3.1 Credit Basics Due (10/7/22 SoC)

Last updated over 1 year ago

23 Nsɛmmisa

Hyɛ no nsow a efi ɔkyerɛwfo no hɔ:

Akwankyerɛ

Ɛhia

Day 2

ANALYZE: Understanding Amortization

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Part II: Reflection

Ɛhia

3.1 Credit Basics Due (10/7/22 SoC)

Last updated over 1 year ago

23 Nsɛmmisa

Hyɛ no nsow a efi ɔkyerɛwfo no hɔ:

In this lesson, you will learn to:

Correctly use fundamental vocabulary related to credit and lending
Explain how loan amortization and payments work
Understand how principal, interest rate, and term are critical components to evaluating credit options

Akwankyerɛ

In this lesson, you will learn to:

Correctly use fundamental vocabulary related to credit and lending
Explain how loan amortization and payments work
Understand how principal, interest rate, and term are critical components to evaluating credit options

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Have you ever borrowed from or lent money to someone? (UCS)

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Who did the loan involve?

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Did it work out the way you anticipated? Were both people happy at the end? (UCS)

Banking Explained – Money and Credit

Publisher: In a Nutshell - Kurzgesagt

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What is the relationship between people who save money in banks and people who borrow money from banks? (UCS)

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How does the bank make a profit? (UCS)

What is Credit? Loans, Mortgages, and Overdrafts explained

Watch this video and answer the questions on the right.

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What are the main advantages to a secured vs. unsecured loan? (UCS)

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What factors determine interest rates? (UCS)

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What is a danger of taking a variable rate loan? (UCS)

Understanding How Loan Payments Work

When loan payments are amortized, the total amount you owe every month remains constant

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Why does the amount of INTEREST you owe decrease every month? (UCS)

Day 2

ANALYZE: Understanding Amortization

Part I: Categorize Different Types of Credit

For each TYPE OF CREDIT listed in the first column, you’ll categorize it in the remaining three columns, using the following descriptions:

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If you’re unsure where a type of credit belongs, you can use these links as a resource:

Types of Consumer Credit & Loans - Debt.org
The Difference Between Secured and Unsecured Debts - About Money
What Is the Difference Between Fixed- and Variable-Rate Financing? - CFPB

If you can’t find the answer using the links above, you can do your own internet search to help you complete the work.

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Part II: Reflection

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Why do people sometimes use credit to pay for items instead of just using cash?

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When applying for credit, is it preferable to receive a low interest rate or a high interest rate?

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Sometimes, lenders allow or require a downpayment before they extend you the loan. What would be the advantage to the lender? What would be the advantage to the borrower?

Exit Ticket

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What makes a loan be categorized as secured?

It is secured when the borrower receives the loan amount from the bank

It is secured because it is backed up with some form of collateral

It is secured when someone co-signs on the loan

It is secured after all payments are made

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3.1 Credit Basics Due (10/7/22 SoC)

Day 2

ANALYZE: Understanding Amortization

Part II: Reflection

3.1 Credit Basics Due (10/7/22 SoC)

In this lesson, you will learn to:

In this lesson, you will learn to:

Have you ever borrowed from or lent money to someone? (UCS)

Who did the loan involve?

Did it work out the way you anticipated? Were both people happy at the end? (UCS)

Banking Explained – Money and Credit

What is the relationship between people who save money in banks and people who borrow money from banks? (UCS)

How does the bank make a profit? (UCS)

What is Credit? Loans, Mortgages, and Overdrafts explained

What are the main advantages to a secured vs. unsecured loan? (UCS)

What factors determine interest rates? (UCS)

What is a danger of taking a variable rate loan? (UCS)

Understanding How Loan Payments Work

Why does the amount of INTEREST you owe decrease every month? (UCS)

Day 2

ANALYZE: Understanding Amortization

Part I: Categorize Different Types of Credit

Part II: Reflection

Why do people sometimes use credit to pay for items instead of just using cash?

When applying for credit, is it preferable to receive a low interest rate or a high interest rate?

Sometimes, lenders allow or require a downpayment before they extend you the loan. What would be the advantage to the lender? What would be the advantage to the borrower?

Exit Ticket

What makes a loan be categorized as secured?

In this lesson, you will learn to:

In this lesson, you will learn to:

Have you ever borrowed from or lent money to someone? (UCS)

Who did the loan involve?

Did it work out the way you anticipated? Were both people happy at the end? (UCS)

Banking Explained – Money and Credit

What is the relationship between people who save money in banks and people who borrow money from banks? (UCS)

How does the bank make a profit? (UCS)

What is Credit? Loans, Mortgages, and Overdrafts explained

What are the main advantages to a secured vs. unsecured loan? (UCS)

What factors determine interest rates? (UCS)

What is a danger of taking a variable rate loan? (UCS)

Understanding How Loan Payments Work

Why does the amount of INTEREST you owe decrease every month? (UCS)

Part I: Categorize Different Types of Credit

Why do people sometimes use credit to pay for items instead of just using cash?

When applying for credit, is it preferable to receive a low interest rate or a high interest rate?

Sometimes, lenders allow or require a downpayment before they extend you the loan. What would be the advantage to the lender? What would be the advantage to the borrower?

Exit Ticket

What makes a loan be categorized as secured?

Which of the following is usually a secured debt?

Which of the following is a TRUE statement describing the benefits of an installment loan?

Which of the following is usually a secured debt?

Which of the following is a TRUE statement describing the benefits of an installment loan?