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# CM30S - 1.3

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### CM30S - 1.3

1. 1. Consumer Math 30S Unit 1 – Income & Debt Credit Cards
2. 2. Credit Cards Unit 1 – Income & Debt Outcome 1-3: Solve problems involving credit card buying
3. 3. Credit Cards Unit 1 – Income & Debt Outcome 1-3: Solve problems involving credit card buying
4. 4. Credit Cards A credit card is a system of payment named after the small plastic card issued to users of the system. In the case of credit cards, the issuer lends money to the consumer (or the user). A credit card allows the consumer to 'revolve' their balance, at the cost of having interest charged. Unit 1 – Income & Debt Outcome 1-3: Solve problems involving credit card buying
5. 5. Credit Cards Benefits vs Drawbacks Unit 1 – Income & Debt Outcome 1-3: Solve problems involving credit card buying
6. 6. Video – Credit & Credit Cards Unit 1 – Income & Debt Outcome 1-3: Solve problems involving credit card buying
7. 7. Credit Card Statements
8. 8. <ul><li>Credit Cards </li></ul><ul><li>Interest Rates </li></ul><ul><ul><ul><li>per annum </li></ul></ul></ul><ul><ul><ul><li>daily rate, yearly rate </li></ul></ul></ul>What is the daily interest rate if the annual interest rate is 19%? What is the yearly rate if the daily interest rate is 0.049315%? Unit 1 – Income & Debt Outcome 1-3: Solve problems involving credit card buying
9. 9. <ul><li>Credit Cards </li></ul><ul><li>Calculating Interest Charges </li></ul><ul><ul><ul><li>If a credit card statement is not paid in full by the date given, the customer will be charged interest. The interest charge is determined by calculating the number of days since the purchase and multiplying it by the daily interest rate. </li></ul></ul></ul>On Jan. 5, Monica made \$400 in purchases on her credit card. Her monthly statement issued Jan 20 was received and Monica did not pay it. Her next monthly statement issued on Feb. 20 was received. What will be her interest charges? Unit 1 – Income & Debt Outcome 1-3: Solve problems involving credit card buying
10. 10. <ul><li>Credit Cards </li></ul><ul><li>Calculating Minimum Payments </li></ul><ul><ul><ul><li>When a statement is received, a minimum payment will be shown on the statement. Generally it is 5% of the closing balance or \$10, whichever is greater. </li></ul></ul></ul>Alex’s monthly statement shows a previous balance of \$963.45. During the month Alex made a payment of \$500 and purchases goods totaling \$626.95. Assume the interest charges for the month are \$17.50. Calculate his new balance. Calculate Alex’s minimum payment for his new balance. Unit 1 – Income & Debt Outcome 1-3: Solve problems involving credit card buying
11. 11. Textbook Assignment: Page 44 - 46 Questions 1 - 7 Unit 1 – Income & Debt Outcome 1-3: Solve problems involving credit card buying
12. 12. Video Credit Cards: Living With Plastic Unit 1 – Income & Debt Outcome 1-3: Solve problems involving credit card buying
13. 13. <ul><li>Credit Cards Newscast Assignment </li></ul><ul><li>Many actual news stories in recent years have described the growth in credit card use among young people. They have noted that there have been large increases in: </li></ul><ul><li>The number of credit cards the typical young person has. </li></ul><ul><li>The dollar balance carried on these cards. </li></ul><ul><li>The interest paid on these cards. </li></ul><ul><li>The number of credit problems (e.g. bankruptcies) young people experience. </li></ul><ul><li>Your task is to develop and videotape a mock newscast on the subject. Each group must submit a script before any newscasts are video taped. </li></ul>Unit 1 – Income & Debt Outcome 1-3: Solve problems involving credit card buying