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In this activity, students will explore interest related to consumer loans, credit, and savings accounts.
In this activity, students engage in an exploration of consumer interest, both nominal and effective.
Students explore the concept of compounding and the nominal interest rate to develop an understanding of effective (annual) interest rate. Students apply this understanding in determining the actual cost to a student in obtaining an unsecured student loan.
Students use built-in features to convert between nominal and effective interest rates.
The Finance Solver is applied in determining the monthly payment for the purchase of a car. Students need only know the APR, number of times compounded, length of the loan, and the purchase price.
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