Real Estate Lesson

MONTHLY PAYMENTS


FOCUS OF LESSON

NCTM STANDARDS



OBJECTIVES




REAL ESTATE AND MORTGAGE PAYMENT
  1. Load Netscape
  2. Link to HOUSTON REAL ESTATE ONLINE
  3. Select an area of Houston from which you would like to purchase a house.
  4. Select "Houston Area Listing" found by scrolling to the bottom of the page.
  5. Select "Mortgage Calculator".  Here you will type in the price of the house you selected and a current rate of interest. Now use the "mortgage calculator" to calculate the amount of monthly payments for 30, 25, 20 and 15 years.
  6. Choose an independent variable and organize these four data sets in a chart, for example

  7. $89,000 house at %8.25 interest
    Number of years Amount of monthly payment

    18 years

    $975.25

    10 years

    $1107.92

  8. Now graph these data points using whatever scales appropriate to display the information in an interpretable form.


ANALYSIS AND INTERPRETATION

  1. Find a function which best models these data points and write its equation.

  2. Describe the function you chose and explain why you think it is appropriate.

  3. Estimate from your graph the amount of monthly payment one would have to make on a 22 year and 12 year loan.

  4. Now use your function to verify that your estimates are reasonable

EXTENSION

Use a TI-82 or 83 calculator to run a regression analysis on your data set and compare the regression equation with the function you found.


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