Updated 11/15/21Course Information

Course Scope and Sequence

Semester A

Student Name:

________________________________________________

1. Gross Income

Math Teacher Information:

2. Net Income & Recordkeeping

________________________________________________

3. Checking Accounts

________________________________________________

Tutor Information:

4. Savings Accounts

________________________________________________

5. Cash Purchases

________________________________________________

Semester B

1. Charge Accounts & Credit Cards

Math Schedule (Days/Time)

2. Loans

MON

TUE

WED

THU

FRI

3. Vehicle Transportation

4. Housing Costs

Credit Materials

Pencil

This Learning Events Packet (LEP)

McGraw Hill Mathematics of Business and

Personal Finance (2016) Student Textbook

Internet (optional)

Calculator (optional)

5. Investments

Personal Finance B

Credit 2 LEP

Page |2

Grading Components

Scale

Grade

A

B

C

D

Incomplete

Value

100-90%

89-80%

79-70%

69-60%

59-0%

Learning Events Packet (Mandatory)

Complete all the activities, and show all your thinking

in the space provided in the packet or on separate

paper.

Credit Components

Credit Checkpoint (15%)

Complete the Credit Checkpoint and show all your

thinking.

Quiz

70%

Homework (15%)

All homework is to be completed inside this packet or on

separate paper. Show organization and show all your

thinking.

Homework

15%

Credit

Checkpoint

15%

Quiz (70%)

Use the Credit Checkpoint to review concepts and

prepare for the Quiz.

Student Support Icons

Support Icons

Description

Learning

Coach

The Learning Coach icon gives you hints about what you are learning.

Technology

The Technology icon reminds you that technology may be used for extra support.

Vocabulary

The Vocabulary icon will focus on math vocabulary words that will help you with the

concepts you are learning.

Personal Finance B

Credit 2 LEP

Page |3

Credit Instructions

➢

Make sure to read each entire lesson inside this

Learning Events Packets (LEP) and study the

given examples before attempting the activities

that immediately follow.

➢

Use the instructional videos for each lesson to help

you work independently and determine where you

may need extra support from your teacher and/or

tutor.

➢

Write neatly and show as much of your thinking

as possible. You may complete your work inside

this packet or on separate paper.

➢

You may use a calculator when completing

the activities and quiz for this credit, but

you should always verify with your teacher,

as they will make the final decision on.

Digital Resources

L4L Virtual Tutoring

Visit our Virtual Tutoring Site and work with a tutor

virtually from your home Monday – Friday 9:30am to 6pm

http://tutoring.learn4life.org/

L4L Student Math Resource Website

Home to all of our math instructional videos!

http://learn4.life/math

or

http://bit.ly/L4Lmath

Personal Finance B

Credit 2 LEP

Page |4

Pacing Guide

Due Date

Completion Date

Due Date

Completion Date

Lesson 8.1 – Single-Payment Loans

Learning Goal: I can compute the maturity value and interest rate of a

single-payment loan.

Lesson 8.2 – Installment Loans – Amount Financed

Learning Goal: I can calculate the down payment and the amount financed

on an installment loan.

Lesson 8.3 – Installment Loans – Monthly Payment & Finance

Charge

Learning Goal: I can calculate the monthly payment, total amount repaid,

and finance charge on an installment loan.

Lesson 8.4 – Installment Loans – Monthly Payment Allocation

Learning Goal: I can calculate the payment to interest, payment to principal,

and new balance.

Lesson 8.5 – Paying Off Installment Loans

Learning Goal: I can compute the final payment when paying off an

installment loan.

Lesson 8.6 – Determining the APR

Learning Goal: I can determine the annual percentage rate of a loan using a

table and a formula.

Summative Assessments

Credit Checkpoint

Quiz

Personal Finance B

Credit 2 LEP

Page |5

Lesson 8.1

Single-Payment Loans

Learning Goal: I can compute the maturity value and interest rate

of a single-payment loan.

L4L Math Resource Center

learn4.life/Math

Video Instruction Available!

Read the section below and complete the following activity.

Single-Payment Loans – A single-payment loan is a loan that you repay with one payment after a specified

period of time. A business may be short of funds and need to borrow money to meet its payroll or pay for

inventory and supplies. The business owner could sign a promissory note with its financial institution. A

promissory note is a written promise to pay a certain sum of money on a specific date in the future. The

maturity value of the loan is the total amount you must repay. It includes both the principal and the interest

owed. Remember that principal is the amount borrowed.

