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Interest Rates, FICO Scores and Loan Payments

Project Overview

Owning a home or car is something that most will do or want to do at some point in life.  However, many people do not understand the "Cost of Ownership".  To discuss interest rates and FICO scores for some is completely foreign terminology.   In this project, students will calculate monthly payments based using the payment formula, calculate the total amount that they will pay for a car or home based on the best interest rate they could get using their own FICO scores,  explore what happens to their accessible interest rate as their FICO score changes and interpret that change in terms of the total "Cost of Ownership".

This problem-solving based RWLO is intended for use in an Intermediate Algebra, College Algebra, Liberal Arts Math or Business Math course after students have been exposed to simple and compound interest.