Nearpod version available

Grade 9-12

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Lesson

# How Expensive are Payday Loans?

### 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.

### Standards

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

### Resources

### 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!