# Interactive Mortgage Loan Amortization Worksheet

(*)(*)(*)(*)( ) ( 3.9, 479 students)
• Price per ClassroomFREE
• Grade Levels 7, 8, 9, 10
• Topics Home Loan
• Duration 15 Minutes
• Auto Scored? Yes
• Teacher Evaluation Needed? No

### Activity Description

In this interactive worksheet, students will explore the impact of adjusting interest rates and loan durations on the amortization of a mortgage loan. Using sliders to adjust the interest rate and loan duration, students will observe real-time changes in a stacked bar chart that visualizes the distribution of payments between principal (blue portion) and interest (red portion).

Activities:

• Interactive Graph Presentation: Students will be presented with an interactive stacked bar chart that visualizes the amortization of a mortgage loan. The chart will show the principal (blue) and interest (red) portions of each payment.
• Slider Adjustment: Students will use sliders to adjust the interest rate and loan duration. They will observe how the blue and red areas of the stacked bar chart change in real-time based on their adjustments.
• Reflection: Guided questions will help students reflect on the importance of understanding loan parameters and making informed decisions when choosing mortgage terms.

### Learning Objective

The learning objective of the amortization graph activity is to help students understand how varying interest rates and loan durations influence mortgage payments over time. By analyzing the graph, students will learn to comprehend amortization schedules, see the division of payments between principal and interest, and observe the effects of different interest rates and loan terms on total and monthly payments.

### 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).

### National Standards in Personal Financial Education

Credit 8-3 -
Managing Credit

Students will know that The longer a loan repayment period and the higher the interest rate, the larger the total amount of interest paid by a borrower .. Students will use this knowledge to 8-3a . Describe the effect of higher interest rates and longer loan terms on the total cost of a loan . 8-3b . For a given monthly payment, loan amount, and loan repayment period, calculate the total amount of interest paid by the borrower .