Vocab
Define principal?
The amount of money initially borrowed
Ms. McIntosh is the _____ teacher.
Ms. McIntosh is the BEST (or complimentary word) teacher.
There is a balance on a credit card for $1000 the APR is 20% how much would the company charge in total?
$1000 balance
$200 (20% APR)
Total: $1200
Which loan will cost you more in total and why?
Red Bank: Principal $1000/ interest rate 5%/Term 2yrs
Blue Bank: Principal $1000/interest rate 8%/Term 2yrs
Blue bank because it has a higher interest rate.
How many letters in the alphabet?
26 letters
Define interest/interest rate
A percentage of the principal you are charged for borrowing money.
When you borrow money you ____ interest. When you lend money you _____ interest.
When you borrow money you pay interest. When you lend money you earn interest.
A credit card has a balance of $5,000 and an APR of 10%. What would the total amount be if the balance never changed?
$5,500
$5000 balance + $500 (10% APR) = $5,500
Which loan will have smaller regular payments and why?
Red Bank: Principal $1000/interest rate 5%/Term 5yrs
Blue Bank: Principal $1000/interest rate 5%/Term 2yrs
Red bank because the term is longer so you can break it down into smaller payments.
What month is Ms. McIntosh's birthday?
June
What is compound interest?
Building interest upon interest.
When you borrow money the interest rate is _____. When you earn interest the interest rate is _____.
When you borrow money the interest rate is higher. When you earn interest the interest rate is lower.
You invest $1000 at a 5% interest rate how much interest would you have earned?
Interest earned: $1000 x 0.05= $50
Who has the 750 credit score and who has the 580?
Borrower A: Lower income, works part time, sometimes misses payments, 3 maxed out credit cards and can only make minimum payment.
Borrower B: Has 6 months of living expenses in a savings account and a retirement account that gets 10% of each paycheck. B has worked at the same job for 10 years. Hasn’t missed payment.
Borrower A: 580 credit score
Borrower B: 750 credit score
When is kendrick lamar's birthday month?
June 17, 1987
What is term?
The amount of time you have to repay
In order to make money from stocks you must sell ____ and buy ______.
In order to make money from stocks you must sell high and buy low
Jenny charges $3600 on her credit card the first time she has it. How much does she have to budget per month to pay off her credit card balance before the year ends?
$3600/12 months = $300 per month
What are dividends?
a) Money earned by selling stock.
b) Money that companies give to their employees as a bonus.
c) Extra profits that companies give to shareholders.
d) Money that companies pay to grow the company.
c) Extra profits that companies give to shareholders.
What was Taylor Swifts first big song?
Tim McGraw
What does APR stand for?
“Annual percentage rate” charged for borrowing money. This is the percentage used to figure out how much interest you owe on your unpaid balance.
With a ______ credit score you will have a ______ interest rate meaning you will pay _______.
With a higher/lower credit score you will have a higher/lower interest rate meaning you will pay more/less overall.
Year 1: You invest $1000 at a 5% interest rate. At the end of the year you have $1050.
New balance for year 2 is now $1050. How much would you have at the end of year 2 if you had compound interest (still 5%)?
$1,102.50
The interest is calculated on the new total of $1050 ($1050 x .05 interest rate =$52.50 new interest)
$1050+$52.50= $1,102.50
Which investment is the most risky?
- Stocks, Bonds, or Mutual Funds?
Stocks because the market is always changing.
What is GloRilla's real name?
Gloria