About This Chapter
Below is a sample breakdown of the Interest and Purchases chapter into a 5-day school week. Based on the pace of your course, you may need to adapt the lesson plan to fit your needs.
|Day||Topics||Key Terms and Concepts Covered|
|Monday||Index numbers||Definition of an index number, including the Dow Jones Industrial Average and Consumer Price Index|
|Tuesday||Credit terms and installment purchases||Explanation of the due date, end of the month (EOM) phrase and potential discount found in credit agreements, with examples; overview of the processes and terms associated with installment purchases|
|Wednesday||Price types and cost adjustments||Comparison of cash price and deferred payment price, including interest; calculations and examples of markups and markdowns|
|Thursday||Annual rate of interest and changes in percentage||Calculations of effective annual interest rates with current and future balance amounts or nominal rates; computations of percentage decreases or increases|
|Friday||Promissory notes||Overview of promissory note conditions; calculations of monthly payments|
1. Index Numbers in Statistics: Uses & Examples
Watch this video lesson to learn what index numbers are. Learn how useful this statistical number is in the real world. You will also see some index numbers that we use and probably hear every day.
2. Credit Terms: Due Date, Invoice Date & EOM
After watching this video lesson, you will understand some of the key terms that companies use on the invoices that they send to you. Learn how to pay your invoices according to these terms so you aren't late.
3. Installment Purchases: Payment & Terms
After watching this video lesson, you will know how installment purchases work. Learn how you can calculate the amount of your fixed installment payment.
4. Deferred Payment vs. Cash Price: Calculation & Interest
Watch this video lesson to learn the difference between paying cash up front for an item versus making payments at a later time for an item. Watch and see how you may end up paying more for an item if you pay later.
5. Markup & Markdown: Calculation & Examples
After watching this video lesson, you will become familiar with how stores price their products to make a profit. Learn about how they increase their prices, markup, and how they decrease their prices, markdown.
6. Effective Annual Rate: Formula & Calculations
After watching this video lesson, you will understand how the interest rate that financial institutions, such as credit card companies, give you work. Also, learn how this interest rate may be different than the one you actually end up with.
7. Percentage Increase and Decrease: Calculation and Examples
After watching this video lesson, you will be able to calculate the percentage increase and decrease of changes that happen over time. You will also learn what you need in order to make your calculations.
8. Promissory Note: Terms & Calculations
Watch this video lesson, and you will learn how some promissory notes, such as mortgages, can be sold and why they are sold. Learn about the terms or conditions that go into such a note and how money is made with these notes.
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Other chapters within the Business Math Curriculum Resource & Lesson Plans course
- Number Sense: Business Math Lesson Plans
- Linear Equations and Inequalities: Business Math Lesson Plans
- Graphing and Evaluating Equations and Functions: Business Math Lesson Plans
- Quadratic Equations and Functions: Business Math Lesson Plans
- Probability and Statistics for Business: Business Math Lesson Plans
- Depreciation & Salvage Values: Business Math Lesson Plans
- Business Math Applications
- Math for Financial Analysis