Work in groups to create and compare financial models to solve a problem.
Consider the following example scenario:
Louis is thinking about his plans for after graduation. He is looking into the jobs he can get with different degrees or programs and what the starting salaries would be so that he can earn enough to get custody of his two younger sisters. What are Louis' options?
a) In your group, come up with a similar scenario for a person looking for a job so that they can afford requirements. These might be things like buying or renting an apartment or house, buying the required tools for an apprenticeship or small business, or paying for college.
b) What information would help to solve the problem?
c) In your group, decide what degree and job you think would suit your scenario, taking note of the average starting annual salary. Explain your choice.
d) Investigate the total money earned over at least 5 years for each annual pay option:
Compare and contrast the different salary options based on your chosen job using a linear model for each option, which you could represent using tables, graphs and/or equations. For example, a job that pays \$50000 per year could be modelled by y = 50000x.
e) Write a report that explains your choice of job and salary option that includes the following:
f) What other real-life factors could affect your choice of job and pay option?
g) If the person in your scenario had the following expenses:
Tax rate |
---|
15 \% on the first \$49020 of taxable income, plus |
20.5% on the next \$49020 of taxable income (on the portion of taxable income over \$49020 up to \$98040), plus |
26% on the next \$53,939 of taxable income (on the portion of taxable income over \$98,040 up to \$151,978), plus |
29% on the next \$64,533 of taxable income (on the portion of taxable income over \$151,978 up to \$216511), plus |
33% of taxable income over \$216511 |
Show how this would affect your chosen model.