In this activity, students will discuss and use multiple ways to answer financial questions involving loans, compound interest, amortization tables, saving money using annuities, and depreciation of assets.

• Students will discuss and use multiple ways to answer financial questions involving loans, compound interest, amortization tables, saving money using annuities, and depreciation of assets.
• Students will then apply this finance knowledge to real world situations.
• Students will try to make a connection with how to understand these topics in IB Mathematics courses and on their final assessments.

• Amortization
• Compound Interest
• Depreciation
• Annuities

Before this activity is started, some background knowledge must be given on amortization tables. Amortization tables are quite useful when discussing the payback of loans. They are used as ways of calculating the value for business assets over time. Students are going to use them to give them a little taste of what it would cost to purchase a car or a home and how to compare options.

Note: An optional IB Question DOC/PDF is available as a download for students preparing for the IB Exam.