINGRESOURCES
SUGGESTIONS FOR ASSESSMENT
V-C-6
C-1 solve problemsinvolving differenttypes of insurance– continued
Notes: The $1.34 comes from the body of the table. The$75.00 is a policy factor added to all annual premiums.Monthly payments are calculated by multiplying theannual premium by 0.09. Sometimes monthly paymentsare referred to as “autopay” and are deducted directly fromyour bank account.
Discuss the need for homeowner’s insurance.• How do you decide how much insurance you need?• Why is it important to review with the insurance broker
exactly what is covered?• Discuss the two basic forms of homeowner’s insurance:
standard and comprehensive.• Discuss the need for insurance for the contents of
condominiums and apartments.
Note: The location of the home affects how much propertyinsurance costs.• Area 1: homes within the city limits• Area 2: Protected: outside the city, but within 300 m of
a fire hydrant• Area 3: Semi-protected: outside areas 1 and 2 but
within 13 km of a fire hall• Area 4: Unprotected: homes located more than 13 km
from a fire hallExampleDiane and Rod have a home in Winnipeg worth $125,000.Find the cost of a homeowner’s comprehensive policy with:a) a $500 deductibleb) a $200 deductible
SolutionUsing the premium table in the Blackline Masters:a) The premium for $125,000.00 is $510.b) To reduce the deductible to $200, the premium is
increased by 10%: $510 + $51 = $561.
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
PRESCRIBED LEARNINGOUTCOMES
SUGGESTIONS FOR INSTRUCTION
!! Communications Patterns!! Connections !! Problem Solving!! Number Sense Reasoning!! Organization and Technology
Structure Visualization
V-C-7
Problems1. What is the cost for homeowner’s insurance for a house
that has a replacement cost of $120,000?
2. What are some of the factors in determining the cost ofhomeowner’s or tenant’s insurance?
3. A couple has a house they would like to insure for$250,000.00. They have not had any claims in the pastand would like a comprehensive package. If they get a$500.00 deductible, what will they pay for theinsurance?
4. Have students find out what it would cost them to haveinsurance for an apartment in which they might live.Discuss what the contents would be worth, then havethem calculate the cost of the insurance.
5. Calculate the cost of obtaining health, dental, and eyecare insurance. Calculate the cost of life insurance for awhole-life policy of $50,000 for yourself.
Other Invite a life insurance agent
to speak to your students.
Invite a homeowner’sinsurance agent to speakto your students.
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
SUGGESTED LEARNINGRESOURCES
SUGGESTIONS FOR ASSESSMENT
V-C-8
C-2 solve problemsinvolving mortgages
Types of mortgages that can be examined here includea) closedb) openc) convertibled) fixed-ratee) variable-rate
Discuss the different types of mortgages available.
Discuss which type of mortgage is suitable for differentpeople.
Be able to calculate the following items, using a calculatorand/or spreadsheet programming:• payment• interest• principal• unpaid balance• owner’s equity• monthly payments at a particular rate over different
time periods• monthly payments of different rates over a particular
time period• difference between monthly payment and bi-weekly
payment at a particular rate over a specified timeperiod
Students may develop a template, using appropriate termsand formulas to solve the problems.
Note: Work with the mortgage calculations can be doneeasily on a spreadsheet program. It is advised thatstudents first use the Owner’s Equity form found in theBlackline Masters to manually work with the calculations.Following these simple steps will help:a) enter the unpaid balance (mortgage) and the owner’s
equity (down payment)b) find the monthly payment using the amortization tablec) find the interest for that month using the formula
unpaid balance x rate12
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
PRESCRIBED LEARNINGOUTCOMES
SUGGESTIONS FOR INSTRUCTION
Communications !! Patterns!! Connections !! Problem Solving!! Number Sense !! Reasoning!! Organization and !! Technology
Structure Visualization — continued
V-C-9
Problems1. What is the difference between an open and a closed
mortgage?
2. If you obtain a mortgage of $80,000 for 20 years at arate of 6.75%, find the monthly payment. What wouldthe monthly payment be if you borrowed this amountfor 15 years?
