Vocabulary 1
Definition: The max. amount that a person can owe (or spend) on a credit card at one time.
Credit Line, or Credit Limit
Definition: A person that signs a promissory note along with the borrower and agrees to pay back the loan if the original borrower does not.
Cosigner
Suppose you were approved for a 10-year unsubsidized loan at 6.25% in the amount of $4,300 to attend college. What simple interest amount will be added to your account by the end of your 4-year degree, assuming you decide to defer payments for a total of 4.5 years?
I = $1,209.38
I = PRT = $4,300 (x) 0.0625 (x) 4.5 = $1,209.38
Let's say you have a credit card that goes missing one day. You sign into your bank account to see that someone other than you goes on a shopping spree and racked up $100 worth of purchases on your card.
If you had a previous balance of $70 from last month and you reported the card missing AFTER the thief used it at the store, assuming no other purchases were made that month, what is the maximum liability you're accountable for paying on your credit card?
(*Think about what the law says and how much you're liable for if someone spends money on your credit card.)
Max. Liability = $120
- The previous balance is $70. You have to pay last month's statement regardless if your credit card is stolen or not, as that amount was spent well before your card went missing.
- The law says you are liable for a maximum of $50. If someone spent more than $50 on your stolen credit card (AFTER you report it missing), you only owe $50. No matter how much was charged to your account.
What year was Fortnite: Battle Royale officially released to the public?
A) 2013
B) 2015
C) 2017
D) 2019
C) 2017
Definition: When an individual purchases something to which they suddenly were attracted to and had no intention of buying beforehand.
Impulse Buying
Definition: When the monthly payment must be received by, for the credit card company.
Payment Due Date, or Due Date
Your parents decide to purchase a set of high quality speakers and subs for your vehicle, so all of the students can hear you from the parking lot of the school and go, WOW! Your parents final bill comes to a total of $2,995. They make a 10% down payment and put the rest on an installment plan for 18 months at $190 / month.
How much money will your parents spend on your upgraded sound system?
Total Payment = $3,719.50
Down Payment: $2,995 (x) 0.10 = $299.50
Installment Plan: $190 / month (x) 18 months = $3,420.
Grand Total: $3,420 (+) $299.50 = $3,719.50
Calculate the New Balance from the following Credit Card Statement:
Previous Balance: $1,355
Payments/Credits: $860
New Purchases: $499
Finance Charge: $17
New Balance = $1,011
What items get ADDED and SUBTRACTED?
Previous Balance (-) Payments (+) New Purchases (+) Finance Charge
$1,355 (-) $860 (+) 499 (+) $17 = $1,011
https://www.designrush.com/agency/mobile-app-design-development/trends/most-downloaded-mobile-apps
According to the source above, Rank the following Apps in order from most downloaded to least downloaded for the year 2024:
Snapchat - Spotify - TikTok - Facebook
#1 = TikTok
#2 = Facebook
#3 = Spotify
#4 = Snapchat
Definition: Describes the situation when interest builds up or adds to the principal amount.
Accrues
Definition: A law (act) that offers protection if a credit card is lost or stolen.
Truth-in-Lending Act
The Boys Basketball Coach decided to go shopping and purchase shoes for his players. The total amount of money spent on shoes came out to $4,500. Coach agreed to buy the shoes on an installment plan, with a 20% down payment and 12 monthly payments of $325 each.
What is the finance charge on this installment plan?
Finance Charge = $300
Down Payment: 20% of $4,500 = $900
Monthly Payment Total: $325 / month (x) 12 months = $3,900
Finance Charge: Monthly Payment Total (+) Down Payment (-) Items Purchased: $3,900 + $900 - $4,500 = $300
You swipe your credit card a handful of times throughout the month and rack up some debt. Calculate your average daily balance of the credit card (*Don't forget to count how many days there are for this particular month:)
5 days @ $300
10 days @ $433
7 days @ $508
9 days @ $569
Avg. Daily Balance = $467.97
Average Daily Balance = Sum of all the money owed (÷) Number of Days
(5 x $300) + (10 x $433) + (7 x $508) + (9 x $569) (÷) 31 Days = $467.97
If you are diagnosed with Alice in Wonderland Syndrome, what problem do you have?
