1. BR: Copy the following terms and leave space to write definitions 1. Annual fee 2. Balance 3. bankruptcy 4. Cash advance 5. Collateral 6. cosigner 7. credit 8. Credit card 9. Creditor 10. Credit bureau 11. Credit history 12. Credit limit 13. Credit report 14. Debt 15. Default 16. Grace period 17. Interest rate 18. Minimum payment 19. Monthly payment 20. Principal 21. Term 22. Transaction fee 23. Interest 24. Debit cart

2. Calculating Interest  I=Interest  P= The principal which is the amount borrowed  R= Interest Rate  T=Time  Simple Interest:  I=PRT

3. 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?

4. 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?

5. 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?

6. 4. STEPHON BUYS NEW FURNITURE FOR $2500. HIS INTEREST RATE IS 10% OVER 2 YEARS. HOW MUCH INTEREST DOES HE PAY? HOW MUCH TOTAL DOES HE PAY?

7. Calculating Interest  PV= Present Value  r= interest rate as a decimal  N=number of time periods =FV  PV*(1+r) n=FV Compound Interest

8. Make these headings on a sheet of paper  Establishing credit  Maintaining credit  Using credit  Losing credit