This page is a folder for two projects that are closely related. The first was we "discovered" compounding interest by using a "calculator" (the calculator is really a spreadsheet that uses formulas to work out the interest) Mr. Chase set up for us. The second project is about loan amortization. This project is on the second tab of the spreadsheet below. We were to figure out the amount of a loan for a house that was actually the barrowed amount and the amount paid that was from interest. Below the spreadsheet there are links to a loan amortization calculator, a article about amortization and other resources. Also below the spreadsheet are the important numbers from this project on 100 words of reflection (what I learned) from this amortization project.
121 Words of Reflection
This loan amortization project as taught me a lot about how loans and interest work. The most outstanding thing I learned is that a person pays almost as much in interest as they do the loan. Many people don't realize this so they think that they get a $200,000 house for about $210,000 but in reality, they pay close to $400,000. I also learned how to set up a loan calculator so I can now figure out how much a house will really cost me if I know the interest rate. I think this is one of the more helpful projects because it can easily be applied to real life (not that my other projects couldn't be used in real life).