Activity #1: Select a loan You have $1,000,000 to get started. It will be a 5 year promissory note, 8% interest. You may choose simple interest or simple discount. Which do you choose and why? Show your work.

Activity #2: Choose a house You have decided to purchase a new home, and run the business from this house. You can use no more than the equivalent of 40% of your loan proceeds for the Principal and Interest. Provide: A picture of the house List price Web source of the information (any citation format is fine) Show the calculation of PITI assuming an 18% downpayment, a 30yr fixed mortgage, and assuming that Tax and Insurance are each an additional 10% of your monthly payment.

Activity #3: Choose a car

1. You need a company car. You can use no more than the equivalent of 15% of your loan proceeds for the vehicle. Show the following from a dealer website:

• A picture of the car you choose
• List price
• Lease rate (if it exists)
• Any discounts you would be eligible for (student, military, etc)

Use the calculations from class to show whether owning or leasing the vehicle would be a better option. With your ownership calculations, show how would the monthly payment change if you (a) increased the downpayment by 10%, (b) shortened the length of the loan by 1 year

Activity #4: Reflect on Process

1. Reflect on the calculations used in activities 1-3. How can an understanding of business math help you as a consumer or business professional who must consider these types of purchases?