```Dream Home MathematicsDennis W. Montgomery           Lyman Trumbull Academy                               5200 N. Ashland                               Chicago IL 60640                               (312) 534-2430Objectives:This lesson-game is designed for grade levels 5-12.Students should be able to:* Use basic math to determine affordability of a home based on a given income.  * Add, subtract, multiply, and divide, as required.                                  * Calculate decimal placement for currency, percentages and interest.* Use a calculator. * Estimate affordability based on income, prior to computation.* Investigate different careers and their salary ranges.* Understand and calculate percentage, interest rates.* Understand gross income.* Calculate and understand taxes, withholdings and deductions.* Calculate net income.* Understand and compute the expense and cost concept.Materials:

* Careers catalog/magazine with salaries* Copies of newspaper classified section  * Calculators* Pencil/pen* Construction paper (approx. 11 X 12)* Play money (optional for variation with banker)* House plans with price (magazine's with house plans or create your own)* Glue* Scissors* 3" x 5" index cardsRecommended Strategy:

* Review lessons on computing percentages, interest, decimals and division.* Review a range of home prices and designs.* Review/teach the use of a calculator to compute interest, percentages, add,    multiply, divide and subtract taxes, deductions, and expenses.* Skipping one space, number ten 3 x 5 cards 1 to 3.  Head the card "CAREERS.  Use    the following format:   |            CAREERS               |                                |                                  |                           |1. Career:  Doctor                |                           |                                  |  3 x 5 card                           |2. Annual Salary:  \$250,000.00    |                           |                                  |                           |3. Added Expenses: Child support  |                                                        | \$1,000 or Child's College payment|                           | \$2,700 per month (add to F)      |   Career card info may be obtained from a "Careers" catalog/magazine or create    your own (keep it realistic).  Create real life "added expenses" =< \$5,000    per month.    * Using any magazine, newspaper or both, the teacher or students cut out various    home plans (preferably with a picture) and glue each one to a sheet of    construction paper, numbering each and giving it a bold heading of "DREAM    HOME".  Use the price listed in the newspaper, magazines or create your own.     In bold numbers, at the bottom of the construction paper, place the price of    the home.  If you create your own, be realistic. * Collect the career cards and the dream home sheets (in 2 stacks).* Distribute one career card and one dream home sheet to each group.* Create a data collection sheet in the following manner and order:        DREAM HOME MATH DATA COLLECTION: Can I afford to buy this home?

What is your occupation and annual salary?______________________________
Compute your monthly income (x/12)                      A.______________
What is the cost of your home on "DREAM HOME CARD"? (y) B.______________
Compute tax & payroll deductions (33% of A.)            C.______________
Compute loan payment (mortgage) & interest (9% of y)/12 D.______________
Compute monthly property tax (10% of y)/12              E.______________
Utilities, car payment, food & one child is your fixed monthly expense of
Compute total debt by adding lines C. and F.            G.______________
Subtract line G. from line A. for net income            H.______________
Add lines D. and E. for total home/mortgage cost        I.______________
Subtract line I. from line H. for cash remainder (+/-)  J.______________
If line J. has a positive(+) cash remainder, congratulations, you can
afford to buy the home, go to the banker or loan officer for amount shown on
line B.  Each month you must pay the bank/loan company amount shown on line I.

If line J. has a negative(-) cash remainder, I'm sorry, the home you have
selected cost too much for the amount of net income you have after
subtracting your total debt on line G.  You don't make enough money to buy
this particular home and have such large debts.  Try a less expensive home.

/ = Divide/Division     x = Annual Gross Salary/Income     y = Cost of Dream Home* Compare and graph home cost to net income/salaries, expenses/debt between    students.* Explore various careers and their salary ranges to teach affordability.* Explore difference between rentals and home purchases and how basic math is    used to provide an answer for; "Can I Afford to buy this home?"Performance Assessment:Students should compare the cost of buying a home and renting.  Math calculationson data collection sheet will be checked for accuracy.  Students at a later lesson, use their parents income and rent/mortgage to determine homes they can afford.Note:Any variations to "DREAM HOME MATH" should consider age and grade level.and pictures if possible.  This exercise reinforces five (5) primary math functions and introduces the student to one of the most valuable lessons of life, simplicity of math in buying a home.            ```