Determining how down payments affect loans
Students calculate how monthly payments for installment loans change based on the size of the down payment.
Installment loans can help people purchase big-ticket items by allowing them to make payments over an extended period of time.
- How do installment loans help consumers purchase big-ticket items?
- How does the down payment amount affect monthly payments and total costs for an installment loan?
- Understand how down payments affect total cost and monthly payment amounts
- Calculate how down payment amounts change the overall cost of an item as well as monthly payments
What students will do
- Calculate the amount to be financed to buy a car after a down payment is made.
- Determine the monthly payment and total cost of a car based on three different down payments.
- Analyze costs or other factors to determine which down payment to make.
- Reflect on why they made that decision.
Note: Please remember to consider your students’ accommodations and special needs to ensure that all students are able to participate in a meaningful way.