BR 5.1.14: Let’s complete the pro con list for credit…. Credit Pros . Credit Cons. You can pay for things later Laws protect your money You can build credit and qualify for loans. There is a monthly bill Overspending can lead to debt. Agenda 5.1.14. 1. Bell Ringer (7 min)
BR 5.1.14: Let’s complete the pro con list for credit….. Credit Pros Credit Cons You can pay for things later Laws protect your money You can build credit and qualify for loans There is a monthly bill Overspending can lead to debt
Calculating Interest (copy this down) Variables Formula I=Interest P= The principal which is the amount borrowed R= Interest Rate T=Time Simple Interest: I=PRT
1. Tiechia purchases a new computer on her credit card. The computer costs $1200. If she has an interest rate of 15% and pays over 3 years, how much interest does she pay?
2. Sonia is purchasing a new car. How much interest does she pay if she borrows $20,000, the interest rate is 4% and she pays over 4 years?
3. Lavelle wants to buy a new condo. The one he wants costs $150,000. How much interest does he pay if he is able to get a 6% interest rate for 30 years? How much total does he pay?
4. Stephon buys new furniture for $2500. His interest rate is 10% over 2 years. How much interest does he pay? 5. How much total does he pay?
Calculating Compound InterestCalculating a mortgage Compound Interest Variables Compound Interest Formula N is an exponent PV= Present Value r= interest rate as a decimal N=number of time periods PV*(1+r)n=FV
Interest and Credit Cards Credit Packet
Make these headings on a sheet of paper Establishing credit Maintaining credit Using credit Losing credit