Understanding Loans and Monthly Payments Using Desmos
Description:
In this video, we break down the key concepts behind modern lending — including types of loans, payment structures, and how interest and principal work together over time. You’ll learn how installment loans differ from revolving credit like credit cards and how each impacts your long-term costs.
We then walk through how to model loan payments using Desmos, assigning variables for principal ( P ), interest rate ( r ), and number of periods ( n ) so you can automatically calculate your monthly payment ( M ) using the standard amortization formula. By visualizing relationships between the variables, you’ll see how changes in rate, time, or balance affect payment size — instantly and interactively.
Whether you’re teaching math, exploring personal finance, or learning to use Desmos for real-world applications, this video gives you the tools to understand and evaluate loan payment formulas with confidence.
Description:
In this video, we break down the key concepts behind modern lending — including types of loans, payment structures, and how interest and principal work together over time. You’ll learn how installment loans differ from revolving credit like credit cards and how each impacts your long-term costs.
We then walk through how to model loan payments using Desmos, assigning variables for principal ( P ), interest rate ( r ), and number of periods ( n ) so you can automatically calculate your monthly payment ( M ) using the standard amortization formula. By visualizing relationships between the variables, you’ll see how changes in rate, time, or balance affect payment size — instantly and interactively.
Whether you’re teaching math, exploring personal finance, or learning to use Desmos for real-world applications, this video gives you the tools to understand and evaluate loan payment formulas with confidence.
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