Earning Credit

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.