Warm Up: Will you apply for a credit card when you can? Why or why not? Is there a
special circumstance that would prompt you to apply for a new card?
Credit Card Activity
1. Choose a credit card for yourself: American Express, Discover, Visa, Master
Card Which card did you choose?
○ What is the annual interest rate?
○ What are the annual fees?
○ Why did you choose this card?
2. Compound interest activity
You now have credit card debt due to an emergency!
Choose your debt.
Minimum payment is interest +2%
Use the interest rate from the credit card
● Using the Credit Card Calculator answer the following questions:
1. How many months will it take to pay this off with just minimum payments?
How much interest will you pay?
2. If you use your monthly savings as the payment (assuming it is greater than your minimum payment) how many months will it take you to pay off the balance?
3. How much interest will you pay?
4. Has this activity changed the way you view credit cards? Why or why not?