This Loan Amortization - Mortgage lesson plan also includes:
When you buy a home for $100,000, you pay $100,000—right? On the list of important things for individuals to understand, the lesson plan presents the concept of interest rates and loan amortization using spreadsheets and online sources. Through hands-on calculations, they begin to grasp the concept of compound interest while looking at the long-term financial ramifications of buying a home.
- Split the class into groups to work on the amortization table to assist learners who have difficulty understanding
- Open the lesson by showing how much homes are selling for in your area while introducing the concept of interest rates
- Teacher may need to make hard copies of the Excel spreadsheet for use in the assignment
- Requires online access to complete the lesson
- Resource provides link to mortgage calculator to use in lesson
- Provides mortgage amortization template link to help with the spreadsheet