NewHomeICS17MaroM


 * Couch || Black Leather Couch || $499 || Luxury ||
 * Bed Frame || Black Bed Frame || $249 || Luxry ||
 * Mattress || White Foam Mattress || $149 || Necessity ||
 * Table Set || Black Table, 4 Chair Set || $249.00 || Luxury ||
 * Dinnerware Set || 32- Piece Dinnerware Set || $39.99 || Necessity ||
 * Refrigerator || Stainless Steel Refrigerator || $399.00 || Luxury ||
 * Floor Lamp || White, steel || $42.49 || Luxury ||
 * Bedding Set || Blush, white, Bedding set || $69.99 || Necessity ||
 * Coffee Table || White, wooden || $116.99 || Luxury ||
 * Curtains || White || $24.48 || Luxury ||
 * Kitchen Utensil Set || 30- Piece black set || $19.99 || Necessity ||
 * Bedside Table || White, 1- drawer table || $76.49 || Luxury ||
 * Dresser || White, 6- drawer || $199.99 || Luxury ||
 * Oven- Microwave || Stainless Steel || $1,399.99 || Necessity ||
 * Towel Set || 6-pc grey towel set || $29.99 || Necessity ||
 * Wall Clock || Old fashioned wooden clock || $47.49 || Luxury ||
 * Bath Mat || Coral, white, patterned || $13.50 || Luxury ||
 * Rug || Navy blue,white, patterned || $112.19 || Luxury ||
 * Lamp || Ceramic Table Lamp || $33.99 || Luxury ||
 * Ceiling Fan || With Light, brown || $51.76 || Necessity ||
 * Bookshelf || Grey with glass doors || $170.52 || Luxury ||
 * Desk Chair || White Fur, has wheels || $79.88 || Luxury ||
 * Desk || White, clear, L-shaped || $179.94 || Luxury ||
 * Dish Washing Machine || Stainless Steel || $699.99 || Luxury ||

> . Copy the completed spreadsheet and paste in on your NewHomecodeinitials page below the purchases for you new home spreadsheet.
 * Assignment:**
 * 1) Create a new wiki page for you to use called **NewHomecodeinitials.**
 * 2) Open your student_purchases spreadsheet in Open Office. Select the cells with data. use Ctrl C to copy the data. On your NewHome wiki page. paste the data (Ctrl V). Save the page. (Do not worry if you have not spent $10,000 or have not bought 21 items.) (See sample page)
 * 3) Complete the Compound Interest spreadsheet with Mrs. Carrier. Determine what your monthly paywould would have to be to pay off the $10.000 with 15% APR making regular payments for 36 months
 * 1) **On Khan Academy view:** Introduction to Interest (simple and compound) You will not be required to make calculations based on Khan Academy example. However,watch it to better understand the relationships of the principal (balance owed), the Average Percentage Rate (APR), the interest calculations, and the monthly payments. Note that although many of you were surprised at the relationship between the principal (balance owed) and monthly payments, the formula used for the calculations on the student_purchases spreadsheet was much simpler than the actual calculations a credit card company would use.
 * 2) Experiment with an online Calculator: Simple Interest Calculator Enter a principal value of $10,000. Enter an interest rate of 15%. Calculate for 5 years. Experiment with other values and percentages and years. Answer the following questions on your wiki page.
 * Making only the minimum monthly payment will get you out of debt quicker? True or False. Justify your answer with examples.
 * The higher the interest rate, means you will pay less interest in the long run? True or False. Justify your answer with examples.
 * Paying down on the principal will get your out of debt faster? True or False. Justify your answer with examples.
 * You should pay off your credit card bill every month? True or False. Justify your answer with examples.


 * 1) Read the book Smart Spending on MyOn. Copy the terms below to your NewHOmecodeinitials page. As you read the book, define the terms. Put the definitions on your wiki page.
 * discretionary spending
 * net worth
 * giving
 * savvy shopping
 * budget
 * debt
 * credit card pros and cons
 * debit card pros and cons
 * borrow and downpayment
 * APR
 * credit score
 * public and private colleges

