Credit vocab and calculating monthly payments

Front

What is a credit card?

Back

A credit card is a payment card that allows the cardholder to borrow funds from a pre-approved limit to pay for goods and services, with the obligation to repay the borrowed amount plus any applicable interest.

Front

What is a debit card?

Back

A debit card is a payment card that deducts money directly from the cardholder's checking account to pay for purchases, rather than borrowing money.

Tags

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RI.9-10.4

Front

What should you do if your credit or debit card is lost or stolen?

Back

You should report it immediately to the card issuer to prevent unauthorized transactions.

Front

What is a Personal Identification Number (PIN)?

Back

A PIN is a numeric code used to authenticate the identity of the cardholder when using a debit card or certain credit cards.

Tags

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RI.9-10.4

Front

What does APR stand for, and why is it important?

Back

APR stands for Annual Percentage Rate, and it represents the yearly interest rate charged on borrowed money, which is important for understanding the cost of loans.

Front

How do you calculate the total amount paid on a loan?

Back

To calculate the total amount paid on a loan, you can use the formula: Total Payment = Principal + (Principal x Interest Rate x Time).

Tags

CCSS.7.RP.A.3

Front

What is the difference between a credit card and a debit card?

Back

A credit card allows you to borrow money up to a limit, while a debit card withdraws money directly from your bank account.

Front

What is the significance of reporting a lost or stolen card?

Back

Reporting a lost or stolen card is crucial to prevent unauthorized use and potential financial loss.

Tags

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RI.9-10.4

Front

What factors can affect the total cost of a loan?

Back

Factors include the principal amount, interest rate, loan term, and any additional fees.

Tags

CCSS.7.RP.A.3

Front

What is the typical use case for a debit card?

Back

A debit card is typically used for everyday purchases, where funds are directly withdrawn from the user's bank account.