3. How much interest would be paid for the first andsecond months in (2) above?
PrintSenior 4 Consumer
Mathematics (45S)Part V: A Course forDistance Learning.Winnipeg, MB: ManitobaEducation and Training,2000.— Module 1, Lessons 3, 4
Pamphlets from a bank onmortgage types
InternetExperiment with mortgage
calculators on majorbank websites:<www.rbc.com><www.cibc.com><www.scotiabank.com>
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
SUGGESTED LEARNINGRESOURCES
SUGGESTIONS FOR ASSESSMENT
V-C-10
C-2 solve problemsinvolving mortgages– continued
C-3 describe the costsinvolved in purchasinga home
d) subtract this interest from the monthly payment to getthe principal
e) add the principal to the owner’s equityf) subtract the principal from the unpaid balanceg) using this new unpaid balance, go back to step (c)
Students should notice that the interest paid actually goesdown slightly each month, and the amount of principalincreases. This is due to the unpaid balance or amount ofthe mortgage going down each month.
Discuss the different terms that are related to these topics:down payment, inspection fee, mortgage, application fee,service charges, legal fee, closing cost, assets, debt-equityratio, liabilities.
Discuss why there are additional costs besides the costof the house itself. These are “one-time” costs only.
ExampleThe Jones family lives in Portage la Prairie and isrelocating to Winnipeg. They purchase a house for$140,000.00 and hire a mover to move their belongings.The mover charges $1700.00. A lawyer is hired to lookafter legalities for a fee of $900.00. An appraisal is done ofthe property for a cost of $425.00. The possession date isJuly 9, with the first payment due on July 15. The interestadjustment is $105.00. Property taxes are $2150.00, forwhich the Jones family has agreed to pay for the months ofJuly-December.
Before moving, the Jones family wants to redo the yard for$2500.00, and replace the stove and fridge for $630.00 and$825.00, respectively. They have agreed to split the cost ofthe appliances with the sellers. They want to replace thedrapes with vertical blinds for $1200.00 and paint thebedrooms at a cost of $680.00. The cost to hook up thephone is $25.00 and to activate the natural gas is $55.00.Their annual premium for insurance increases to $540.00from $325.00 per year and they pay the additional for theremaining six months.
Provide students the chart (Costs in Purchasing a Home)given in the Blackline Master section when answeringquestions on additional costs.
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
PRESCRIBED LEARNINGOUTCOMES
SUGGESTIONS FOR INSTRUCTION
!! Communications Patterns!! Connections Problem Solving!! Number Sense !! Reasoning!! Organization and Technology
Structure Visualization
— continued
V-C-11
Problems1. Describe six additional costs in purchasing a home,
besides the cost of the home itself.
2. If property taxes have been paid for the year ($3085.00)and the purchasers of a home take possession of theproperty in August, what portion of the property taxeswill be paid by the purchaser?
3. If a buyer increases the homeowner’s insurancepremium to $450.00 from $350.00 per year and pays forseven of the 12 months in the year, what is theadditional cost for the buyer?
PrintSenior 4 Consumer
Mathematics (45S)Part V: A Course forDistance Learning.Winnipeg, MB: ManitobaEducation, Training andYouth, 2002.— Module 1, Lesson 6
Essentials of Mathematics12.Chapter 1: PersonalFinance, Exploration 3
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
SUGGESTED LEARNINGRESOURCES
SUGGESTIONS FOR ASSESSMENT
V-C-12
C-3 describe the costsinvolved in purchasinga home– continued
Solution
In the above table:• Home Insurance: ($540.00 – $325.00)(6/12) = $107.50• Prepaid Taxes: ($2150.00)(6/12) = $1075.00• Appliances: ($630.00 + $825.00)(6/12) = $727.50
Appraisal Fees $ 425.00
Inspection Costs $
Property Survey $
Insurance—High Ratio Mortgage $
Home Insurance $ 107.50
Interest Adjustment $ 105.00
Prepaid Property Taxes and Utilities $ 1,075.00
Legal Fees and Disbursements $ 900.00
Sales Tax $
Moving Expenses $ 1,700.00
Service Charges $ 80.00
Immediate Repairs $ 2,500.00
Appliances $ 727.50
Decorating Costs $ 1,880.00
Total Additional Costs $ 9,500.00
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
PRESCRIBED LEARNINGOUTCOMES
SUGGESTIONS FOR INSTRUCTION
!! Communications Patterns!! Connections Problem Solving!! Number Sense !! Reasoning!! Organization and Technology
Structure Visualization
V-C-13
Problems (continued)4. The Smiths live in Winnipeg and Mr. Smith has
accepted a job in Brandon.
• They purchased a house in Brandon for $150,000,and hired a mover to move their belongings. Themoving charges are $1800.
• Their lawyer fees are $1000.• An appraisal was done on their property for a fee of
$140. A survey of the property was done for a fee of$375. They called in a house inspector to assess thecondition of the new house. The inspector charged$400 and recommended that the siding be replaced.
