Promissory Notes Activity
Discover Annual Percentage Rates (APR) at a number of Financial Institutions and
record their interest rates in the following categories:
Car Loans (Used)
Mortgage Rates (30 year fixed)
Financial Institutions that will be used:
– Wells Fargo, US Bank, West Bank, Veridian Credit Union, Bank of America,
and Bank of the West.
– Once you discover these rates, you will share your findings with your
At these institutions, you have experienced the following 4 transactions: You are
given their maturity dates.
You took a $3,000 personal loan to pay for bills due to a loss of a job.
This loan repayment term will last 2 years.
You purchased a used car for $7,500 and took out a $6,000 car loan to
assist you. This loan repayment term will last 5 years.
You and your spouse purchased your first home and took out a
$150,000 mortgage to assist you in your payments. This loan
repayment term will be for 30 years.
You are beginning your junior year of college and to pay for tuition and
books you need to take out a $4,500 student loan to help. This loan
repayment term will last 10 years.
Your task is to determine for each loan the:
Total Amount of Interest
You will then share your results with the rest of the class.