Calculating loan payments
Using a case study, students explore how the amount borrowed, interest rates, and the term of a loan can increase or decrease the amount of loan payments.
The amount of an installment loan payment amount is the result of several factors.
How do principal, interest rate, and loan term affect loan payments?
What criteria do you use to compare loan offers to get the best deal?
Make informed choices about credit offers
Calculate monthly payments for loans based on principal, interest rate, and loan term
What students will do
Calculate and analyze how monthly payments on a loan change based on the principal, interest rate, and term of the loan.
Compare borrowing options to identify the best deal.
Reflect on ways to reduce the amount owed on a loan.