B3.2 · Compare features and conditions of personal loans

Ontario Grade 11 Mathematics

Saving, Investing, and Borrowing

MEL3E study topic B3.2 — comparing loan features and conditions

What you will learn

• Identify common features and conditions shown in personal loan offers.
• Use a calculator or spreadsheet to compare the total amount repaid and the cost of borrowing.
• Explain how a loan’s conditions may suit one borrower better than another.

1. Read the offer before comparing

• Record the principal, rate, term, payment amount, frequency, and fees.
• Read the conditions as well as the headline rate.
• Ask for clarification when a cost or rule is unclear.

2. Compare costs using repeated payments

• Total scheduled payments = payment amount multiplied by number of payments, when payments are equal.
• Cost above principal includes relevant fees; do not count a fee twice.
• A smaller payment does not automatically mean a cheaper loan.

3. Decide which conditions matter to the borrower

• Consider affordability and payment timing, not only total cost.
• Check whether the rate can change and what happens if it does.
• A sound comparison explains trade-offs and identifies missing information.

A practical loan comparison checklist

Worked example

Example 1: Compare two offers for the same amount

1. Find Offer A’s payment total
   Offer A has equal monthly payments. Multiply one payment by the number of payments to find the scheduled total.
   $$190\times24=\text{CAD }4{,}560$$
2. Find Offer B’s payment total
   Use the same method for Offer B. Add its up-front fee because that amount is not included in the listed payments.
   $$160\times30+80=\text{CAD }4{,}880$$
3. Compare the costs above the amount borrowed
   Subtract the principal from each total. This shows how much each offer costs beyond the CAD 4,000 received, including the stated fee.
   $$4{,}560-4{,}000=\text{CAD }560;\quad 4{,}880-4{,}000=\text{CAD }880$$

Worked example

Example 2: Compare payment timing and a rate condition

1. Calculate Offer C’s stated total
   Offer C has 12 equal payments. Multiply the payment by 12 to total the listed payments.
   $$225\times12=\text{CAD }2{,}700$$
2. Calculate Offer D’s stated total
   Offer D lists 26 equal payments. Multiply the amount due every two weeks by 26. This totals the stated schedule, but the variable-rate condition still needs clarification.
   $$105\times26=\text{CAD }2{,}730$$
3. Compare totals and conditions
   Offer D’s stated total is CAD 30 higher. Rina should ask whether its payment amount or total could change when the variable rate changes, and confirm that no other fees apply. She should also check which due dates fit her budget.
   $$2{,}730-2{,}700=\text{CAD }30$$

Common mistakes and how to avoid them

Lesson summary

• Read the full offer: amount, rate, term, payment schedule, fees, and conditions.
• Use a calculator or spreadsheet to total the stated payments and include relevant fees once.
• Compare both cost and practical conditions, such as rate changes and payment timing.
• Ask the lender to explain missing or unclear information before agreeing.

Check your understanding

Key terms

Borrower

The person who receives a loan and is responsible for repaying it.

Principal

The amount of money borrowed before interest and fees.

Interest rate

The stated rate used by the lender to describe the charge for borrowing.

Term

The agreed length of time for repaying the loan.

Condition

A rule or requirement attached to a loan offer.

Variable rate

An interest rate that can change under the loan’s terms.

Continue through MEL3E

View the complete MEL3E Ontario Grade 11 Mathematics curriculum and lessons

• B3.1 · Compare the cost of carrying credit-card balances
• B3.3 · Calculate total interest over the life of a loan
• B1.1 · Compare savings services, costs, and ways to reduce fees
• B1.2 · Compare credit-card and debit-card costs and incentives
• B1.3 · Read financial statements and use them to manage money
• B2.1 · Investigate and solve simple-interest problems

Tutor support for B3.2 · Compare features and conditions of personal loans

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برای مبحث B3.2 · مقایسه ویژگی و شرایط وام شخصی در درس MEL3E، سؤال و تلاش خود را همراه بیاورید. در جلسه می‌توانید گام‌های تلاش خود را نشان دهید و آن را با یک نمونهٔ حل‌شده مقایسه کنید. راهنمای معلم ریاضی را ببینید یا جلسهٔ معارفهٔ رایگان ۳۰ دقیقه‌ای درخواست کنید. زمان جلسه پس از پذیرش معلم قطعی می‌شود.

About this lesson and its review

Published by DoAssignment. This reviewed lesson follows Ontario Grade 11 Mathematics (MEL3E), expectation B3.2. It is a study resource, not an official curriculum publication.

Before publication, content is checked for structure, mathematical or chemical notation, calculations, course boundaries, and readability. Errors can still occur, so corrections are welcomed.

Official curriculum reference

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