A loan’s term is the amount of time for which the loan is granted. For example, a single-payment loan may be

granted for a number of years, months, or days. When the term is a specific number of days, the lending agency

may calculate interest in one of two ways:

1. Ordinary interest is based on a 360-day year.

2. Exact interest is based on a 365-day year.

The following formulas are used:

Interest = Principal ∙ Rate ∙ Time

Ordinary Interest = Principal ∙ Rate ∙

Exact Interest = Principal ∙ Rate ∙

Time

360

Time

365

Maturity Value = Principal + Interest

Example 1

Anita Sloane’s bank granted her a single-payment loan of $7,200 for 91 days to pay for new merchandise for her

candle shop. Determine the maturity value of the loan if the rate is (a) 6% ordinary interest or (b) 6% exact

interest.

Step 1:

Step 2:

Step 3:

Step 4:

Find the ordinary interest owed.

Ordinary Interest

=

Principal

∙

Rate

∙

$𝟏𝟎𝟗. 𝟐𝟎

=

$7,2000

∙

0.06

∙

time

360

91

360

Find the maturity value with ordinary interest.

+ Interest

Maturity Value = Principal

$𝟕, 𝟑𝟎𝟗. 𝟐𝟎

= $7,2000.00 + $109.20

Find the exact interest owed.

Principal

∙

Rate

∙

$7,200.00

∙

0.06

∙

Time

365

91

365

= $107.704 = $𝟏𝟎𝟕. 𝟕𝟎 Exact Interest

Find the maturity value with exact interest.

+ Interest

Maturity Value = Principal

$𝟕, 𝟑𝟎𝟕. 𝟕𝟎

= $7,2000.00 + $107.70

Personal Finance B

Credit 2 LEP

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Example 2 – Real-world Algebra Connection

Claudia Valdez took out a single-payment loan for $1,500.00 at 7.8% ordinary interest to pay her federal income

tax bill. If the loan’s maturity value is $1,529.25, when would Claudia have to pay back the loan?

Step 1:

Step 2:

Find the interest, 𝐼.

Maturity

=

Value

$1,529.25

=

$29.25

=

Principal

+

Interest

$1,500.00

𝐼

+

𝐼

Substitute given values.

Subtract $1,500.00 on both sides.

Find the time of the loan in days, 𝑡.

Ordinary Interest

=

Principal

∙

Rate

∙

$29.25

=

$1,500.00

∙

0.078

∙

t

360

𝑡

360

$10,530

=

$117𝑡

90

=

𝑡

Claudia would have to pay back the loan in 𝟗𝟎 days.

Substitute given values.

Multiply both sides by 360.

Divide both sides by $117.

Concept Check

Compute the a) interest and b) maturity value for each loan. (From Example 1)

1. Parker Logan purchased a new surfboard costing $600 and financed it at 9% ordinary interest for 90 days.

a) $13.50

b) $613.50

2. Holmes Ostendorf added a tack room to his barn costing $4,850 financed at 7% exact interest for 120 days.

a) $111.62

b) $4,961.62

Complete the problem. (From Example 2)

3. How long would it take a construction loan for $548,048 to earn interest of $50,000 at 9% exact interest?

370 days

Personal Finance B

Credit 2 LEP

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EVALUATE

Independent Practice

Lesson 8.1 Homework

Complete problems 1-3 below for independent practice.

HW

When you are finished, check the solutions with your teacher.

Calculate the interest and maturity value in each row.

1.

Row 1: a) $4.50; b) $904.50

Row 2: a) $9.67; b) $1,969.67

Row 3: a) $164; b) $4,964.00

Row 4: a) $656.04; b) $10,331.04

Determine the a) interest owed, and b) maturity value.

2. Sari Tagore obtains a $1,000 loan to purchase a laser printer. Her interest rate is 7% ordinary interest for 108

days.

a) $21

b) $1,021

Solve the problem below.

3. On April 14, Mikos Souvakis borrowed $100,000 to remodel his restaurant kitchen with a single payment loan

at 10.5% ordinary interest. If his loan’s maturity value was $104,375, how many days does Mikos have to pay

it back? 153 days

Personal Finance B

Credit 2 LEP

Page |8

Learning Goal

Lesson Reflection (Circle one)

I can compute the maturity value and interest rate of a single-payment

loan.

Starting…

Getting there…

Got it!

Lesson 8.1 Checkpoint

Once you have completed the above problems and checked your solutions, complete the Lesson Checkpoint

below.

Complete the Lesson Reflection above by circling your current understanding of the Learning Goal.

Determine the a) interest owed and b) maturity value.

1. Helio Silver obtains a loan to buy a piano for $8,400. His interest rate is 12% exact interest for 146 days.

a) $403.20

b) $8,803.20

Solve the problem below.

2. Suppose that your bank has a minimum loan charge of $48 when you borrow at 6% ordinary interest for 90

days. What principal borrowed will result in a $48 interest charge?

