CL - Comparing Lenders Lesson

Comparing Lenders

Introduction

We’ve taken a look at a few single payment loans which are paid back in full using one payment, but most loans are paid back using monthly payments. How does this work? If the balance changes every month, wouldn’t the interest change as well?

How do we determine which loan or credit card is best for us? Is the APR most important or maybe the term or the time it takes to pay it back? Considering the fact that you can be stuck with a loan for 30 years, we definitely want to figure this all out and get it right!

Amortization

In Your Notebook: Please take down important notes, such as formulas, and attempt the practice examples on your own before viewing the solutions!

Using a Spreadsheet for Amortization

The following video will show you how to use a spreadsheet program, such as Microsoft Excel, to automatically calculate a chart displaying amortization for a loan. Take notes and attempt to follow using your own spreadsheet if possible.

In Your Notebook: Please take down important notes, such as formulas, and attempt the practice examples on your own before viewing the solutions!

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