• The Smiths’ possession date is August 5th. Theinterest adjustment is $457. Annual property taxesare $2850, and the Smiths agree to pay for the fivemonths from August to December.
• Before moving in, the Smiths want to build a fenceand re-side the house at a cost of $5000, replace thecarpet in the living room at a cost of $4200, andpaint the master bedroom and the kitchen at a costof $650.
• The stove has to be replaced at a cost of $850.• They increase their annual insurance premium to
$590 from $425 per year and pay the additionalamount for the remaining five months of the policyyear.
• The cost to hook up the phone is $65 and the cost toactivate the natural gas is $45.
Guest speakers—buyer,real-estate salesperson
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
SUGGESTED LEARNINGRESOURCES
SUGGESTIONS FOR ASSESSMENT
V-C-14
C-4 interpret the GrossDebt Service Ratio todetermine theeconomic feasibility ofa home purchase
Affordable Housing• discuss the importance of buying a home within your
financial means• discuss the impact of the additional expenses on home
affordability
Gross debt service ratio =
x 100
For the preceding home purchase activity, either providestudents with the table (see Blackline Masters), or havethem create and save a template on the computer.
ExampleA person decided to buy a house worth $85,000.00. Thedown payment will be $6000.00, the monthly propertytaxes are $120.00, and the heating costs are $110.00 permonth. Calculate the maximum affordable price, themonthly mortgage payment, and the gross debt ratio if thebank will finance the house at 7.50% for 25 years. Thegross monthly income is $2500.00.
This formula will help you determine the price ofthe home you can afford.
(See page V-C-16.)
actual monthly mortgage payment +property taxes + heating
gross monthly income
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
PRESCRIBED LEARNINGOUTCOMES
SUGGESTIONS FOR INSTRUCTION
!! Communications Patterns!! Connections Problem Solving!! Number Sense !! Reasoning
Organization and TechnologyStructure Visualization — continued
V-C-15
ProblemKaren wants to buy a house worth $90,500.00. She makesa down payment of $4000.00. Monthly property taxes are$165.00 and heating costs are $95.00 per month. Calculatethe maximum affordable price, the monthly mortgagepayment, and the gross debt service ratio if the bank willfinance the house at 6.5% for 25 years. Karen’s grossmonthly income is $2800.00.
PrintSenior 4 Consumer
Mathematics (45S)Part V: A Course forDistance Learning.Winnipeg, MB: ManitobaEducation, Training andYouth, 2002.— Module 1, Lesson 5
Essentials of Mathematics12.Chapter 1: PersonalFinance, Exploration 3
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
SUGGESTED LEARNINGRESOURCES
SUGGESTIONS FOR ASSESSMENT
V-C-16
C-4 interpret the GrossDebt Service Ratio todetermine theeconomic feasibility ofa home purchase– continued
This table is based on 25-year amortization. The figuresused in this table do not necessarily reflect current marketrates.
Note: The table is available as a Blackline Master.
Interest Rate Factor Table
Rate Factor Rate Factor Rate Factor
6.0%6.5%7.0%7.5%
0.006400.006700.007000.00732
8.0%8.5%9.0%9.5%
0.007630.007950.008280.00861
10.0%10.5%11.0%11.5%
0.008940.009280.009630.00997
The formula: Your calculations:Gross monthly household income $ 2,500.00Multiply by 32% x 0.32 Total affordable household expenses = $ 800.00Subtract
Monthly property taxes – 120.00Monthly heating costs – 110.00One half of condo/strata fees (if applicable) –
Monthly mortgage payment your household can afford: = $ 570.00To calculate total mortgage amount, divide by estimated interest rate factor which corresponds to your interest rate (see table below). 0.00732