$3,200

Personal Finance B

Credit 2 LEP

Page |9

Lesson 8.2

Installment Loans – Amount Financed

Learning Goal: I can calculate the down payment and the amount

financed on an installment loan.

L4L Math Resource Center

learn4.life/Math

Video Instruction Available!

Read the section below and complete the following activity.

Installment Loans – You could apply for an installment loan to finance the purchase of a new or used vehicle,

such as a car, truck, or motorcycle. You repay an installment loan in equal payments over a specified period

of time. Usually, when you purchase an item with an installment loan, you must make a down payment. The

down payment is a portion of the cash price of the item you are purchasing before financing the rest on credit.

It could be a dollar amount or a percent of the cash price. The amount financed is the portion of the cash price

that you owe after making the down payment. The formulas to calculate the amount financed are:

Amount Financed = Cash Price − Down Payment

Down Payment = Cash Price ∙ Percent

Example 1

Trudy Quintero is buying gym equipment for $1,399. She makes a $199 down payment and finances the

remainder. How much does she finance?

Find the amount financed.

Cash Price − Down Payment

$1,399 − $199 = $𝟏, 𝟐𝟎𝟎 amount financed

Trudy financed $𝟏, 𝟐𝟎𝟎.

Example 2 – Real-world Algebra Connection

Roslyn Clay purchased a previously owned piano for $1,140 using the store’s installment credit plan. She made a

20% down payment and financed the remaining amount. What amount did she finance?

Step 1:

Step 2:

Find the 20% down payment.

Down Payment = Cash Price ∙ Percent

Down Payment = $1,140 ∙ 20%

Down Payment = $1,140 ∙ 0.20

Down Payment = $𝟐𝟐𝟖

Find the amount financed.

Amount Financed = Cash Price − Down Payment

$𝟗𝟏𝟐

= $1,140 −

$228

Substitute given values.

Convert percent 20% to decimal 0.20.

Multiply $1,140 and 0.20.

Substitute given values and simplify.

Roslyn financed $𝟗𝟏𝟐.

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Concept Check

Complete the problems by determining the amount financed. (From Example 1)

1. Melinda Vardalos purchased season concert tickets for $1,999.99. The down payment is $199.99. $1,800

2. Bertellini Dentistry purchased new equipment for $3,950. The down payment is $150. $3,800

Find the a) down payment, and b) amount financed. (From Example 2)

3. Antonio Reyes purchased an antique chest for a $1,360 cash price. He made a 20% down payment.

a) $272

b) $1,088

4. Maya DiNardo purchased a diamond bracelet for $1,725. The down payment was 30%.

a) $517.50

b) $1,207.50

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EVALUATE

Independent Practice

Lesson 8.2 Homework

Complete problems 1-5 below for independent practice.

HW

When you are finished, check the solutions with your teacher.

Find the a) down payment and b) amount financed in each row.

1.

Row 1: a) $120; b) 520

Row 2: a) $1,400; b) $3,460

Row 3: a) $1,500; b) $8,274

Row 4: a) $1,440; b) $2,160

Row 5: a) $1,422; b) $8,058

Row 6: a) $1,341; b) $4,023

Find the amount financed.

2. Owen Hawkins purchased carpentry equipment for $1,265 with a $100 down payment.

$1,165

3. Megan Barnes purchased photography equipment for $4,100 with a $1,000 down payment.

$3,100

Find the a) down payment, and b) amount financed.

4. Laurenz Huber financed the purchase of an $8,371.39 used car with a 15% down payment.

a) $1,255.71

b) $7,115.68

5. Linda Cusak purchased a $279.50 DVD player/stereo for her car. Using the store’s credit plan, she made a

$50.00 down payment.

a) $50

b) $229.50

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Learning Goal

Lesson Reflection (Circle one)

I can calculate the down payment and the amount financed on an

installment loan.

Starting…

Getting there…

Got it!

Lesson 8.2 Checkpoint

Once you have completed the above problems and checked your solutions, complete the Lesson Checkpoint

below.

Complete the Lesson Reflection above by circling your current understanding of the Learning Goal.

Find the amount financed.

1. Audrey Copeland purchased a used car for $14,470 with a $3,000 down payment.

$11,470

Find the a) down payment, and b) amount financed.

2. Bailey Ruffin bought a new motorcycle for $18,936.50 and made a 30% down payment.

a) $5,680.95

b) $13,255.55

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Installment Loans – Monthly Payment &

Finance Charge

Lesson 8.3

Learning Goal: I can calculate the monthly payment, total amount

repaid, and finance charge on an installment loan.

