Nearpod version available

Grade 9-12
,
Lesson

How Expensive are Payday Loans?

Time: 60 mins,
Updated: March 25 2021,
Author: Hilary Hunt

Objective

Students will be able to:

  • Determine the total cost of a payday loan when given the amount financed, finance charge, and terms of the loan in weeks.
  • Graph the relationship between the number of times a payday loan is renewed and the total cost of the loan.
  • Rearrange the equation for the total cost of a payday loan to determine the finance charge.

In this personal finance lesson, students will learn how a payday loan works.

Procedure

Click NEARPOD VERSION: HOW EXPENSIVE ARE PAYDAY LOANS? to access an interactive version of the lesson powered by Nearpod: students interact and respond to questions on their device, and teachers will see their responses in real time!