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Grade 9-12
,
Lesson

How Expensive are Payday Loans?

Time: 60 mins,
Updated: November 9 2022,
Author: Hilary Hunt
Teacher Version
Objective Standards Summary
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Objective

Students will be able to:

  • Determine the total cost of a payday loan when given the amount financed, finance charge, and terms of the loan in weeks.
  • Graph the relationship between the number of times a payday loan is renewed and the total cost of the loan.
  • Rearrange the equation for the total cost of a payday loan to determine the finance charge.

Standards

National Standards in Economics

National Standards in Financial Literacy

State Standards

Common Core State Standards

Concepts

Credit, Interest
Subjects:
Math,Personal Finance

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