L4L Math Resource Center

learn4.life/Math

Video Instruction Available!

Read the section below and complete the following activity (adapted from Lesson 8.3).

Installment Loans – When you obtain an installment loan, you must pay finance charges for the use of the

money. You repay the loan with equal monthly payments over a specified period of time. Part of each payment

pays the interest on the loan’s unpaid balance. The remaining part of the payment is used to reduce the balance

of the loan principal.

The amount of each monthly payment depends on the amount financed, the number of payments, and the

annual percentage rate. The annual percentage rate (APR) is an index showing the cost of borrowing money

on a yearly basis, expressed as a percent. You will need to refer to the Monthly Payment on a Simple Installment

Loan of $100 table listed below to calculate related amounts. You will also need to use the following formulas:

Monthly Payment =

Amount of Loan

$100

∙ Monthly Payment for a $100 Loan

Total Amount Repaid = Number of Payments ∙ Monthly Payment

Finance Charge = Total Amount Repaid − Amount Financed

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Example 1

Blake and Jacqueline Toepfer are purchasing a $1,399.99 side-by-side refrigerator with an installment loan that

has an APR of 12%. The store financing requires a 10% down payment and 12 monthly payments. What is the

finance charge?

Step 1:

Step 2:

Find the amount financed.

Amount Financed = Selling Price − Down Payment

Amount Financed = $1,399.99 − (0.10 ∙ $1,399.99)

Amount Financed = $1,399.99 −

$140.00

Amount Financed = $𝟏, 𝟐𝟓𝟗. 𝟗𝟗

Find the monthly payment. (Refer to the Monthly Payment on a Simple Installment Loan of $100

table on the previous page.)

Monthly Payment =

Monthly Payment

Step 3:

Step 4:

Amount of Loan

$100

$1,259.99

$100

∙ Monthly Payment for a $100 Loan

∙

$8.88

Monthly Payment = $111.887

Monthly Payment = $𝟏𝟏𝟏. 𝟖𝟗

Find the total amount repaid.

Total Amount Repaid = Number of Payments ∙ Monthly Payment

Total Amount Repaid =

12

∙

$111.89

Total Amount Repaid = $𝟏, 𝟑𝟒𝟐. 𝟔𝟖

Find the finance charge.

Finance Charge = Total Amount Repaid − Amount Financed

Finance Charge =

$1,342.68

−

$1,259.99

Finance Charge = $𝟖𝟐. 𝟔𝟗

The finance charge is $𝟖𝟐. 𝟔𝟗.

Concept Check

Complete the problem.

1. Ingrid Nilsen purchased a $4,000 hydroponic system for her garden. The down payment is 20%, and the

installment loan has an APR of 10% for 36 months. Find the a) down payment, b) amount financed, c) monthly

payment, d) total amount repaid, and e) finance charge.

a) $800

b) $3,200

c) $103.36

d) $3,720.96

e) $520.96

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EVALUATE

Independent Practice

Lesson 8.3 Homework

Complete problems 1-6 below for independent practice.

HW

When you are finished, check the solutions with your teacher.

Determine the a) down payment, b) amount of the loan, c) monthly payment, and d) finance charge.

1. Jason Wagner obtains an installment loan to buy a $12,000 Honda Accord. His down payment is 25%, and the

APR is 9% for 36 months.

a) $3,000

b) $9,000

c) $286.20

d) $1,303.20

2. Shelly Lemony obtains a small business equipment loan for $120,000. Her down payment is 20% and the APR

is 8% for 12 months.

a) $24,000

b) $96,000

c) $8,352

d) $4,224

Find the finance charge.

3. Patrick Woracek obtains an installment loan of $6,400 to buy a professional digital camera and lenses. The

APR is 12%. The loan is to be repaid in 36 monthly payments.

$1,249.28

4. Adolfo LaRosa obtained an installment loan of $6,800 to help pay his college tuition. Student loans do not

require a down payment. He obtained the loan from a local bank and agreed to repay the loan in 24 monthly

payments at an 18% APR.

$1,343.68

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Complete the following problems.

5. Andrew and Ruth Bacon would like to obtain an installment loan of $1,850 to repaint their home. They can

get the loan at an APR of a) 8% for 24 months or b) 11% for 18 months. Which loan has the lower finance

charge? Lower finance charge is APR of 8% for 24 months at $156.88 compared to APR of 11% for 18 months

at $164.65

6. Lucy and Don Pflum need an installment loan of $12,900 to remodel their hair salon. City Loan will lend the

money at 10% for 24 months. Economy Line Finance Company will lend the money at 9% for 30 months.

Which loan costs less? How much will they save by taking the loan that costs less?