Maximum amount of mortgage you can afford = $77,868.85Add your cash down payment + 6,000.00Your maximum affordable price = $83,868.85Actual mortgage payment(= 0.00732 x [$85,000.00 – $6,000.00]) $ 578.28Gross debt service ratio 32.3%
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
PRESCRIBED LEARNINGOUTCOMES
SUGGESTIONS FOR INSTRUCTION
!! Communications Patterns!! Connections Problem Solving!! Number Sense !! Reasoning
Organization and TechnologyStructure Visualization
V-C-17
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
SUGGESTED LEARNINGRESOURCES
SUGGESTIONS FOR ASSESSMENT
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
Blackline Masters V-C-21
Table 1: 10-Year Term
Term PlusMale Non-Smoker Female Non-Smoker Male Smoker Female SmokerIssue Rate per $1,000 Issue Rate per $1,000 Issue Rate per $1,000 Issue Rate per $1,000
AGE$100,000$249,999
$250,000$499,999
$500,000$3,000,000
$100,000$249,999
$250,000$499,999
$500,000$3,000,000
$100,000$249,999
$250,000$499,999
$500,000$3,000,000
$100,000$249,999
$250,000$499,999
$500,000$3,000,000
2021222324
0.850.850.850.850.85
0.810.810.810.810.81
0.770.770.770.770.77
0.800.800.800.800.80
0.760.760.760.760.76
0.730.730.730.730.73
1.431.431.431.431.43
1.361.361.361.361.36
1.301.301.301.301.30
1.321.321.321.321.32
1.251.251.251.251.25
1.201.201.201.201.20
2526272829
0.850.860.870.880.89
0.810.820.830.840.85
0.770.780.790.800.81
0.800.800.800.800.80
0.760.760.760.760.76
0.730.730.730.730.73
1.431.471.521.561.61
1.361.401.441.491.53
1.301.341.391.421.46
1.321.331.341.351.36
1.251.271.281.291.30
1.201.211.221.231.24
3031323334
0.900.961.021.081.14
0.860.910.971.031.08
0.820.870.930.981.04
0.800.860.920.981.04
0.760.820.870.930.99
0.730.780.840.890.95
1.651.781.912.052.18
1.571.691.821.952.07
1.511.621.741.861.98
1.381.471.571.671.77
1.311.401.501.581.68
1.251.341.431.521.62
3536373839
1.201.341.481.621.76
1.141.271.411.541.67
1.091.221.351.471.60
1.101.171.241.311.38
1.051.111.181.241.31
1.001.061.131.191.26
2.312.602.883.173.45
2.202.462.743.013.28
2.102.372.622.883.15
1.872.022.182.332.49
1.781.932.072.212.37
1.711.841.982.122.27
4041424344
1.902.062.222.382.54
1.811.962.112.262.41
1.731.872.022.172.31
1.451.561.671.781.89
1.381.481.591.691.80
1.321.421.521.621.72
3.744.224.715.195.68
3.554.024.484.935.39
3.403.844.284.735.17
2.642.903.173.433.70
2.512.763.013.263.51
2.402.642.883.123.37
4546474849
2.703.033.363.694.02
2.572.883.193.513.82
2.462.763.063.363.66
2.002.232.462.692.92
1.902.122.342.562.77
1.822.032.242.452.66
6.166.607.047.487.92
5.856.276.697.117.52
5.616.016.406.817.21
3.964.495.025.546.07
3.764.274.765.275.76
3.614.084.575.055.52
5051525354
4.354.885.415.946.47
4.134.645.145.646.15
3.964.444.925.415.89
3.153.403.653.904.15
2.993.233.473.713.94
2.873.093.323.553.78
8.369.26
10.1611.0711.97
7.948.809.66
10.5211.37
7.618.439.25
10.0710.89
6.607.247.888.519.15
6.276.887.488.098.69
6.016.597.177.748.33
5556575859
7.007.608.208.809.40
6.657.227.798.368.93
6.376.927.468.018.55
4.404.915.425.936.44
4.184.665.155.636.12
4.004.474.935.405.86
12.8713.6014.3215.0515.77
12.2312.9113.6114.3014.98
11.7212.3813.0413.7014.36
9.7910.5211.2411.9712.69
9.319.99
10.6811.3712.06
8.919.57
10.2310.8911.55
6061626364
10.0011.6013.2014.8016.40
9.5011.0212.5414.0615.58
9.1010.5612.0113.4714.92
6.957.868.779.68
10.59
6.607.478.339.20
10.06
6.327.157.988.819.64
16.5018.7020.9023.1025.30
15.6817.7719.8621.9524.04
15.0217.0219.0221.0223.02
13.4214.8716.3217.7819.23
12.7514.1215.5116.8918.27
12.2113.5314.8516.1817.50
65 66* 67* 68* 69*
18.0019.6021.1022.8024.40
17.1018.6220.1421.6623.18
16.3817.8419.2920.7522.20
11.5012.4113.3214.2315.14
10.9311.7912.6513.5214.38
10.4711.2912.1212.9513.78
27.5029.7031.9034.1036.30
26.1328.2230.3132.4034.49
25.0327.0329.0331.0333.03
20.6822.1323.5825.0426.49
