Nearpod version available
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.
In this personal finance lesson, students will learn to compound interest and amortization to calculate the cost of a car.
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