City Loan = $1,372.56

Economy Line = $1,535.10

City Loan costs $162.54 less

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Learning Goal

Lesson Reflection (Circle one)

I can calculate the monthly payment, total amount repaid, and finance

charge on an installment loan.

Starting…

Getting there…

Got it!

Lesson 8.3 Checkpoint

Once you have completed the above problems and checked your solutions, complete the Lesson Checkpoint

below.

Complete the Lesson Reflection above by circling your current understanding of the Learning Goal.

Find the finance charge.

1. Herb and Marci Jordan obtained an installment loan that has a 10% APR to purchase a dishwasher that

sells for $699.95. They agree to make a down payment of 20% and to make 12 monthly payments. What is

the finance charge?

$30.69

Complete the following problem.

2. Lola Segal needs to take out an installment loan of $1,200 to pay for auto repairs. Walton Savings and Loan

will lend her the money at 9% for 12 months. Horton finance company at 12% for 24 months. How much will

she save by taking the loan with the lower finance charge?

$96.48 saved by using Walton Savings

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Lesson 8.4

Installment Loans – Monthly Payment

Allocation

Learning Goal: I can calculate the payment to interest, payment to

principal, and new balance.

L4L Math Resource Center

learn4.life/Math

Video Instruction Available!

Read the section below and complete the following activity (adapted from Lesson 8.4).

Allocation of Payment on Installment Loans – As you learned in the last lesson, Lesson 8.3, an installment

loan is repaid in equal monthly payments. Part of each payment is allocated to pay the interest on the unpaid

balance of the loan, and the remaining part is used to reduce the balance. The interest is calculated each month

on the unpaid balance using the simple interest formula. The amount of principal that you owe decreases with

each monthly payment. The formulas follow:

Interest = Principal ∙ Rate ∙ Time

Payment to Principal = Monthly Payment − Interest

New Principal = Previous Principal − Payment to Principal

A repayment schedule shows the distribution of interest and principal over the life of a loan. The repayment

schedule below shows the interest and principal on an $1,800 installment loan for 6 months at 8%.

Example 1

Melinda and Xavier Garza obtained a loan for a used pickup truck. See the loan of $1,800 at 8% for 6 months in

the repayment schedule in the table above. She the calculation for the first payment. What are the (𝐚) interest,

(𝐛) payment to principal, and (𝐜) new principal after they make the first payment?

Step 1:

Find the interest.

Interest = Principal ∙ Rate ∙ Time

$𝟏𝟐

Step 2:

Step 3:

= $1,800 ∙ 8% ∙

1

12

Find the payment to principal.

Payment to Principal = Monthly Payment − Interest

$𝟐𝟗𝟓. 𝟎𝟖

=

$307.08

− $12.00

Find the new principal.

New Principal = Previous Principal − Payment to Principal

$𝟏, 𝟓𝟎𝟒. 𝟗𝟐 =

$1,800.00

−

295.08

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Example 2

Anton Grindenko obtained a $6,000 loan to update his café’s kitchen equipment at 8% for 36 months. The

monthly payment is $187.80. The balance of the loan after 20 payments is $2,849.08. What is the interest for the

first payment? What is the interest for the 21st payment? Why is the interest so much different for the two

payments?

Step 1:

Find the interest for the first payment.

Interest for First Payment = Principal ∙ Rate ∙ Time

$𝟒𝟎. 𝟎𝟎 = $6,000.00 ∙ 8% ∙

1

12

Anton pays $𝟒𝟎. 𝟎𝟎 interest in the first payment.

Step 2: Find the interest for the 21st payment.

Interest for 21st Payment = Principal ∙ Rate ∙ Time

$𝟏𝟖. 𝟗𝟗 = $2,849.08 ∙ 8% ∙

1

12

Anton pays $𝟏𝟖. 𝟗𝟗 interest in the 𝟐𝟏st payment.

The interest is reduced by more than half because the principal on which the interest is calculated for the first

payment is much higher than the principal on which the interest for the 21st payment is calculated.

Concept Check

Complete the problem. (From Example 1)

1. Use the loan information from the Garzas in Example 1 to compute the second month values for:

a) The interest $10.03

b) The payment to principal $297.05

c)

The new balance $1,207.87

Complete the problem. (From Example 2)

2. You take out an $8,000 loan on a new motorcycle at 12% for 24 months. The monthly payment is $376.80. The

balance of the loan after 15 payments is $3,222.44. What is the interest for the a) first payment and b) 16th

payment?

a) $80

b) $32.22

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EVALUATE

Independent Practice

Lesson 8.4 Homework

Complete problems 1-3 below for independent practice.

HW

When you are finished, check the solutions with your teacher.

