Additional+Resources

This video provides a walk through of a problem involving interest. media type="youtube" key="6AZijeJDmgY" height="315" width="420"

This video provides additional walk through examples of problems involving simple and compounded interest.

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This video provides a fun, colorful introduction into the world of credit cards. media type="youtube" key="qWWZ77-1YuA" width="425" height="350"

Credit card statement example with Interest explanation

[|Math and YOU] This website provides various examples of real-life problems involving borrowing money and the interest accumulated.

__**Calculating Monthly Payments**__ There are several ways that you can calculate the monthly payment for an installment loan or to create an amortization table.
 * by hand
 * using a calculator
 * using a spreadsheet (see Example 1)
 * using an online calculator (Monthly Payment Calculator)

Depending on which method you use, your numbers may differ by a few pennies from what is shown in the examples and answers. This may occur due to how the figures are rounded. Be sure you understand the concepts described in this section and do not get distracted by numbers that differ by only a few pennies. It should be noted that when computing monthly payments and amortization schedules, some lending institutions round to the nearest cent. Other institutions give themselves a slight advantage by always rounding up to the next highest cent when calculating interest due to them. In most transactions, the total difference in these two rounding procedures should amount to only a few pennies. Sometimes, the final payment will need to be adjusted due to round-off error in calculating the monthly payment. To find the final payment in an amortization schedule, add the balance before the final payment to the final interest payment.




 * Section 6.2 - Example 1 ||  ||   ||   ||
 * Enter the values for the loan. ||  ||   ||   ||
 * || Amount of loan: || $1,200.00 ||  ||   ||
 * || Length of loan (in months): || 6 ||  ||   ||
 * || APR: || 6.00% ||  ||   ||
 * Payment Number || Balance before Payment || Monthly Interest || Monthly Payment || Balance after Payment ||
 * 1 || $1,200.00 || $6.00 || $203.51 || $1,002.49 ||
 * 2 || $1,002.49 || $5.01 || $203.51 || $803.98 ||
 * 3 || $803.98 || $4.02 || $203.51 || $604.49 ||
 * 4 || $604.49 || $3.02 || $203.51 || $404.00 ||
 * 5 || $404.00 || $2.02 || $203.51 || $202.50 ||
 * 6 || $202.50 || $1.01 || $203.51 || $0.00 ||
 * 4 || $604.49 || $3.02 || $203.51 || $404.00 ||
 * 5 || $404.00 || $2.02 || $203.51 || $202.50 ||
 * 6 || $202.50 || $1.01 || $203.51 || $0.00 ||

The next time you need to take out a loan for a major purchase you might want to check out Bankrate.com , which can help you find out what lender has the best interest rates in your area.
 * // __Need a loan??? __ //**