Professional Documents
Culture Documents
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Purpose: For this project, you will research two colleges of your choice
where you will determine the total cost of four years of a college education.
After calculating the comprehensive cost for four years of schooling, you
will use compound interest to calculate the long-term cost of college loans.
Step 1: Choose two schools to research. You must choose one 4-year
private or public university. The second school can either be a four-year
college or a community college. Keep in mind that you can only earn an
associates degree at a community college, and will need to transfer to a 4-
year institution to earn a bachelors degree.
Choice 1:
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Choice 2:
______________________________________________________________
Step 2: Calculate the total cost of 4 years of schooling for both schools.
This total must include tuition, books, room & board. Read Springboard
24-1 pg. 371 to remember to account for the annual tuition increases for
private and public colleges. You must include these percentages into your
calculations.
Step 3: Assume that you will earn $10,000 per year from summer work
and part-time work. Deduct this amount from the total costs.
Step 4: Calculate how much money you will need to borrow each year to
cover the additional costs that will not be covered by work and
scholarships.
Step 5: Use the chart on the back of this page to decide which is the best
combination of loans to pay for college. Calculate how much money you will
need to pay pack to the loan institution after you graduate college. Assume
r nt
you will be paying these loans off for 10 years. Use A=P( 1+ )
n
1. What is Interest?
1st Year
2nd Year
3rd Year
4th Year
Total 1r n
Cost
1. What is the total cost for all 4 years? Use S n=a1 ( 1r ) to prove the total.
of 4
Years
2. If you earn $10,000 per year from work, how much money will you
need to borrow?
LOAN EQUATIONS:
_________________________________________________________________________________
____
NAME OF LOAN AMOUNT BORROWED & EQUATION TOTAL AMOUNT LOAN W
COST AFTER 10 YRS
1st Year
2nd Year
3rd Year
4th Year
Total 1r n
Cost
1. What is the total cost for all 4 years? Use S n=a1 ( 1r ) to prove the total.
of 4
Years
2. If you earn $10,000 per year from work, how much money will you
need to borrow?
LOAN EQUATIONS:
_________________________________________________________________________________
____
NAME OF LOAN AMOUNT BORROWED & EQUATION TOTAL AMOUNT LOAN W
COST AFTER 10 YRS
2. Based on your calculations for each college that you chose to research,
which college are you more likely to select? Explain your choice using
mathematical reasoning.
3. What difficulties did you encounter while completing this project? Give
concrete examples.
4. What are the major conclusions that youve learned while completing this
project? State 2-3 things that youve learned and why they are important to
you.