Determine the missing amounts in the following table.

1.

Row 1: a) $1,105.44

Row 2: a) $28.83; b) $179.12; c) $3280.88

Row 3: a) $54; b) $275.04; c) $6,924.96

Complete the repayment schedule for a $2,400 loan at 12% for 12 months.

2.

Row 1: a) $1,236.53

Row 2: a) $200.75; b) $1,035.78

Row 3: a) $10.36; b) $202.76; c) $833.02

Row 4: a) $8.33; b) $204.79; c) $628.23

Row 5: a) $6.28; b) $206.84; c) $421.39

Row 6: a) $4.21; b) $208.91; c) $212.48

Row 7: a) $213.12; b) $2.12; c) $211; d) $1.48

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Complete the problem.

3. Emma Jarmel obtained a $6,000 loan at 10% for home improvements. The monthly payment is $276.60. What

is the amount of the a) interest for the first payment, b) payment to principal, and c) new principal?

a) $50

b) $226.60

c) $5,773.40

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Learning Goal

Lesson Reflection (Circle one)

I can calculate the payment to interest, payment to principal, and new

balance.

Starting…

Getting there…

Got it!

Lesson 8.4 Checkpoint

Once you have completed the above problems and checked your solutions, complete the Lesson Checkpoint

below.

Complete the Lesson Reflection above by circling your current understanding of the Learning Goal.

Complete the following problems.

1. Don Stone obtained an $8,500 installment loan at 14% for 42 months. The loan’s balance after 26 payments is

$3,733.55. What is the interest for payment 27?

$43.56

2. Demarrio Kibbe obtained a loan for $4,500 at 10%. The monthly payment is $270.45. What is the amount of

the a) interest for the first payment, b) payment to principal, and c) new principal?

a) $37.50

b) $232.95

c) $4,267.05

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Lesson 8.5

Paying Off Installment Loans

Learning Goal: I can compute the final payment when paying off

an installment loan.

L4L Math Resource Center

learn4.life/Math

Video Instruction Available!

Read the section below and complete the following activity.

Determining the Final Payment – When you have an installment loan, you pay interest on the unpaid

balance. You might have a simple interest installment loan for a car and sell the car before the end of the loan

term. If so, you pay only the previous balance plus the current month’s interest. This is known as the final

payment. Note that there may be a penalty for paying off a loan early.

One motive to pay off a loan before the end of the term is to pay less interest. The amount of interest saved

depends on the total payback minus the sum of the previous payments and the final payment. You will need to

use three formulas:

Interest = Principal ∙ Rate ∙ Time

Final Payment = Previous Balance + Current Month′ s Interest

Interest Saved = Total Payback − (Sum of Previous Payments + Final Payment)

Example 1

See the figure below for the first 3 months of the repayment schedule for Darlene and Hayden Grant’s home

repair loan of $1,800 at 12% interest for 6 months. What is the final payment if they pay the loan off with the

fourth payment?

Step 1:

Step 2:

Find the previous balance.

Read the repayment schedule above for the balance after the third payment. It is $913.70.

Find the interest for the fourth month.

Principal ∙ Rate ∙ Time

$913.70 ∙ 12% ∙

Step 3:

1

12

= $9.137 = $𝟗. 𝟏𝟒 Interest (fourth month)

Find the final payment.

Final Payment = Previous Balance + Current Month′ s Interest

$𝟗𝟐𝟐. 𝟖𝟒

=

= $913.70

+

$9.14

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Example 2 – Real-world Algebra Connection

How much would the Grants in Example 1 save by paying off the loan early?

Find the interest saved.

Interest Saved = Total Payback − (Sum of Previous Paymetns + Final Payment)

(3 ∙ $310.50)

= (6 ∙ $310.50) − [

+ $922.84]

=

$1,863.00 − [

$931.50

+ $922.84]

$𝟖. 𝟔𝟔 =

$1,863.00 − $1,854.34

They saved $𝟖. 𝟔𝟔.

Substitute given values.

Multiply 3 ∙ $310.50.

Add inside brackets.

Concept Check

Complete the problem. (From Example 1)

1. You plan to finance the purchase of a $1,200 electric scooter with a 12-month loan at 12% interest with a balance

of $816.04 after the fourth payment. What is the final payment amount if you pay off the loan with the fifth

payment? $824.20

Complete the problem. (From Example 2)

2. In problem 1 above, you had a 12-month loan of $1,200 at 12% interest to purchase an electric scooter. The

balance after the fourth payment of $106.56 is $816.04. How much do you save by paying off the loan with the

fifth payment? $28.28

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EVALUATE

Independent Practice

Lesson 8.5 Homework

Complete problems 1-3 below for independent practice.

