1. Class 25, April 26, 2016 Lesson 8.3: Modeling Car Loans

2.  By the end of this lesson, you should understand: ◦ How installment loans (loans that are repaid with equal payments each month) work.

3.  By the end of this lesson, you should be able to: ◦ Use spreadsheet software to calculate monthly loan payments for a given loan principal. ◦ Calculate the total amount of interest being charged on an installment loan. ◦ Articulate the advantages and disadvantages associated with shorter and longer loan periods.

4.  Main ideas in the lesson: ◦ We can use technology, such as spreadsheets, to efficiently evaluate formulas with many different variables. ◦ Monthly payments on loans depend on interest rates and the tem of the loan; the monthly payment formula is one of many that involve multiple variables.

5.  Connections to the 8 course goals: 2. Reason abstractly and quantitatively. 4. Model with mathematics. 5. Use appropriate tools strategically.