Appears in:
Pages: 5920-5925
Publication year: 2012
ISBN: 978-84-615-5563-5
ISSN: 2340-1079

Conference name: 6th International Technology, Education and Development Conference
Dates: 5-7 March, 2012
Location: Valencia, Spain

# WEB-BASED LEARNING OBJECT FOR COMPARATIVE LOAN CALCULATIONS

M. Fernández-Diego, F. Ramos

Universitat Politècnica de València (SPAIN)
Students enrolled in economical subjects require, among others, a thorough understanding of mortgage financing fundamentals and techniques that will enable the student to handle complex mortgage problems. Unfortunately, the mathematical background of these students is usually not as high as in other technical disciplines. Since students face difficulties in some topics of finance like loan calculations, it is desirable to provide them practical examples and tools while studying. To this end mortgage calculators are a good choice. A rich variety of mortgage calculation tools are freely available through Internet. However, most of them have not been developed from a pedagogical viewpoint. In this case, a very flexible tool is needed to assist professors and students in the learning of this subject. In this paper, a web-based learning object has been developed to provide graphical results of loan calculations as a function of different variables. Basically, this loan calculator can be used to find out the monthly payment and cost of borrowing for a fixed-rate loan but also considering an annual interest variation. The calculator gets as inputs the loan amount (principal), the loan term, the annual interest rate, and the annual interest variation. The comparative results are obtained graphically by choosing one of the following options: interest paid, principal paid, monthly payment or remaining balance. Furthermore, it is also possible to compare results from the French and the German methods, and mostly determine if a longer term makes sense. The feedback has been so positive that students encouraged us to develop additional digital learning objects related to other financial concepts.
@InProceedings{FERNANDEZDIEGO2012WEB,
author = {Fern{\'{a}}ndez-Diego, M. and Ramos, F.},
title = {WEB-BASED LEARNING OBJECT FOR COMPARATIVE LOAN CALCULATIONS},
series = {6th International Technology, Education and Development Conference},
booktitle = {INTED2012 Proceedings},
isbn = {978-84-615-5563-5},
issn = {2340-1079},
publisher = {IATED},
location = {Valencia, Spain},
month = {5-7 March, 2012},
year = {2012},
pages = {5920-5925}}
TY - CONF
AU - M. Fernández-Diego AU - F. Ramos
TI - WEB-BASED LEARNING OBJECT FOR COMPARATIVE LOAN CALCULATIONS
SN - 978-84-615-5563-5/2340-1079
PY - 2012
Y1 - 5-7 March, 2012
CI - Valencia, Spain
JO - 6th International Technology, Education and Development Conference
JA - INTED2012 Proceedings
SP - 5920
EP - 5925
ER -
M. Fernández-Diego, F. Ramos (2012) WEB-BASED LEARNING OBJECT FOR COMPARATIVE LOAN CALCULATIONS, INTED2012 Proceedings, pp. 5920-5925.
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