HW

When you are finished, check the solutions with your teacher.

Find the interest and final payment.

1.

Row 1: a) $48; b) $4,848

Row 2: a) $20; b) $3,020

Row 3: a) $12.17; b) $1,472.97

Row 4: a) $29.91; b) $4,017.51

Row 5: a) $29.94; b) $3,295.81

Complete the following problems.

2. Jean-Claude Bubose will be the best man at his friend’s wedding. To pay for plane fare, gifts, and other

expenses, he took a $1,800 installment loan. The loan is for 12 months at 8% interest with a $156.60 monthly

payment. After 8 months, the balance is $615.87, and he pays off the loan when the next payment is due. a)

What is the amount of the final payment? b) How much does he save by paying the loan off early?

a) $619.98

b) $6.42

3. Nancy Parker has a $12,000 simple-interest installment loan at 12% for 36 months. The monthly payment is

$398.52. The balance after the sixth payment is $10,286.53. a) What is the final payment if the loan is paid off

with the seventh payment? b) How much will Nancy save by paying off the loan with payment number 7?

a) $10,389.40

b) $1,566.20

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Learning Goal

Lesson Reflection (Circle one)

I can compute the final payment when paying off an installment loan.

Starting…

Getting there…

Got it!

Lesson 8.5 Checkpoint

Once you have completed the above problems and checked your solutions, complete the Lesson Checkpoint

below.

Complete the Lesson Reflection above by circling your current understanding of the Learning Goal.

Complete the following problem.

1. Willard Hudson paid for a shipment of bicycles with a $6,000 installment loan at 10% interest for 24 months.

His monthly payment is $276.60. After 4 payments, the balance is $5,082.21. He pays off the loan when the

next payment is due. What is the amount of a) interest, b) final payment, and c) savings if Willard pays off

the loan with the fifth payment?

a) $42.35

b) $5,124.56

c) $407.44

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Lesson 8.6

Determining the APR

Learning Goal: I can determine the annual percentage rate of a

loan using a table and a formula.

L4L Math Resource Center

learn4.life/Math

Video Instruction Available!

Read the section below and complete the following activity.

Determining the APR – You should know that a lender who gives you an installment must tell you the annual

percentage rate (APR). If you know the number of monthly payments and the finance charge per $100 of the

amount financed, you can determine the loan’s APR. You can use a table such as the one below to find the

APR. With this information, you can compare the cost related to different loans. The full table can be found at

the end of this LEP on pages 36-37 and should be used to help you solve the homework problems.

Example 1

Paul Norris obtained a $1,500 installment loan to buy a racing bicycle. The finance charge is $146.25, and he will

repay the loan in 18 monthly payments. What is the APR?

Step 1:

Find the finance charge per $100.

Finance Charge per $100

=

$100.00

∙

=

$100.00

∙

Finance Charge

Amount Financed

$146.25

$1,500.00

$𝟗. 𝟕𝟓 = $100.00 ∙

0.0975

For every $𝟏𝟎𝟎 Paul borrows, he will pay a $𝟗. 𝟕𝟓 finance charge.

Step 2: Find the APR. (Refer to the Annual Percentage Rate for Monthly Payment Plans table.)

In the row for 18 payments, find the number closest to $9.75.

It is $9.77.

Read the APR at the top of the column.

The APR is 𝟏𝟐. 𝟎𝟎%.

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Concept Check

Complete the problem by finding the a) finance charge per $100, and b) APR.

1. Francesa Santorelli took a 6-month loan of $800 to buy art supplies. The finance charge is $24.64.

a) $3.08

b) 10.50%

EVALUATE

Independent Practice

Lesson 8.6 Homework

Complete problems 1–3 below for independent practice.

HW

When you are finished, check the solutions with your teacher.

11111

Complete the table. Using the Annual Percentage Rate for Monthly Payment Plans on page 36 & 37,

find the finance charge per $100 and the APR.

1.

Row 1: a) $3.31; b) 11.25%

Row 2: a) $6.64; b) 6.25%

Row 3: a) $3.60; b) 4.50%

Row 4: a) $12.81; b) 8.00%

Determine the APR.

2. Melissa Costouras obtains a $3,000 loan for darkroom equipment. She makes six monthly payments of

$511.18

7.75%

3. Jorge Alonso obtained an installment loan for $3,500 to finance his new invention. The bank requires a down

payment of 20% and 36 monthly payments of $85.18 each.

6.00%

4

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Learning Goal

Lesson Reflection (Circle one)

I can determine the annual percentage rate of a loan using a table and a

formula.

Starting…

Getting there…

Got it!