19.6521.0222.4123.7825.17
18.8220.1421.4622.7824.10
70* 71* 72* 73* 74*
26.0027.6029.2030.8032.40
24.7026.2227.7429.2630.78
23.6625.1226.5728.0329.48
16.0516.9617.8718.7819.69
15.2516.1116.9817.8418.71
14.6115.4316.2617.0917.92
38.5040.7042.9045.1047.30
36.5838.6740.7642.8544.94
35.0437.0439.0441.0443.04
27.9429.3930.8432.3033.75
26.5427.9229.3030.6832.07
25.4226.7538.0729.3930.71
Add policy fee of $75 per yearSemi-annual payment (multiply annual premium by 0.52)Monthly payment (multiply annual premium by 0.09)
Table 2: Whole-Life Insurance
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
V-C-22 Blackline Masters
WHOLE-LIFEMale
Non-SmokerFemale
Non-SmokerMale
SmokerFemaleSmoker
MaleUnder 18
FemaleUnder 18
Issue Rateper $1,000
Issue Rateper $1,000
Issue Rateper $1,000
Issue Rateper $1,000
Issue Rateper $1,000
Issue Rateper $1,000
IssueAge
PremiumRate
PremiumRate
PremiumRate
PremiumRate
IssueAge
IssueAge
PremiumRate
PremiumRate
IssueAge
1819202122
3.503.543.603.964.07
2.822.852.893.043.20
4.314.414.514.724.93
3.133.203.263.443.62
1819202122
01234
1.751.781.801.891.98
1.531.561.591.631.67
01234
2324252627
4.174.284.384.614.82
3.353.513.663.864.05
5.155.365.575.886.19
3.813.994.174.414.66
2324252627
56789
2.052.122.242.352.47
1.711.751.821.891.97
56789
2829303232
5.055.265.465.766.03
4.254.444.644.905.16
6.496.807.117.568.01
4.905.155.395.726.04
2829303232
1011121314
2.582.712.833.013.19
2.052.162.272.342.41
1011121314
151617
3.313.423.46
2.502.582.66
151617
3334353637
6.306.597.117.327.78
5.415.675.936.316.70
8.458.909.35
10.0410.74
6.376.697.027.507.98
3334353637
3839404142
8.258.719.289.75
10.32
7.087.477.858.428.99
11.4312.1312.8213.8614.90
8.478.959.43
10.1410.85
3839404142
Add policy fee of $75.00 per year.
4344454647
10.9011.4812.4012.8113.55
9.5510.1210.6911.2111.73
15.9516.9918.0319.1520.26
11.5512.2612.9713.6814.38
4344454647
Semi-annual payment (multiply annualpremium by 0.52)Monthly payment (multiply annualpremium by 0.09)
4849505152
14.2815.0216.3416.7017.63
12.2612.7813.3014.0314.76
21.3822.4923.6125.0626.52
15.0915.7916.5017.4418.38
4849505152
5354555657
18.5619.5121.1521.7923.17
15.4916.2216.9517.9318.91
27.9729.4330.8832.7334.57
19.3220.2621.2022.3923.58
5354555657
5859606162
24.5325.8927.7029.3231.39
19.8920.8721.8523.2124.57
36.4238.2640.1142.4044.70
24.7825.9727.1628.7130.25
5859606162
6364656667
33.4535.5237.5839.7341.95
25.9327.2928.6530.0831.59
46.9949.2951.5854.4856.60
31.8033.3434.8936.2937.74
6364656667
6869707172
44.3346.8349.4552.2255.15
33.1734.8236.5738.3940.31
58.8161.1263.5165.9868.56
39.2540.8242.4544.1545.91
6869707172
737475
58.2361.5064.94
42.3344.4546.67
71.2374.0176.89
47.7549.6651.65
737475
Table 3: Cash Surrender Values
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
Blackline Masters V-C-23
WHOLE-LIFEMALE
Cash Surrender Value per $1,000 of Sum AssuredFEMALE
Cash Surrender Value per $1,000 of Sum AssuredIssue Age Policy Issue Age
20 25 30 35 40 45 50 55 60 65 70 Year 20 25 30 35 40 45 50 55 60 65 7000012
00013
00014
00026
00038
0005
14
0007
18
0009
23
000
1128
000
1535
000
1841
12345
00011
00012
00013
00015
00027
0004
11
0005
14
0007
19
0009
24
000
1230
000
1637
4678
10
68
101315
811141821
1115192428
1420253036
2332404958
2940516273
3650647791
44617894
111
547494
113133
6487
110133156
6789
10
34679
468
1012
69
111416
812151922
1116202429
1825324047
2333425160
3042536576
3852678195
486583
100118
5879
100121142
1417212428
2127344046
2937445260
3848586878
52688399
115
91124157190223
109145181217252
130168207246284
152193234275316
175218260303345
201245290335380
1112131415
1215182023
1722273237
2329364249
3038465563
4255688194
75103131160188
91122154185216
111146181216251
133171208246284
158199239280320
186231275319364
3339445055
5462697785
738699
112125
