Level 3 Personal finance
Students use a recurrence relation to work out how long it takes to pay off a credit card loan and how much it costs. They can use a graphic calculator and/or spreadsheet to do the working.
This activity uses UK house prices to introduce moving averages and weighted moving averages.
Students calculate the APR in the simplest case where a sum of money is borrowed at a particular time and paid back, with interest, in a single payment at a later date.
This resource shows students how to check and then find the APR in more difficult cases when a loan or debt is repaid in several annual instalments.
Students use a formula to calculate Laspeyres index to obtain a measure of price changes during different periods of time. They use a spreadsheet and/or a calculator to do the working.
Use this activity to check what percentage methods students use, and to encourage them to use efficient multiplier methods.