Credit Cards/Finance Charge

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What is a Credit Card?

Back

A credit card is a plastic card issued by a financial institution that allows the cardholder to borrow funds to pay for goods and services, with the agreement to pay back the borrowed amount plus any applicable interest.

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What is a Finance Charge?

Back

A finance charge is the cost of borrowing money, typically expressed as a percentage of the amount borrowed, which includes interest and any additional fees.

Tags

CCSS.7.RP.A.3

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What is a Down Payment?

Back

A down payment is an initial payment made when something is bought on credit, representing a portion of the total purchase price.

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How is a Monthly Payment calculated?

Back

A monthly payment is calculated based on the total amount financed, the interest rate, and the loan term, often using the formula for an amortizing loan.

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CCSS.8.EE.C.7B

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What does the equation y = mx + b represent?

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This equation represents a linear relationship where 'y' is the dependent variable, 'm' is the slope, 'x' is the independent variable, and 'b' is the y-intercept.

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CCSS.8.EE.B.6

CCSS.8.F.A.3

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In the equation y = 20x + 50, what does 20 represent?

Back

In this equation, 20 represents the monthly payment amount.

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CCSS.HSF.LE.B.5

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In the equation y = 57.25x + 100, what does 100 represent?

Back

In this equation, 100 represents the down payment amount.

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CCSS.HSF.LE.B.5

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What is the significance of the slope in a linear equation related to payments?

Back

The slope indicates the rate of change of the dependent variable (payment) with respect to the independent variable (time or number of payments).

Tags

CCSS.8.EE.B.5

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What is the formula to calculate the total cost of a loan?

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Total Cost = Down Payment + (Monthly Payment x Number of Payments) + Finance Charges.

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CCSS.7.RP.A.3

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What is the difference between a down payment and a monthly payment?

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A down payment is an initial payment made at the time of purchase, while a monthly payment is a recurring payment made over the term of the loan.