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Name: ______________________ Class: _______ Date: _______Cost of Credit OrganizerDirections: In your own words, respond to the questions in the spaces provided.1. What factors are included to calculate interest?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________2. What is the formula for calculating simple interest?________________________________________________________________________________________________________________________________________________________________________________________________3. How is time determined for a loan for each of the provided lengths?Years ___________________________________________________________Months__________________________________________________________Days____________________________________________________________4. How is a maturity date calculated?________________________________________________________________________________________________________________________________ ________________________________________________________________ 5. How is a decreasing loan payment calculated?________________________________________________________________________________________________________________________________________________________________________________________________6. What is APR? __________________________________________________________________________________________________________________________________________________________________________________7. What is disclosed in APR?________________________________________________________________________________________________________________________________________________________________________________________________ Name: ______________________ Class: _______ Date: _______Maturity Date ActivityDirections: Calculate the maturity dates in the spaces provided.Date loan madeTime length of loanMaturity Date1. January 1510 days2. August 1030 days3. May 545 days4. October 2490 days5. March 34 months6. January 12 6 monthsName: ______________________ Class: _______ Date: _______Converting Time and Percents ActivityDirections: Convert the provided time and percents into decimals in the spaces provided. Round answers to the nearest hundredth for time conversions. Time:1 month =________3 months =________6 months =________9 months =________1 year 6 months =________2 years 3 months =________10 years 4 months =________15 years=________Percent: .4% =________ 8% =________ 10% =________ 15% =________ 17.5% =________ 18% =________ 22.5% =________ 25% =________Name________________________________ Class__________ Date___________Simple Interest ActivityDirections: Calculate the cost of credit and record it in the interest column. Use the simple interest rate formula: I=P * R * T.PrincipalInterest RateTimeInterest$1504%3 months$1.50$1504%6 months$30010%6 months$30010%9 months$1,0008%12 months$1,0008%18 months$10,00018%1 year$10,00018%2 years and 3 months$180,0005%15 years$180,0005%30 yearsDirections: Provide responses to the provided questions.What is the relationship between the time length of a loan and interest? ____________________________________________________________________________________________________________________________________________Why are time and percents converted into decimals? ____________________________________________________________________________________________________________________________________________How should debtors compare credit costs among options? ____________________________________________________________________________________________________________________________________________Why is it important for debtors to compare credit cost among options?____________________________________________________________________________________________________________________________________________Name: ______________________ Class: _______ Date: _______Installment Interest ActivityDirections: Calculate the total payment for a loan in the spaces provided. Loan: Decreasing Loan Payment Schedule$1,500 Car loan, 12% interest rate, monthly payments are $100 plus interestUnpaid Balance * Interest rate = Interest (Remember: The amount of interest is based on the portion of the year.)Interest + Loan Repayment = Total PaymentMonthsUnpaid BalanceInterestLoan RepaymentTotal Payment1$1,500$15$100$11523456789101112131415TotalsDirections: Provide responses to the provided questions.Is this purchase worth the cost? Why or Why not?________________________________________________________________________________________________________________________________________________________________________________________________________What economic and personal factors can affect interest rates?_________________________________________________________________________________________________________________________________________________________________________________________________________Name________________________________ Class__________ Date___________Main Factors for Granting Credit and Credit Documents OrganizerDirections: Describe the listed factors examined for granting credit and credit documents in the spaces provided. Section AFactors for Granting CreditThree C’s of CreditCredit ApplicationDocumentation of Credit DataCredit BureausFactors for Granting CreditThree C’s of CreditCredit ApplicationDocumentation of Credit DataCredit BureausMain Factors for Granting Credit and Credit Documents Organizer ContinuedSection BDirections: Describe the listed credit documents.3314700106680Statement of Credit00Statement of Credit114300106680Credit Contract00Credit Contract308610015240000-1047753238500Name: ______________________ Class: _______ Date: _______Credit Application Content ActivityDirections: Respond to the questions in the spaces provided.What information on the individual and business credit applications is similar?What information on the individual and business credit applications is different?State in your own words the possible reasons for differences in individual and business credit applications.____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ................
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