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Ch 7: Interest & Purchases: Business Math Lesson Plans

About This Chapter

The Interest and Purchases chapter of this course is designed to help you plan and teach about credit terms in your classroom. The video lessons, quizzes and transcripts can easily be adapted to provide your lesson plans with engaging and dynamic educational content. Make planning your course easier by using our syllabus as a guide.

Weekly Syllabus

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.

DayTopicsKey Terms and Concepts Covered
Monday Index numbers Definition of an index number, including the Dow Jones Industrial Average and Consumer Price Index
TuesdayCredit terms and installment purchasesExplanation 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
WednesdayPrice types and cost adjustmentsComparison of cash price and deferred payment price, including interest; calculations and examples of markups and markdowns
ThursdayAnnual rate of interest and changes in percentageCalculations 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

8 Lessons in Chapter 7: Interest & Purchases: Business Math Lesson Plans
Test your knowledge with a 30-question chapter practice test
Index Numbers in Statistics: Uses & Examples

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.

Credit Terms: Due Date, Invoice Date & EOM

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.

Installment Purchases: Payment & Terms

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.

Deferred Payment vs. Cash Price: Calculation & Interest

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.

Markup & Markdown: Calculation & Examples

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.

Effective Annual Rate: Formula & Calculations

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.

Percentage Increase and Decrease: Calculation and Examples

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.

Promissory Note: Terms & 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.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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