Nearpod version available
Grade 9-12
,
Lesson
Earning Credit
Objective
Students will be able to:
- Define credit score and interest rate.
- Explain how lenders use credit scores to evaluate risk.
- Explain the kinds of behaviors that affect people’s credit score.
- Explain how credit scores affect interest rates for individual borrowers.
- Compare simple and compound interest.
- Use mathematical strategies to calculate monthly payments, given principal and interest rate.
- Calculate how compound interest affects the total cost of a major purchase.
- Compare the total cost of major purchases for people with low and high credit scores.
Standards
Concepts
![](https://econedlink.org/wp-content/uploads/legacy/EconEdLink-345-earning-credit.jpg 1w)
In this personal finance lesson, students will learn to compound interest and amortization to calculate the cost of a car.
Resources
Procedure
Click NEARPOD VERSION: EARNING CREDIT PART 1 and NEARPOD VERSION: EARNING CREDIT PART 2 to access an interactive version of the lesson powered by Nearpod: students interact and respond to questions on their device, and teachers will see their responses in real time!