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Home Loan - Principal Only Payment

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  • Price per Classroom$2.00
  • Grade Levels 8, 9, 10
  • Topics Home Loan
  • Duration 20 Minutes
  • Auto Scored? Yes
  • Teacher Evaluation Needed? No

Activity Description

Students will be given the details of a home loan ($300,000 principal, 8% interest rate, and 30 years of loan duration) and then they will be asked to make a small extra principal-only payment every month using an interactive slider. They will learn how big of a change a small extra payment can make to the total interest paid and to the total loan duration.

Students will use the slider to record the values in a table like below:

Learning Objective

Understand Principal-Only Payments: Students will learn what principal-only payments are, how they function, and why they are crucial in managing loans.

Evaluate Financial Strategies: Students will explore the impact of principal-only payments on reducing the total interest paid over the life of a loan, allowing them to make informed financial decisions.

Teacher Tips

Included with the activity, you can view the tips to clarify student's doubts or to evaluate answers (for a teacher scored worksheet).
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  • Price per Classroom$2.00
  • Grade Levels 8, 9, 10
  • Topics Home Loan
  • Duration 20 Minutes
  • Auto Scored? Yes
  • Teacher Evaluation Needed? No

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