Education Technology

Loans and Mortgages

Published on 06/09/2008

Activity Overview

In this activity, students perform financial computations, involving loans, their repayment and mortgages used as security for the repayment of a loan.

Before the Activity

  • Select TVM Solver from the calculator menu
  • See the attached activity PDF file for detailed instructions for this activity
  • Print page 22-23 from the attached PDF file for your class
  • During the Activity

    Distribute the pages to the class.

    Follow the Activity procedures:

  • Calculate the monthly payments to be made as repayment of a loan, using N, I%, P/Y, and C/Y values
  • Calculate the maximum loan amount for a given monthly repayment amount using N, I%, PMT, P/Y, and C/Y values
  • After the Activity

    Review student results:

  • As a class, discuss questions that appeared to be more challenging
  • Re-teach concepts as necessary