Interest Rate Impact on Monthly Payment
Activity Description
In this worksheet, students will explore how different interest rates affect the monthly payment and total interest to be paid for a car loan. The scenario involves a car loan amount of $40,000, with a duration of 7 years. Students will use a slider to adjust the interest rate and observe the changes in monthly payments and total interest. They will record the values for different interest rates and analyze the impact of interest rate changes on the overall cost of the loan.
Key Learning Outcomes:
- Interest Rate Awareness: Students will understand how varying interest rates impact loan payments and total interest.
- Financial Data Analysis: Students will develop skills in analyzing financial data related to loan agreements.
Learning Objective
Students will use the interactive worksheet to learn about the effect of interest rate on the total interest paid and the monthly payments. With the help of an interactive slider and graph, they will figure out the monthly payments and total interest for different interest rates.
Teacher Tips
