Introduction to Personal Finance Unit 3 Project Learning Goals Understand the concept of borrowing and how it relates to consumer credit Understand how to compare and contrast consumer loan options Imagine a person who is a revolving credit card user, which means they dont pay off the balance in full each month Recommend one credit card for someone with excellent credit, one credit card for someone with poor credit, and one credit card specifically for students To find the credit cards go to http www creditcards com Excellent Credit Explanation for card selection APR Grace Period Annual Fee Other Fees Bad or Poor Credit Explanation for card selection APR Grace Period Annual Fee Other Fees Student Credit Card Explanation for card selection APR Grace Period Annual Fee Other Fees What type of credit would be appropriate if the individual paid their balance in full every month What would be most important to this person when choosing a credit card If you were looking to get a new credit card, which features would be most important for you to pay attention to What would you want to make sure to avoid Real world examples please show your work Suppose Jim spontaneously decides to treat all his friends to burgers and fries He has already spent his excess cash from his paycheck, so he decides to put it on his credit card and pay for it later The total cost for the meal for his group of friends including the tip is $135 47 His credit card has an interest rate of 24 99 If he makes payments of $25 per month, how long would it take him to pay for that spontaneous purchase How much would Jim end up spending on this purchase How much interest did he pay N I Y PV PMT FV Now lets say Jim treats his friends a few times during the month and accumulates a debt of $746 53 on his credit card His credit card and has an interest rate of 24 99 If he makes payments of $25 per month how long would it take him to pay for this generosity which his friends appreciate but he cant currently afford How much would Jim end up spending on this purchase How much interest did he pay N I Y PV PMT FV What does this tell you about credit card usage What is the risk of using a credit card When is it a good thing How can you use a credit card responsibly

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Posted on Sep 02, 2024

Introduction to Personal Finance

Unit 3 Project

Learning Goals:

Imagine a person who is a revolving credit card user, which means they dont pay off the balance in full each month. Recommend one credit card for someone with excellent credit, one credit card for someone with poor credit, and one credit card specifically for students. To find the credit cards go to http://www.creditcards.com/.

Excellent Credit:	Explanation for card selection
APR: Grace Period: Annual Fee: Other Fees:
Bad or Poor Credit:	Explanation for card selection
APR: Grace Period: Annual Fee: Other Fees:
Student Credit Card:	Explanation for card selection
APR: Grace Period: Annual Fee: Other Fees:

What type of credit would be appropriate if the individual paid their balance in full every month? What would be most important to this person when choosing a credit card?

If you were looking to get a new credit card, which features would be most important for you to pay attention to? What would you want to make sure to avoid?

Suppose Jim spontaneously decides to treat all his friends to burgers and fries. He has already spent his excess cash from his paycheck, so he decides to put it on his credit card and pay for it later. The total cost for the meal for his group of friends including the tip is $135.47. His credit card has an interest rate of 24.99%. If he makes payments of $25 per month, how long would it take him to pay for that spontaneous purchase? How much would Jim end up spending on this purchase? How much interest did he pay?

Now lets say Jim treats his friends a few times during the month and accumulates a debt of $746.53 on his credit card. His credit card and has an interest rate of 24.99%. If he makes payments of $25 per month how long would it take him to pay for this generosity which his friends appreciate but he cant currently afford? How much would Jim end up spending on this purchase? How much interest did he pay?

What does this tell you about credit card usage? What is the risk of using a credit card? When is it a good thing? How can you use a credit card responsibly?