94110126142158
141167193219245
256289322355388
288324360396432
323362401439478
356397438479520
387430472515557
424469514558603
1617181920
2832374146
4450566369
59708091
102
7689
103116129
116138159181203
216244273301329
247278310341372
285320355390425
321359397434472
361401442482523
408453497542586
6371788694
96107117128139
140154169183198
181204226249272
284324363403442
405423440458475
451470489508527
499520541562582
544568592616640
587616646675705
626650673698726
2122232425
5259657178
788796
105114
114126138151163
149168188207226
237272306341375
348367387406425
393414435456477
448471494517540
498525551578604
555587618650682
627669710752793
105116127138149
154168183197212
217236254273292
312353393434474
458474490506522
493510528545563
546565583602621
603624645666687
664688712736760
734764793823852
756794841906
1,000
2627282930
8796
105114124
126139151163176
179195212228244
262297332367402
393411429446464
444463482502521
498519539560581
563586609632655
630657683710736
714746777809841
834876917959
1,000164179193208223
231250269288307
333374415456497
489504519534549
538554570585601
580598615633650
640659678697716
708729749770791
784808832856880
882911941970
1,000
-----
3132333435
136149161174186
192209225241258
276308340372404
419436453470487
482500518536554
540559578597617
602623644665686
678701724747770
762789815842868
873905936968
1,000
-----
242261280299318
348389429470511
511526540554569
564579594609624
617633649665681
668685703720738
735754773792811
812833854875896
904928952976
1,000
-----
-----
3637383940
202219235252268
287316345375404
421438455472489
505522539556573
571589607625643
636655674693712
707728749770791
798816839862885
894921947974
1,000
-----
-----
357395434472511
525539553567581
583598612626641
639654669684699
697713729745761
755773790808825
830849867886905
916937958979
1,000
-----
-----
-----
4142434445
295322350377404
421438455472489
506523540557574
590607624641658
661679696714732
732751770789808
812833853874895
908931954977
1,000
-----
-----
-----
525539553567581
595609623637651
655669684698713
714729745760775
777793809825841
843860878895913
924943962981
1,000
-----
-----
-----
-----
4647484950
421438455472489
506523540557574
591608625642659
675692710727744
750768786804821
827847866885904
916937958979
1,000
-----
-----
-----
-----
595609623637651
665679693707721
727741756770784
790805820835850
857872888904920
930948965983
1,000
-----
-----
-----
-----
-----
5152535455
506523540557574
591608625642659
676693711728745
761778795812829
839857875893911
923942962981
1,000
-----
-----
-----
-----
-----
665679693707721
735749762776790
799813828842856
865880895910925
936952968984
1,000
-----
-----
-----
-----
-----
-----
5657585960
591608625642659
676693711728745
762779796813830
846863880897915
929946964982
1,000
-----
-----
-----
-----
-----
-----
735749762776790
804818832846860
871885899914928
940955970985
1,000
-----
-----
-----
-----
-----
-----
-----
6162636465
676693711728745
762779796813830
847864881898915
932949966983
1,000
-----
-----
-----
-----
-----
-----
-----
804818832846860
874888902916930
943957971986
1,000
-----
-----
-----
-----
-----
-----
-----
-----
6667686970
762779796813830
847864881898915
932949966983
1,000
-----
-----
-----
-----
-----
-----
-----
-----
874888902916930
944958972986
1,000
-----
-----
-----
-----
-----
-----
-----
-----
-----
7172737475
847864881898915
932949966983
1,000
-----
-----
-----
-----
-----
-----
-----
-----
-----
944958972986
1,000
-----
-----
-----
-----
-----
-----
-----
-----
-----
-----
7677787980
932949966983
1,000
-----
-----
-----
-----
-----
-----
-----
-----
-----
-----
Every effort has been made to ensure the accuracy of the above values, but accuracyis not guaranteed. In the event of a discrepancy, the insurance policy governs.
