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Note to the teacher:
The following activity explains how to use a spreadsheet to help your students calculate a given monthly mortgage payment. You can also bring in an amortization handbook from the library or a bookstore and have students work in pairs to calculate monthly mortgage payments with variable interest rates.

 
Tools for Teachers

Activity: Amortizations: Using Lotus 1-2-3 Spreadsheet

Nancy Coffey, Operation Bootstrap, Lynn, MA

A staff member created a Lotus 1-2-3 spreadsheet program so that students could figure out monthly mortgage payments for the houses they had chosen. We used a fixed 30-year mortgage program at a 7.25 percent interest rate. Using the Lotus software, students determined the total coat of the house over the 30-year period. Those who had time figured payments and overall costs for a 20-year mortgage as well.

Every student loved this activity. The computer program worked like magic. Using it gave students a real feeling of power. For all students, this was an excellent opportunity to practice reading large numbers in English and to learn a new computer skill.

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