Grade 9-12
,
Activity
Car Loan Calculator
Objective
Students will be able to:
- Compare differences in interest rates.
Standard
National Standards in Economics
Interest Rates
Standard: 12
- Students will understand that: Interest rates, adjusted for inflation, rise and fall to balance the amount saved with the amount borrowed, which affects the allocation of scarce resources between present and future uses.
- Students will be able to use this knowledge to: Explain situations in which they pay or receive interest, and explain how they would react to changes in interest rates if they were making or receiving interest payments.
National Standards in Financial Literacy
Spending
Standard: 2
- Students will understand that: A budget is a plan for allocating a person’s spendable income to necessary and desired goods and services. When there is sufficient money in their budget, people may decide to give money to others, save, or invest to achieve future goals. People can often improve their financial wellbeing by making well-informed spending decisions, which includes critical evaluation of price, quality, product information, and method of payment. Individual spending decisions may be influenced by financial constraints, personal preferences, unique needs, peers, and advertising.
Concepts
![](https://preview2.econedlink.org/wp-content/uploads/2021/07/iStock-498429176-1024x1024.jpg 1024w, https://preview2.econedlink.org/wp-content/uploads/2021/07/iStock-498429176-300x300.jpg 300w, https://preview2.econedlink.org/wp-content/uploads/2021/07/iStock-498429176-150x150.jpg 150w, https://preview2.econedlink.org/wp-content/uploads/2021/07/iStock-498429176-768x768.jpg 768w, https://preview2.econedlink.org/wp-content/uploads/2021/07/iStock-498429176-1536x1536.jpg 1536w, https://preview2.econedlink.org/wp-content/uploads/2021/07/iStock-498429176-100x100.jpg 100w, https://preview2.econedlink.org/wp-content/uploads/2021/07/iStock-498429176.jpg 1732w)
In this personal finance activity, students use a car loan calculator to compare interest rates.
Resources
Procedure
This is an individual activity where students will compare the amount of interest paid on car loans at different interest rates. To complete this activity, students need to follow the directions below:
- Go to the BankRate.com Car Loan Calculator.
- Complete the Quizizz activity or ReadyAssessments Activity
- You can also complete the questions with the Car Loan Calculator Worksheet and answers