Math Money Management – Chapter 7 Lesson Plans
Loans
Section 7.1 – Single Payment Loans
Enduring Understandings: The student shall be able to:
1. Compute the maturity value of a single-payment loan.
Standards:
42 Topic: Savings and Investments
Standard: Calculates simple and compound interest.
Essential Questions: How does interest rate affect the amount we have to pay back
when we borrow money?
Warm up/Opener:
GHSGT problems
Skills
Activities:
New Vocabulary:
Single Payment Loan: A loan that you repay with one payment after a specified period of
time.
Promissory Note: A type of single-payment loan. It is a written promise to pay a certain
sum of money at a specific future date.
Maturity Value: The total amount you repay on a loan, including both the principal
borrowed and the interest owed.
Principal: The amount of money on which interest is paid.
Term: The amount of time for which a loan is granted.
Ordinary Interest: Interest calculated by basing the length of time of a loan on a 360-day
year.
Exact Interest: Interest calculated by basing the length of time of a loan on a 365-day
year.
BOOK: A single-payment loan is a loan that you repay with one payment after a
specified period of time. A promissory note is a type of single-payment loan. It is a
written promise to pay a certain sum of money on a certain date in the future. The
maturity value of the loan is the total amount you repay. It includes both the principal
and the interest owed. The principal in the amount borrowed.
The term of a loan is the amount of time for which the loan is granted. A singlepayment loan may be granted for a stated number of years, months, or days. When the
term is a certain number of days, the lending agency may calculate interest in one of two
ways. Ordinary interest is calculated by basing the time of the loan on a 360-day year.
Exact interest is calculated by basing the time on a 365 day year.
Maturity Value = Principal + Interest Owed.
Assessments:
In Class: pg 218, # 1 – 5 all
HW: pg 219, # 6 – 14 all (9 problems)