Objective
Students will be able to:
- Determine the total cost of a payday loan when given the amount financed, finance charge, and terms of the loan in weeks.
- Graph the relationship between the number of times a payday loan is renewed and the total cost of the loan.
- Rearrange the equation for the total cost of a payday loan to determine the finance charge.
In this personal finance lesson, students will learn how a payday loan works.
Resources
Procedure
Click NEARPOD VERSION: HOW EXPENSIVE ARE PAYDAY LOANS? to access an interactive version of the lesson powered by Nearpod: students interact and respond to questions on their device, and teachers will see their responses in real time!