A) You have an addiction to card games
B) Your perception of reality becomes distorted
C) You are incapable of drifting off into your own world
D) You begin growing grey hair at birth
B) Your perception of reality becomes distorted
https://ychef.files.bbci.co.uk/624x351/p0f8jbdw.jpg
Definition: An involuntary deduction from an employee's paycheck, often done by court order.
Wage Garnishment
Definition: A need-based student loan, which borrowers can defer interest payments for a period of time.
Federal Direct Subsidized Loan
Mr. Aftuck decides to take out an 8-year loan, for $3,800,000 at 4.90% APR. Why? So we can renovate the gym and install 5,000 seats for fans to attend volleyball / basketball games.
Use the formula below to calculate the monthly payment on this pricy upgrade: https://ecdn.teacherspayteachers.com/thumbitem/Monthly-Loan-Payments-Task-Cards-4115797-1686422156/original-4115797-3.jpg
Monthly Payment = $47,926.99
*Or the annual salary of a teacher. Every. Single. Month.
Calculate the Finance Charge on a credit card with an average daily balance of $1,250 and a 30% APR:
Finance Charge = $31.25
Finance Charge = Average Daily Balance (x) MONTHLY APR
To calculate MONTHLY APR, divide the APR by 12, and change that percent into a decimal. (30% ÷ 12 = 2.5% = 0.025)
$1,250 x 0.025 = $31.25
When it was brand new, the iPhone 16 Pro Max sold for $1,199. But do you know how much money it actually cost Apple to produce one of those phones?
A) $485
B) $525
C) $685
D) $825
A) $485 (Which is a profit of $714 per phone sold!)
Video Link for iPhone 17 Cost: https://www.instagram.com/reel/DP9gWgZEd4E/?igsh=MWo5Y256dGZ1OXM0Zw==
Definition: A method of payment of a purchase / service over time.
Installment Plan
Definition: Describes the situation in which the minimum payment on a credit card is less than the interest that is being charged, so the amount owed over time actually increases rather than decreases.
Negative Amortization, or NegAm
If you take out a 1-year loan for $9,900 at 3.5% APR to pay for your friend's debt, what is
a) Your Monthly Payment
b) The total amount of money paid after all monthly payments are completed
c) Interest paid
Use the formula below to calculate the monthly payment plan: https://ecdn.teacherspayteachers.com/thumbitem/Monthly-Loan-Payments-Task-Cards-4115797-1686422156/original-4115797-3.jpg
a) Monthly Payment = $840.72
b) Total Money Spent = $10,088.64
c) Interest Paid = $188.64
Mr. Allen wants to borrow $79,000 to buy a brand new truck. His bank offers a 6.91% interest rate and he can afford to pay $550 per month. How long (in years, round to the nearest tenth) does the loan have to be in order for Mr. Allen to be able to purchase the truck?
Use the formula below to calculate the time (Don't forget to start the formula with a parentheses on top of the fraction, as well as the bottom portion. You may also use LOG instead of LN): https://www.physicsforums.com/attachments/34oea7a-jpg.170630/
Time = 25.5 years
Which of the following TWO news headlines are completely made-up?
A) Fhgfhdfdfdffgfgfgfgfgfgfgfg
B) Local Grandma Shatters World Record for Eyelid Pencil Sharpening
C) Zoo Separates 5 Parrots After the Birds were Caught Encouraging Each Other to Swear at Guests
D) Wife Stabs Husband with a Squirrel
E) Enraged Cow Injures Farmer with an "Utterly" Ridiculous Object
B) Local Grandma Shatters World Record for Eyelid Pencil Sharpening
E) Enraged Cow Injures Farmer with an "Utterly" Ridiculous Object