Grade Level: 11 Name: Jann Coates

Social Studies Unit: Personal Economic Decisions

The completed unit must be sent electronically.

Ohio Standards Connection: Identify which ones will be emphasized.


Lesson Plan - continued 2


Lesson Plan – continued 3


Lesson Plan – continued 4


Lesson Plan – continued 5

*Required Components

Patricia Clayton: Summit County (SERRC-3) 9-14-06

United States Credit Card Use

1990 2003 Percent

Increase

______

Number of

People with 82 million 144 million 75%

Credit Cards

______

Amount $338 billion $1.5 trillion 350%

Charged

______

Average

Credit Card $2,550 $7,520 200%

Debt

from www.foxnews.com

Comparing Credit Card Payments Name ______

MONTH / BEGIN
BALANCE / MONTHLY
INT. RATE / INTEREST
CHARGE / ENDING
BALANCE / PAYMENT / NEW BALANCE
1 / $1000 / 1% / $10 / $1010 / $20 / $990
2 / $990
3
4
5
6
7
8
9
10
11
12
MONTH / BEGIN
BALANCE / MONTHLY
INT. RATE / INTEREST
CHARGE / ENDING
BALANCE / PAYMENT / NEW
BALANCE
1 / $1000 / 1% / $10 / $1010 / $100 / $910
2 / $910
3
4
5
6
7
8
9
10
11
12


Comparing Credit Card Payments

MONTH / BEGIN
BALANCE / MONTHLY
INT. RATE / INTEREST
CHARGE / ENDING
BALANCE / PAYMENT / NEW
BALANCE
1 / $1000 / 1% / $10 / $1010 / $20 / $990
2 / $990 / 1% / $9.90 / $999.90 / $20 / $979.90
3 / $979.90 / 1% / $9.80 / $989.50 / $20 / $969.50
4 / $969.50 / 1% / $9.70 / $979.20 / $20 / $959.20
5 / $959.20 / 1% / $9.59 / $968.79 / $20 / $948.79
6 / $948.79 / 1% / $9.49 / $958.28 / $20 / $938.28
7 / $938.28 / 1% / $9.38 / $947.66 / $20 / $927.66
8 / $927.66 / 1% / $9.28 / $936.94 / $20 / $916.94
9 / $916.94 / 1% / $9.17 / $926.11 / $20 / $906.11
10 / $906.11 / 1% / $9.06 / $915.17 / $20 / $895.17
11 / $895.17 / 1% / $8.95 / $904.12 / $20 / $884.12
12 / $884.12 / 1% / $8.84 / $892.96 / $20 / $872.96
MONTH / BEGIN
BALANCE / MONTHLY
INT. RATE / INTEREST
CHARGE / ENDING
BALANCE / PAYMENT / NEW BALANCE
1 / $1000 / 1% / $10 / $1010 / $100 / $910
2 / $910 / 1% / $9.10 / $919.10 / $100 / $819.10
3 / $819.10 / 1% / $8.19 / $827.29 / $100 / $727.29
4 / $727.29 / 1% / $7.27 / $734.56 / $100 / $634.56
5 / $634.56 / 1% / $6.35 / $640.91 / $100 / $540.91
6 / $540.91 / 1% / $5.41 / $546.32 / $100 / $446.32
7 / $446.32 / 1% / $4.46 / $450.78 / $100 / $350.78
8 / $350.78 / 1% / $3.51 / $354.29 / $100 / $254.29
9 / $254.29 / 1% / $2.54 / $256.83 / $100 / $156.83
10 / $156.83 / 1% / $1.57 / $158.40 / $100 / $58.40
11 / $58.40 / 1% / $.58 / $58.98 / $58.98 / - 0 -
12 / - 0 -


QUIZ Name ______

If you have ever studied a credit card bill, you may have noticed that the company typically gives the cardholder the option of paying a minimum monthly amount - usually about $20. Is it in the consumer’s best interest to pay such a small amount? You be the judge. Assume that the A.P.R. on a credit card account is 24 percent. The outstanding balance is $500, and the cardholder will make no other purchases during the year. The 2 percent monthly interest is calculated and added to the balance before the payment is applied.

Complete the table below for payments of $20 (minimum), $50, and $100 over a period of 12 months. Then answer the questions that follow.

MONTH / BAL. / INT. / PAY. / BAL. / INT. / PAY. / BAL. / INT. / PAY.
1 / $500 / $10 / $20 / $500 / $10 / $50 / $500 / $10 / $100
2
3
4
5
6
7
8
9
10
11
12

1. What will be the extra cost of interest to the consumer if he/she uses credit and pays only the minimum monthly payment for 12 months?

