Today you will go through a simulation of using a credit card. You will look at several factors involved in signing up for a credit card such as fees and interest rates. Follow all directions and complete each step of the assignment.
1. Use your own sheet of paper and title the assignment "Credit Card Simulation".
2. First, use the financial dictionary (http://www.investopedia.com/dictionary/) to define the following terms:
- credit card-
- interest-
- principal-
- APR-
3. Open another tab or page and go to the following link: http://www.channelone.com/credit-card-simulator/
4. Select one of the three credit card choices.
5. Answer the following questions on your paper as you work through the simulation.
1. Which card did you select? Why?
2. Is there an introductory APR?
3. What is the fixed APR?
4. Which items did you buy on your shopping spree?
5. What is your minimum monthly payment?
6. How many months will it take you to pay in full?
7. Choose THREE of your items and tell me the following:
a) Original Cost
b) Interest Charges
c) Total Cost
8. If you doubled your minimum monthly payment, how many months would it take you to pay it off?
Answer the final question in AT LEAST 3 complete sentences.
9. Do you think that credit cards are a good idea or bad idea? EXPLAIN.
This will count as a quiz grade!! The more effort and work you put in, the better your grade will be!
No comments:
Post a Comment