Evaluating loan applications Approve or deny three loan applications and determine interest rate and monthly payment for each approved $10,000 loan.
College students: Average daily balance versus unpaid balance method worksheet
Compound interest Activity
Read Credit Card Debt Statistics.
In your journal:
Save a copy of the Compound Interest worksheet and share it with me.
#1-What is the average amount of credit card debt held by each person in the US with a credit card-from the article on credit card statistics
#2-What is the interest rate on your credit card?
Daily interest: 17.9%/365 days = .05% per day
Monthly interest: .05% * 30 days= 1.49%/ monthly
Your monthly interest rate replaces the 1.49% in the cell
#3 The minimum monthly payment is $100
Questions to answer PART 1
# 4 Now try it with your monthly payment from the credit card activity on 3/1
Questions to answer PART 2
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. Credit card interest activity
You now have credit card debt due to an emergency!
Choose your debt.
Minimum payment is interest +1%
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?
Warm up: The Crew Creativity exercise
Black out Poem for 10 points extra credit
Warm up: Come to class
Find three rentals and write the details of each in your journal. The Durango Herald or a newspaper in your city is a good place to start. www.apartments.com
Record your monthly revenue and your new rent cost, address and apartment details in your electronic budget. Share it with me.