Education Technology

Amortization Tables

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