Warm up Better Deal Problem of the day Lesson 83 Installment Loans and Monthly Payment ampFinance Charges Page 311 Objective Calculate monthly payment finance charges and total repaid Key Terms ID: 761882
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Warm- up Better Deal Problem of the day….
Lesson 8.3 Installment Loans and Monthly Payment &Finance Charges Page 311 Objective: Calculate monthly payment, finance charges, and total repaid
Key Terms Installment loans- repay over a set period of time using fix equal payments APR- annual percentage rate, index showing the cost of borrowing money on a yearly basis, expressed as a percentage.
Formulas Using the graphics calculator Total amount repaid = number of payments x Monthly payment Finance Charge = Total amount repaid – amount financed (amount borrowed)
Graphic Calculator lab – Page 313 Use of the graphic calculator to solve simple personal finance problems. Follow steps: Complete think and discuss,
Example ONE PAGE 311 Use Graphic Calculator N = 12 I = 12 PV = 1399.99 x .90 PMT = Solve FV = 0 P/Y and C/Y = 12 (payments based on 12 payments per year)
Complete Chart on page 314 Problems 3, 4, 5 Guided practice Solve parts b, c, d, not a. 3. 171.56, 1029.60, 29.60 4. 121.96, 2196.00, 196.00 5. 253.12, 6074.88, 474.88
Complete Problems 7 ,9, 11,13 Answers in the back of the book
Closure What effect does the APR have on the finance charges? Does it make sense to shop around for better rates?