MORTGAGES AND INTEREST

MORTGAGES AND COMPOUND INTEREST LESSON PLAN

 

Teaching Materials

• Lesson - Mortgages and Compound Interest  (see below for printable lesson)

• Overhead

• Examples of Current Mortgage offers – brochures, websites, etc.

• Many pre-calculated interest examples

 

Lesson Activity

1. Discuss personal wealth
   1. Ask for examples of ways it is accumulated
   2. Discuss maximizing interest as a prime way to build wealth
2. Review Simple Interest
   1. Use the FV concept to create the formula:
   2. Work through examples
3. Review Compound Interest
   1. Use Formula:
   2. Work through same example as Simple Interest but with compounding interest
4. Compare the two methods
   1. Discuss impact over time
   2. Calculate the difference in return rate
5. Discuss compounding frequency
   1. Work through examples above with different compounding periods
6. Discuss the relationship between the compound interest formula and the PV formula
   1. Inverses and interchangeable terms

  → 

1. Discuss Mortgage Application
   1. Explain mortgages, ask for examples
   2. Show how to use formula to calculate mortgage payments
   3. Work through examples

Assessment/Evaluation
Have students complete worksheet. A passing grade is 70% or greater. 

 

 

Lesson Printable Materials - Worksheets

Print out the teaching lesson pages and exercise worksheets for use with this lesson:

 

MORTGAGES AND COMPOUND INTEREST LESSON
	Mortgages and Compound Interest Lesson Lesson and worksheet.
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