This activity will help students think about the monthly cost to pay back a home loan, how the length of time of the loan and the rate of interest affect monthly payments, and the total cost paid for the house over the length of time for the loan.
Before the Activity
See the attached Teacher Edition PDF file for notes and guidelines for this activity. The Technology Guide PDF file includes step-by-step calculator instructions with screen shots.
If you are using the TI-Navigator™ Classroom Learning System, see the TI-Navigator Basic Skills Guide PDF file for information on how the system can be integrated into your activity.
During the Activity
Use USA TODAY® to find interest rates for 30-year and 15-year loans.
Express percentages in decimal notation.
Use a spreadsheet to compute the monthly payment, total amount paid, and ratio of total amount paid to loan amount for a home mortgage.
Distribute the Student Edition PDF file to your class.
Follow the activity procedures outlined in the student document.
You may use the Transparency PDF file to display a larger image of the USA TODAY® graphic during the activity.
After the Activity
Distribute the assessment questions or send the attached LearningCheck™ assessment to your class to gauge student understanding of the concepts presented in the activity.