Calculate and compare loan costs when interest is paid or charged daily, monthly, quarterly or six-monthly on a reducing balance loan.
- Reducing balance
- Per annum
About the Lesson
Students use the lists on the calculator to create a semi-automated home loan calculator. The step by step process and questions explore how the proportion of each loan repayment changes over the course of the loan. Students also use a formula to compute the monthly balance and generate a table of values.