## MATH MONDAY: Amortization Formula

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Sep 20, 2020
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Math

This week on NGPF's Math Monday, we are diving into the AMORTIZATION formula. Brush up your own math skills or use these resources with your students to teach them the math behind how amortization works.

1. View the MATH Collection: Have your students practice using the amortization formula in the activity MATH: Auto and Mortgage Monthly Payments!
2. Formula of the Day: Introduce this formula to students by explaining that this will provide them with the payment they must make per pay period for a loan. Have students keep this close by when they are practicing their problems. Remember to double check your interest rate, indicated by the variable r. Is it an annual or monthly rate? Is your percent written as a decimal?

3. Watch the EdPuzzle Video: Your students can also watch the LEARN IT and PRACTICE IT videos that linked at the top of the activity, where they can practice calculating monthly costs of auto and mortgage loan payments, taking into account how much money you need to borrow, how long the loan is, and annual interest rates.

4. For Your Learning: Join Abby for this week's Virtual PD as she will review this formula and how to use this activity with students in How to Calculate Personal Finance Formulas on Wednesday at 3pm PT.