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.

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Warm Up Problem Review Steps on Page 327 Complete problem x.20 = (down payment) 2896 – = (amount borrowed) Monthly payment = $ x 12 = (amount Repaid) FC = =

Compute the final payment 8.5 page 319

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

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)

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

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 ) – ( (3 x ) )) What you would have paid – what you did pay

Concept check 2 page 320 (12 x ) – (( 4 x ) )) 1, – ( ) 1, – 1, (saved)

Check you work on problem 8, page 321 Answer: A B 5, C

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