1. “The cost of renting money”

2.  Credit Report  Length of months to pay off  Inflation/Economy  Government regulation

3. https://beta.creditkarma.com/ https://www.credit.com/free-credit-score/ The internet is full of websites that offer free credit reports.

5.  This score determines whether financial companies think you are a risk or not.  Credit scores can be influenced by:  Payment history  Outstanding debt  Credit history  Pursuit of new credit  Types of credit in use

6. Interest rates affect the total cost.

8.  1. Vehicle price - $49,330 (Dodge Ram)  Monthly payments - $823.60/72 months  What is the total amount you will spend on this vehicle?  2. Vehicle price - $40,500 (Chevy Camero)  Monthly payments - $676.18/72 months  What is the total amount you will spend on this vehicle?

9.  3. Vehicle price - $19,145 (Toyota Corolla)  Monthly payments - $319.64/72months  What is the total amount you will spend on this vehicle?  4. Vehicle price - $44,600 (Cadillac XTS Sedan)  Monthly payments - $744.63/72 months  What is the total amount you will spend on this vehicle?

10.  5. Vehicle price - $49,330 (Dodge Ram)  Monthly payments - $940.59/60 months  What is the total amount you will spend on this vehicle?  6. Vehicle price - $40,500 (Chevy Camero)  Monthly payments - $772.23/60 months  What is the total amount you will spend on this vehicle?

11.  7. Vehicle price - $19,145 (Toyota Corolla)  Monthly payments - $365.04/60months  What is the total amount you will spend on this vehicle?  8. Vehicle price - $44,600 (Cadillac XTS Sedan)  Monthly payments - $850.40/60 months  What is the total amount you will spend on this vehicle?

13.  9. $165,000 home at a 4.5% interest rate.  Monthly payments - $836.03/360 months  What is the total amount you will pay for this home?  10. $300,000 home at a 4.5% interest rate.  Monthly payments - $1,520.06/360 months  What is the total amount you will pay for this home?

14.  11. $165,000 home at a 3.5% interest rate.  Monthly payments - $956.93/240 months  What is the total amount you will pay for this home?  12. $300,000 home at a 3.5% interest rate.  Monthly payments - $1,739.88/240 months  What is the total amount you will pay for this home?

16.  Most credit cards have some form of grace period that allows you to pay off your entire debt interest free.  After the grace period interest rates will apply.  Watch out for cards that have “variable” interest rates. This means rates can rise at any time.  “Fixed” interest rates are more favorable.

17.  Principal: $2,000 - 20% Interest Rate  Total Minimum Payment: $60  Broken down -  Interest: $33.33  Principal: $26.67  Remaining Balance: $1,973.33 ($2,000 - $26.67)  In the end, you pay $4,240 in total over 15 years to absolve the $2,000 in credit card debt. The interest that you pay over the 15 years totals $2,240, higher than the original credit card debt.  An extra $10 of principal each month will save $1,000 total and save 7 years of payments.

18.  Accrued – to be added as a matter of periodic gain or advantage, as interest on money. Interest calculation equation: A = P(1 + rt) Total Accrued Amount Principal APR (Yearly) Time How many years The whole principal Which means you pay back the entire amount You can divide this number by 12 to get the monthly interest rate. If you change the interest rate to months change your years to months.

19.  https://www.youtube.com/watch?v=YeRNlG w8VF8 https://www.youtube.com/watch?v=YeRNlG w8VF8  Video about Interest Rates – 6:57  http://www.creditdonkey.com/history-of- credit.html http://www.creditdonkey.com/history-of- credit.html  Infographic about the History of Credit Cards  https://staff.rockwood.k12.mo.us/redmandav e/FM/Documents/Credit%20Card%20Statem ent.pdf https://staff.rockwood.k12.mo.us/redmandav e/FM/Documents/Credit%20Card%20Statem ent.pdf  Sample Credit Card Statement