Table 4: Tenant’s Package Policy
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
V-C-24 Blackline Masters
Tenant’s Package Policy ($500 deductible)All Areas – Manitoba
Coverage Amount Standard Form Comprehensive Form$25,000$30,000$35,000$40,000$45,000$50,000$55,000$60,000$65,000$70,000$75,000
158.00174.00199.00212.00235.00254.00272.00293.00315.00337.00359.00
200.00226.00252.00269.00298.00324.00346.00373.00400.00427.00454.00
Each additional $1,000 $4.50 $5.50
$200 deductible – Increase premium by 10%
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
Blackline Masters V-C-25
Tab
le 5
: Man
itob
a H
omeo
wn
er’s
In
sura
nce
Rat
es
Man
itoba
Hom
eow
ner’s
Insu
ranc
e R
ates
($50
0 de
duct
ible
)B
oeck
h C
alcu
lato
rM
etro
Win
nipe
gAr
ea 2
Area
3Ar
ea 4
Amou
ntSt
anda
rdC
ompr
ehen
sive
Stan
dard
Com
preh
ensi
veSt
anda
rdC
ompr
ehen
sive
Stan
dard
Com
preh
ensi
ve$
50,
000
$ 5
5,00
0$
60,
000
$ 6
5,00
0$
70,
000
$ 7
5,00
0$
80,
000
$ 8
5,00
0$
90,
000
$ 9
5,00
0$1
00,0
00$1
05,0
00$1
10,0
00$1
15,0
00$1
20,0
00$1
25,0
00$1
30,0
00$1
35,0
00$1
40,0
00$1
45,0
00$1
50,0
00$1
55,0
00$1
60,0
00$1
65,0
00$1
70,0
00$1
75,0
00$1
80,0
00$1
85,0
00$1
90,0
00$1
95,0
00$2
00,0
00
195
216
237
252
266
294
310
318
324
348
364
390
402
418
436
451
472
498
523
538
550
557
565
572
590
607
620
636
652
678
692
214
238
260
277
303
314
323
333
349
370
393
417
441
464
487
510
543
557
580
596
604
613
622
629
647
668
686
702
717
742
771
147
160
173
187
200
210
221
226
231
244
260
278
293
299
309
319
339
345
358
375
385
398
413
425
441
451
466
478
492
504
519
161
176
190
205
220
231
243
249
254
268
286
306
322
329
340
351
373
380
394
413
424
438
454
468
485
496
513
526
541
554
571
196
217
237
255
270
285
302
313
324
345
361
378
393
409
424
444
466
477
496
508
520
551
569
589
609
624
648
667
705
720
726
216
239
261
281
297
314
332
344
356
380
397
416
432
450
466
488
513
525
546
559
572
606
626
648
670
686
713
734
776
792
799
261
289
315
339
359
379
402
416
431
459
480
503
523
544
564
591
620
634
660
676
692
733
757
783
810
830
862
887
938
958
966
287
318
347
373
395
417
462
458
474
505
528
553
575
598
620
650
682
697
726
744
761
806
833
861
891
913
948
976
1032
1054
1063
Addi
tiona
l Am
ount
spe
r $10
00 c
over
age
Add:
$3.
15Ad
d: $
3.50
Add:
$2.
75Ad
d: 3
.03
Add:
$3.
55Ad
d: $
3.91
Add:
$4.
72Ad
d: $
5.19
$200
ded
uctib
le –
Incr
ease
pre
miu
m b
y 10
%
Table 6: Amortization Period of Mortgage Loan
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
V-C-26 Blackline Masters
Amortization Period of Mortgage Loan(Blended payment of principal and interest per $1,000 of loan)
Interest Rate 5 years 10 years 15 years 20 years 25 years4.00%4.25%4.50%4.75%5.00%5.25%5.50%5.75%6.00%6.25%6.50%6.75%7.00%7.25%7.50%7.75%8.00%8.25%8.50%8.75%9.00%9.25%9.50%9.75%
10.00%10.25%10.50%10.75%11.00%11.25%11.50%11.75%12.00%12.25%12.50%12.75%13.00%13.25%13.50%13.75%14.00%14.25%14.50%14.75%15.00%15.25%15.50%15.75%16.00%
$18.4018.5118.6218.7418.8518.9619.0719.1919.3019.4119.5319.6419.7519.8719.9820.1020.2120.3320.4520.5620.6820.8020.9121.0321.1521.2721.3821.5021.6221.7421.8621.9822.1022.2222.3422.4622.5822.7022.8222.9423.0723.1923.3123.4323.5623.6823.8023.9224.05
$10.1110.2310.3410.4610.5810.7010.8210.9411.0711.1911.3111.4311.5611.6811.8111.9412.0612.1912.3212.4512.5812.7112.8412.9713.1013.2413.3713.5013.6413.7713.9114.0414.1814.3214.4614.5914.7314.8715.0115.1515.2915.4315.5815.7215.8616.0016.1516.2916.44
$7.387.507.637.757.888.018.148.278.408.538.668.808.939.079.219.349.489.629.769.90
10.0510.1910.3310.4810.6210.7710.9211.0611.2111.3611.5111.6611.8211.9712.1212.2812.4312.5912.7412.9013.0613.2113.3713.5313.6913.8514.0114.1714.33
$6.046.176.306.446.576.716.846.987.127.267.417.557.707.847.998.138.288.438.598.748.899.059.209.369.529.689.849.99
10.1610.3210.4810.6510.8110.9811.1411.3111.4811.6411.8111.9812.1512.3212.4912.6712.8413.0113.1813.3613.53
$5.265.405.535.675.825.966.106.256.406.556.706.857.007.167.327.477.637.797.958.128.288.448.618.788.949.119.289.459.639.809.97
10.1410.3210.4910.6710.8511.0211.2011.3811.5611.7411.9212.1012.2812.4612.6412.8313.0113.19
*Interest compounded semi-annually. Actual payment amount may differ slightly.
