Suppose your brother or sister owed you $500. Would you rather have this money repaid to you right away, in one payment, or spread out over a year in four installment payments? Would it make a difference either way?
Students participate in a series of activities that provide them with a simulated credit score and an auto loan interest rate based on their credit score. Then they learn to use compound interest and amortization schedules to calculate the real cost of buying a car, and they compare the total cost of buying a car for individuals with high and low credit scores. At the conclusion, students have a second opportunity to obtain a higher credit score and evaluate how this will affect what kind of car they can buy. Students should have some mathematical background in exponents and the idea of percents before beginning this lesson.
How to amortize a loan using an Excel spreadsheet.
The following lessons come from the Council for Economic Education's library of publications. Clicking the publication title or image will take you to the Council for Economic Education Store for more detailed information.
This publication contains 23 lessons that introduce high school students to the world of investing--its benefits and risks and the critical role it plays in fostering capital formation and job creation in our free market system.
23 out of 23 lessons from this publication relate to this EconEdLink lesson.
Created as a supplement to existing middle school world geography and world history courses, the 5 units in this guide introduce students to the basics of global trade.
7 out of 7 lessons from this publication relate to this EconEdLink lesson.
This publication contains 17 lessons that complement the 6-8 Student Workbook. Specific to grades 6-8 are a variety of activities, including developing criteria that students think would make a good graham cracker and taste-testing to determine which graham cracker meets their needs; deciding which activities are better suited to careers or hobbies; and learning how important planning is to the success of any goal or event.
4 out of 19 lessons from this publication relate to this EconEdLink lesson.