Lesson 8.6 Checkpoint

Once you have completed the above problems and checked your solutions, complete the Lesson Checkpoint

below.

Complete the Lesson Reflection above by circling your current understanding of the Learning Goal.

Determine the APR.

1. Helen Olson needs an installment loan of $999.00. She must repay the loan in 24 months. The monthly

payment is $44.96.

7.50%

2. Oneta Correy wants to obtain an installment loan of $9,900.00 to purchase a used truck. The bank has agreed

to a loan for 24 months at $439.89 per month.

6.25%

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Credit Scoring Rubric

Assess the quality of the following components.

Expanding

Score

Proficient

When all bulleted points below are met, check the box to the right.

• Work must be fully completed.

• All work must be shown.

• Lesson Checkpoints must be accurate.

• 1 to 8 points

I could not complete

the homework and/or

demonstrate at least

60% accuracy.

• 1 to 8 points

I could not complete

the Credit Checkpoint

and/or demonstrate at

least 60% accuracy.

• 1 to 49 points

I could not score at

least 70% accuracy on

the Quiz.

*** Revision/Retest Required ***

Quiz

Credit

Checkpoint

Homework

Learnin

g Events

Packet

Emerging

• 9 to 11 points

I put in the effort needed to

complete the homework

with an accuracy of 60% or

higher.

• 12 to 15 points

I put in the effort needed to

complete the homework

with an accuracy of 80% or

higher.

• 9 to 11 points

I put in the effort needed to

complete the Credit

Checkpoint with an

accuracy of 60% or higher.

• 12 to 15 points

I put in the effort needed to

complete the Credit

Checkpoint with an

accuracy of 80% or higher.

• 50 to 59 points

I scored between 70% to

85% accuracy on the Quiz.

• 60 to 70 points

I scored 85% or higher on

the Quiz.

15

15

70

Add the points to approximate the Total Credit Score.

Total Credit Score

=

100

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Name _____________________________________________________________

Comment:

Personal Finance B Credit 2

Credit Checkpoint

ASSESSMENT Credit Checkpoint

Complete the following problems to help you prepare for your Quiz.

Learning Goal from Lesson 8.1

How I Did (Circle one)

I can compute the maturity value and interest rate of a single-payment

loan.

I got it!

I’m still learning it.

Compute the loan’s maturity value.

1. Jamie Tavare’s bank granted him a $3,500 single payment loan for 80 days at 11% ordinary interest. What is

the loan’s maturity value? (2 points)

$3,585.56

Learning Goal from Lesson 8.2

How I Did (Circle one)

I can calculate the down payment and the amount financed on an

installment loan.

I got it!

I’m still learning it.

Find the a) down payment and b) amount financed.

2. Devin Gallagher purchased home entertainment equipment for $4,020.19 using the store’s credit plan. He made

a 20% down payment. (2 points)

a) $804.04

b) $3,216.15

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Learning Goal from Lesson 8.3

How I Did (Circle one)

I can calculate the monthly payment, total amount repaid, and finance

charge on an installment loan.

I got it!

I’m still learning it.

Determine the finance charge.

3. Jill Paa obtained a $1,450 installment loan to pay for a new laptop computer for her classwork. She agreed to

repay the loan in 18 monthly payments at an APR of 8%. (2 points)

$92.51

Learning Goal from Lesson 8.4

How I Did (Circle one)

I can calculate the payment to interest, payment to principal, and new

balance.

I got it!

I’m still learning it.

4. Daniela Nanz obtained a $2,500 loan at 12.5% to buy furniture for her apartment. The monthly payment is

$118.23. What is the amount of the a) interest for the first payment, b) payment to principal, and c) new

principal? (3 points)

a) $26.04

b) $92.19

c) $2,407.81

Learning Goal from Lesson 8.5

How I Did (Circle one)

I can compute the final payment when paying off an installment loan.

I got it!

I’m still learning it.

Complete the following problem.

5. Lillian Hartwick paid for her summer college tuition with an installment loan of $3,600 at 8% for 12 months

with a $313.20 monthly payment. After 6 payments, the balance was $1,835.62. She paid off the loan with the

next payment. What is the amount of a) interest, b) final payment, and c) savings by paying the loan off early?

(3 points)

a) $12.24

b) $1,847.86

c) $31.34

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Learning Goal from Lesson 8.6

How I Did (Circle one)

I can determine the annual percentage rate of a loan using a table and a

formula.

I got it!

I’m still learning it.

Determine the APR.

6. Jeff Stapleton acquired a $1,995 installment loan to pay for a new laptop computer. He will repay the loan in 12

monthly payments of $174.70. (3 points)

9.25%

Checkpoint Score

Total

=

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15

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Full Table for Lesson 8.6

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