2. What will be the extra cost of interest to the consumer if he/she uses credit and pays $50 monthly for 12 months?

3. What will be the extra cost of interest to the consumer if he/she uses credit and pays $100 monthly for 12 months?

4. How might these extra costs of interest affect the consumer?

QUIZ Name ______

If you have ever studied a credit card bill, you may have noticed that the company typically gives the cardholder the option of paying a minimum monthly amount - usually about $20. Is it in the consumer’s best interest to pay such a small amount? You be the judge. Assume that the A.P.R. on a credit card account is 24 percent. The outstanding balance is $500, and the cardholder will make no other purchases during the year. The 2 percent monthly interest is calculated and added to the balance before the payment is applied.

Complete the table below for payments of $20 (minimum), $50, and $100 over a period of 12 months. Round amounts to nearest dollar. Then answer the questions that follow.

MONTH / BAL. / INT. / PAY. / BAL. / INT. / PAY. / BAL. / INT. / PAY.
1 / $500 / $10 / $20 / $500 / $10 / $50 / $500 / $10 / $100
2 / $490 / $10 / $20 / $460 / $9 / $50 / $410 / $8 / $100
3 / $480 / $10 / $20 / $419 / $8 / $50 / $318 / $6 / $100
4 / $470 / $9 / $20 / $377 / $7 / $50 / $224 / $4 / $100
5 / $459 / $9 / $20 / $334 / $7 / $50 / $128 / $2 / $100
6 / $448 / $9 / $20 / $291 / $6 / $50 / $30 / ~ / ~
7 / $437 / $9 / $20 / $247 / $5 / $50
8 / $426 / $8 / $20 / $202 / $4 / $50
9 / $414 / $8 / $20 / $156 / $3 / $50
10 / $402 / $8 / $20 / $109 / $2 / $50
11 / $390 / $8 / $20 / $61 / $1 / $50
12 / $378 / $8 / $20 / $12 / ~ / ~

1. What will be the extra cost of interest to the consumer if he/she uses credit and pays only the minimum monthly payment for 12 months?

$105

2. What will be the extra cost of interest to the consumer if he/she uses credit and pays $50 monthly for 12 months?

$62

3. What will be the extra cost of interest to the consumer if he/she uses credit and pays $100 monthly for 12 months?

$30

4. How might these extra costs of interest affect the consumer?

These extra interest costs will make the purchase price higher than original. They also will make paying off the purchase take longer, especially when making only a $20 monthly payment.


Attachment D

Name ______

1. Define credit and identify two reasons credit cards are used by consumers. Explain two effects

credit card misuse has on consumers. (4 points)

2. Explain how interest rates are calculated. Be sure to include the appropriate credit card

vocabulary. (4 points)

Patricia Clayton: Summit County (SERRC-3) 9-14-06

Attachment D-2

QUIZ Calculations

4 / 3 / 2 / 1
Correct calculation of 5 of the following:
·  monthly interest
·  monthly rate
·  monthly interest charge
·  ending balance and
·  new balance. / Correct calculation of 4 of the following:
·  monthly interest
·  monthly rate
·  monthly interest charge
·  ending balance and
·  new balance. / Correct calculation of 3 of the following:
·  monthly interest
·  monthly rate
·  monthly interest charge
·  ending balance and
·  new balance. / Correct calculation of
1-2 of the following:
·  monthly interest
·  monthly rate
·  monthly interest charge
·  ending balance and
·  new balance.

Final Assessment Question 1.

4 Points

The student wrote a thorough and complete definition of credit, (1 point)

identified two reasons why credit cards are used, and (1 point)

explained two explanations of the misuse of credit cards. (1 point for each)

3 Points

The student wrote a thorough and complete response to three of the above requirements.

2 Points

The student wrote a thorough and complete response to two of the above requirements.

1 Point

The student wrote a thorough and complete response to one of the above requirements.

0 Points

The student indicates no understanding of credit cards and their usage.

Final Assessment Question 2.

4 / 3 / 2 / 1
All of the following terms are used correctly: credit, A.P.R., interest, payment, balance / 4 of the following terms are used correctly: credit, A.P.R., interest, payment, balance / 3 of the following terms are used correctly: credit, A.P.R., interest, payment, balance / 1-2 of the following terms are used correctly: credit, A.P.R., interest, payment, balance

Patricia Clayton: Summit County (SERRC-3) 9-14-06