1. Warm Up Problem Review Steps on Page 327 Complete problem 20 2896 x.20 = 579.20 (down payment) 2896 – 579.20 = 2316.80 (amount borrowed) Monthly payment = $201.53 201.53 x 12 = 2148.36 (amount Repaid) FC = 2418.36- 2316.80 = 101.56

2. Compute the final payment 8.5 page 319

3. Final payment Paying off a loan early saves interest and future income “10-day pay-off”

4. Equations Interest = Principal x Rate x Time Final Payment = Previous Balance + current month’s interest Interest saved = Total payback – (sum of previous payments + Final Payment)

5. Example One page 319 What is the previous balance 913.70 (3 rd payment) What is the interest? 913.70 x.12 x 1/12 = 9.14 (for 4 th month) Find the final payment (913.70 + 9.14) balance plus interest’ Concept check 1: 824.20

6. Example 2, page 320 Use example 1, How much do they save paying off the loan early? Find the interest saved: Total payback-(sum of previous payments + Final Payment) (6 x 310.50) – ( (3 x 310.50) + 922.84)) What you would have paid – what you did pay

7. Concept check 2 page 320 (12 x 106.56) – (( 4 x 106.56) + 824.20)) 1,278.72 – (426.24 + 824.20) 1,278.72 – 1,250.44 28.28 (saved)

8. Check you work on problem 8, page 321 Answer: A 42.35 B 5,124.56 C 407.44

9. Homework page 321 Problem 9 Show the steps with equations for full credit Review on-line chapters 8.1- 8.5 www. Glencoe.com Link on my website Test on chapter 8 on ______________.