Academic/Career & Technical Related/Demonstration Lesson Plan
Instructor
Julie Lewis
Program/Class
Date
BSN Math
Blizzard Bag 3
Period 5, 6, 7, 8
State Indicator/Competency: Calculate expected values and use them to solve problems.
Instructional Objective(s):
5.1 Promissory Notes
1. Students will be able to calculate interest on interest-bearing promissory notes with 80% accuracy.
2. Students will be able to calculate interest using the exact interest method with 80% accuracy.
3. Students will be able to calculate interest using the ordinary interest method with 80% accuracy.
4. Students will be able to calculate the rate of interest with 80% accuracy.
5.2 Calculating Interest
1. Students will be able to calculate interest using simple interest tables with 80% accuracy.
2. Students will be able to calculate interest using the daily interest factor with 80% accuracy.
5.3 Installment Loans
1. Students will be able to calculate the installment price and finance charge on an installment plan purchase with
80% accuracy.
2. Students will be able to calculate the number and amount of monthly payments with 80% accuracy.
3. Students will be able to calculate the interest, principal payment, and new balance on an installment loan with
80% accuracy
5.4 Early Loan Repayment
1. Students will be able to calculate the final payment to pay an installment loan off early with 80% accuracy.
2. Students will be able to calculate the savings in interest to pay an installment loan off early with 80% accuracy.
5.5 Annual Percentage Rates
1. Students will be able to calculate the APR on a loan with 80% accuracy.
Materials: textbook, calculator, binder, writing utensil
Method of Instruction: Independent Student Led
Activities:
1. Kendra signed a promissory note for $5,900 at 12% ordinary interest for 180 days. Find the interest and amount
due she will pay when the note is due.
180
Interest = $5,900 × .12 ×
= $354
360
Amount due: $6,254
2. Find the ordinary interest from November 8 to November 22 on $750 at 9% interest.
.09
Daily Interest Factor: $750 × 360 = $0.1875
Number of days: 15 days
Ordinary Interest: $0.1875 × 15 = $2.81
3. A refrigerator sells for $1,044 on the installment plan. After making a down payment of $100, you pay $59 a
month. How many months will it take to pay for the refrigerator?
Remainder to pay: $1,044 - $100 = $944
Number of months: $944 ÷ $59 = 16 months
4. Ben borrowed $1,000 on a one- year simple interest installment loan at 15% interest. The monthly payments
were $90.26. Find the amount of interest, amount applied to the principal, and the new balance for the first
monthly payment.
Calculate the monthly interest rate: 15% ÷ 12 = 1.25%
Interest = $1,000 × .0125 × 1 = $12.50
Amount applied to the principal: $90.26 - $12.50 = $77.76
New balance: $1,000 - $77.76 = $922.24
5. Mario had a 12-month, $2,000 simple interest loan at 9% interest. He repaid the loan in full with the sixth
payment when his balance was $1,188.40. How much was his final payment?
Monthly Interest Rate: 9% ÷ 12 = 0.75%
Interest = $1,188.40 × .0075 × 1 = $8.91
Add balance to current month’s interest: $1,188.40 + $8.91 = $1,197.31
6. The finance charge for a 6-month, $1,200 installment loan is $72. Find the annual percentage rate on the loan.
$72 ÷ $1,200 = 0.06 x 100 = $6
The annual percentage rate is 20 1/4%.
Assessment: Blizzard Bag #3 WS (10pts)
BSN Math: Lewis
Blizzard Bag 3: DUE in 2 WEEKS
Name_________________________