The objective of this spreadsheet assignment is for students to determine the financial cost of credit when purchasing a vehicle. This worksheet is set up so that students can manipulate the key factors to calculate interest in different types of consumer credit situations such as student loans, home mortgages, or credit card purchases.

Unit Plan
This assignment will be used during the unit in Business Foundations that deals with consumer credit. The unit consists of four topics which include: credit fundamentals, cost of credit, credit applications/documents, and protection of credit rights.

Students will be able to analyse the cost of credit. When borrowing money or obtaining a credit card it is important to figure out how much it will cost and whether or not you can afford it. The finanacial cost of credit should be a major consideration when planning and selecting among borrowing alternatives. This assignment will allow students to calculate monthly payments, total interest, and total cost on the basis of loan data entered. The interest rate schedule that they will create will list the monthly payment, total interest, and total cost for a range of interest rates. The amortization schedule will summarize loan information over the life of the loan.

When deciding to use credit, students should shop around for the best terms available. By creating a hyperlink within the spreadsheet, students will be able to look at interest rates that are currently available to them.

By creating a chart that plots yearly interest payment versus paid on principal amounts, students will be able to visualize the effect of time increasing the amount of interest owed when using credit.

Finally, students will be able to determine if the rate of interest they are using in their loan calculator is catagorized as low (good credit), average, or high (bad credit) by using a vlookup table function.