Activity Overview
In this activity, students carry out financial computations, involving amortization. Students will prepare amortization tables indicating principal payments, interest payments, and the balance on a loan for each time interval.
Before the Activity
Select TVM Solver from the calculator menu
See the attached PDF file for detailed instructions for this activity
Print pages 24 - 28 from the attached PDF file for your class
During the Activity
Distribute the pages to the class.
Follow the Activity procedures:
Use the TVM Solver to find the monthly mortgage payments using N, I%, PV, P/Y and C/Y values
Find the balance after each payment
Create a amortization table with principal, payments, and balance amounts
View the payment schedule for different months
After the Activity
Review student results:
As a class, discuss questions that appeared to be more challenging
Re-teach concepts as necessary