1. Work on the credit card problem
Assignment, red pen, highlighter, notebook, graphing calculator, pencil
U3D12
Have out:
Bellwork:
Work on the credit card problem
total:

2. The first day of college you pick up a credit card application for a Citibank Credit Card. It boasts no interest for the first 7 months. However, in the fine print it mentions the rate goes up to 21.99% APR every month thereafter. Annual interest for a credit card is compounded monthly.
In the first year you decide to charge $2,200 for new bed sheets, a new TV, a new iphone… use your imagination. ($2200 is the average credit card debit for college students according to a 2008 study published by Nellie Mae.) Since your credit card does not charge interest for 7 months, you decide to wait to pay it back. Time slips by, and 5 years and 7 months later, you finally decide to pay off the card now that you are a college graduate.

3. I shouldn’t have signed up for all those credit cards in college!
1. How much will you owe after 7 months? (Recall: there is 0% interest for 7 months.) ___________
(We will ignore late fees, etc, throughout the problem.)
$2,200 +2
I shouldn’t have signed up for all those credit cards in college!
2. How much will you owe after the remaining 5 years when the interest jumps to 21.99% APR?
(Hint: t = 5 years and the interest is compounded monthly)
A(t) = total amount
A0 = ________
t = _______
n = ______
r = ______ A(5) = ____________ +1 +2 +1 +1
$2,200
5 years 12
0.2199 $ +2
3. How much more do you owe in interest only? (Hint: Take the difference between # 1 and # 2.)
– 2200 = +1
$4,340.44
total: +2

4. Insert cautionary tale here!=

5. Get together with some classmates and complete the STT.
It is time for the…
Study Team Test
Get together with some classmates and complete the STT.

6. Old bellwork

7. 10/21/10 Have out: Bellwork: Solve each problem.
Assignment, red pen, highlighter, notebook, graphing calculator, pencil
10/21/10
Have out:
Bellwork:
Solve each problem.
A new $1500 computer depreciates 31% per year.
How much will the computer cost in 4 years?
When will the computer be worth $1? Round to the nearest year.
2. Uniqua invests $1200 into an account earning 3.5% annual interest compounded quarterly. How much will she have in 15 years?

8. A new $1500 computer depreciates 31% per year.
How much will the computer cost in 4 years?
V(t) = k(m)t
initial value = $1500
V(t) = 1500(0.69)t
multiplier = 100% – 31%
= 69%
V(4) = 1500(0.69)4
= 0.69
V(4)  $340.01
time = 4
The computer will be worth about $ in 4 years.
b) When will the computer be worth $1? Round to the nearest year.
Use your calculator’s table to find the answer.
V(t) = 1500(0.69)t
1 = 1500(0.69)t
t  20 years
1500
1500
The computer will be worth $1 in about 20 years.

9. 2. Uniqua invests $1200 into an account earning 3
2. Uniqua invests $1200 into an account earning 3.5% annual interest compounded quarterly. How much will she have in 15 years?
A(t) = amount (value)
A0 = 1200
n = 4
r = 0.035
t = 15 $

10. It’s time to grade Quiz #2.
Take out a red pen.
It’s time to grade Quiz #2.