1. More on Installment Loans
Lesson 5.4

2. Paying Off Simple Interest Installment Loans

3. I=P R T Formulas… Current Month’s Interest Final Payment
Previous Balance + =
Sum of previous payments and final payment
Interest Saved
Total Payback = -

4. Figure out the repayment schedule for and $1800 loan at 12% interest for the first three months of a six month loan.
Repayment Schedule
Payment Number
Monthly Payment
Amount for Interest
Amount for Principal
Balance
($1800) 1 2 3

5. Find the final payment if it is all paid off at the end of the fourth month.

6. Determining the APR
5.4b

7. Formulas…
Finance Charge per $100
Finance Charge
Amount Financed =
$100 *
Use Table on Pg. 794

8. Chuck Norris took out an installment loan of $2500 to buy a super-computer. The finance charge is $ He planned to repay the loan in 18 monthly payments. Find the APR

9. A 70” TV is on sale for $1200 or $166. 10 per month for 12 months
A 70” TV is on sale for $1200 or $ per month for 12 months. Find the APR

10. Lesson 5.4: More on Installment Loans
Questions?
Summarize your notes
Homework
Worksheet