This week, we will be discussing debt in various forms. One of the more common forms is a mortgage, which is a type of loan that has a level payment over its term. Here, Salman Khan of Khan Academy presents a reasonably decent discussion of the math behind how to calculate a mortgage payment.
It’s a 20 minute video, which I watched, and which I think is worth your time to watch.
However, in class, I will present what I think is a much simpler way to think about the issue.