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
Blackline Masters V-C-27
Comprehensive Coverage Broad Form Coverage
Homeowner’s Building Contents Building Contents
Collapse ! ! ! !
Collapse caused by weight of ice, snow, sleet ! ! ! !
Debris removal ! ! ! !
Escape of fuel oil ! ! ! !
Explosion ! ! ! !
Falling objects striking exterior of building ! ! ! !
Falling objects in interior of building ! ! ! !
Fire ! ! ! !
Fire department charges ! N/C ! N/C
Food freezer contents N/C ! N/C !
Freezing of heating, plumbing, or air conditioningsystems ! ! ! !
Glass breakage — $25.00 deductible ! ! ! !
Hail damage ! ! ! !
Impact of aircraft or land vehicle — includinginsured’s own vehicle ! ! ! !
Lawns, shrubs, trees, and plants ! N/C ! N/C
Lightning ! ! ! !
Melting of snow and ice on roof ! ! ! N/C
Mortgage rate protection ! N/C ! N/C
Moving to a new home N/C ! N/C !
Mysterious disappearance N/C ! N/C N/C
Riot ! ! ! !
Rupture of heating, plumbing, or air conditioningsystems ! ! ! !
Sewer back-up — $5000.00 ! ! N/C N/C
Smoke damage — including smoke from a fireplace ! ! ! !
Theft from the principal dwelling N/C ! N/C !
Theft of contents away from principal dwelling N/C ! N/C !
Theft from an unlocked car N/C ! N/C !
Transportation — excluding water craft and outboard motors ! ! ! !
Vandalism or malicious acts ! ! ! !
Water escape — including waterbeds ! ! ! !
Windstorm ! ! ! !
N/C—Not coveredThis chart is for information purposes only. For details, look at the wording in the insurance policy.
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
V-C-28 Blackline Masters
Mortgage Payments
Payment # Due Date Payment Interest Principal Unpaid
BalanceOwner’sEquity
1
2
3
4
5
Interest _____________________________________
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
Blackline Masters V-C-29
Initial Costs in Purchasing a Home
A B C
Appraisal Fee
Inspection Cost
Property Survey
Insurance—High Ratio Mortgage
Home Insurance
Land Transfer Tax
Prepaid Property Taxes and Utilities
Legal Fees and Disbursements
Sales Tax
Moving Expenses
Service Charge
Immediate Repairs
Appliances
Decorating Costs
Total Additional Costs
SENIOR 4 CONSUMER MATHEMATICS • Personal Finance (Half Course V)
V-C-30 Blackline Masters
This formula will help you determine the price of the home you can afford.
The Formula Your CalculationsGross Monthly Household IncomeMultiply by 32% (GDSR) x 0.32Total affordable household expenses Subtract
Monthly property taxes Monthly heating costs One half of condo/strata fees (if applicable)
Monthly mortgage payment your household can afford:
To calculate total mortgage amount, divide byestimated interest rate factor which corresponds to your interest rate (see table below).
Maximum amount of mortgage you can afford Add your cash down payment Your maximum affordable price
Actual mortgage payment= interest rate factor x actual total mortgageGross debt service ratio
Interest Rate Factor Table*Rate Factor Rate Factor Rate Factor6.0% 0.00640 8.0% 0.00763 10.0% 0.008946.5% 0.00670 8.5% 0.00795 10.5% 0.009287.0% 0.00700 9.0% 0.00828 11.0% 0.009637.5% 0.00732 9.5% 0.00861 11.5% 0.00997
*Based on 25-year amortization. Note: The figures used in this table do notnecessarily reflect current market rates.
actual monthly mortgage payment property taxes heatinggross monthly income
+ +=
=
–––
=
÷
=
=+