Prepare an amortization schedule for the loan. Students will be surprised as they calculate the total amount of interest paid on the loan. This brings us to financing a home. Big Investment One of the biggest investments most people will ever make is buying a home. The following exercise is designed for students to experiment around with the length of the loan and interest rates.
Interest rates vary slightly from bank to bank.
In the Excel chart, the interest rate and total payments are variable. Students should be allowed explore payments as these two quantities vary. As a final project, students might be asked to do an essay on financing a house given several constraints such as maximum amount of monthly payments or varying interest depending on the length of the loan. Students might use graphs to support there conclusions. There are numerous ways to assess students progress through this unit.