> || Principal || %/month || Amount Due || Payment || > || $10,000 || 1.25% || $10,125 || $350 || > || $9,775 || 1.25% || $9,897 || $350 || > || $9,547 || 1.25% || $9,667 || $350 || > || $9,317 || 1.25% || $9,433 || $350 || > || $9,083 || 1.25% || $9,197 || $350 || > || $8,847 || 1.25% || $8,957 || $350 || > || $8,607 || 1.25% || $8,715 || $350 || > || $8,365 || 1.25% || $8,469 || $350 || > || $8,119 || 1.25% || $8,221 || $350 || > || $7,871 || 1.25% || $7,969 || $350 || > || $7,619 || 1.25% || $7,714 || $350 || > || $7,364 || 1.25% || $7,456 || $350 || > || $7,106 || 1.25% || $7,195 || $350 || > || $6,845 || 1.25% || $6,931 || $350 || > || $6,581 || 1.25% || $6,663 || $350 || > || $6,313 || 1.25% || $6,392 || $350 || > || $6,042 || 1.25% || $6,118 || $350 || > || $5,768 || 1.25% || $5,840 || $350 || > || $5,490 || 1.25% || $5,558 || $350 || > || $5,208 || 1.25% || $5,273 || $350 || > || $4,923 || 1.25% || $4,985 || $350 || > || $4,635 || 1.25% || $4,693 || $350 || > || $4,343 || 1.25% || $4,397 || $350 || > || $4,047 || 1.25% || $4,098 || $350 || > || $3,748 || 1.25% || $3,795 || $350 || > || $3,445 || 1.25% || $3,488 || $350 || > || $3,138 || 1.25% || $3,177 || $350 || > || $2,827 || 1.25% || $2,862 || $350 || > || $2,512 || 1.25% || $2,544 || $350 || > || $2,194 || 1.25% || $2,221 || $350 || > || $1,871 || 1.25% || $1,894 || $350 || > || $1,544 || 1.25% || $1,564 || $350 || > || $1,214 || 1.25% || $1,229 || $350 || > || $879 || 1.25% || $890 || $350 || > || $540 || 1.25% || $547 || $350 || > || $197 || 1.25% || $199 || $350 || > || -$151 || 1.25% || -$153 || $350 || > || -$503 || 1.25% || -$509 || $350 ||
 * Answers/Responses:**
 * 1) DONE
 * 2) DONE
 * || || APR= 15% || Compound Interest || ||

At $350 a month, you will be able to pay off the 10,000 in approximately 39 months.

5. At a **$10,000** value with **15%** interest for **5 years**, you will owe **$17,500.00**. a) **FALSE**. Making only the minimum payment on debt will not get you out of it faster, you should pay as much as you can and not the minimum amount. b) **FALSE**. The higher the interest rate, the higher the amount you have to pay is. For example, at a **$10,000** value with **25%** interest for **5 years**, the amount is **$22,500.00.** c) **TRUE**. Paying down on the principal will get you out of debt faster because you're paying the full amount all at once. However, this could be difficult to do because not many people could afford paying a large amount all at once. d) **TRUE**. You should pay off your credit card bill every month because it is a **bill**. Also, if the minimum amount on the bill is not paid on time or at all, the bank will get you on interest.


 * discretionary spending- things that aren't needed or aren't basics of life (wants)
 * net worth- the amount left after you subtract what you owe from what is already yours
 * giving- donating money or other things to make the world a better place and to feel good
 * savvy shopping- smart shopping that is well planned out and researched before making purchases
 * budget- a well thought out plan on how to spend your money
 * debt- money owed
 * credit card pros and cons- PROS: instant gratification/convenience, tracking how much you spend, rewards on what you buy, and credit history. CONS: too convenient, pay interest, no access to credit cards.
 * debit card pros and cons- PROS: accepted everywhere, convenient, fast, good for tracking how much is spent, and easier to access a debit card. CONS: pay many fees, doesn't help credit history, if misplaced, is susceptible to fraud more easily
 * borrow and downpayment- money that is taken and used that is intended to be returned eventually, the initial payment when something is bought on credit
 * APR- Annual Percentage Rate, interest expressed over a year-long period of time
 * credit score- it's used by banks which helps them decide if they should loan you money and at what interest rate, important to have a good score in order to purchase large items such as a car or a house
 * public and private colleges- Public colleges are usually thought of as less expensive than private colleges, yet this is not always true. Private colleges usually offer a large variety of grants and scholarships that added up, will equal a smaller amount than a public college.

=**Questions:**=

__**ANSWERS**__:
 * 1) =Why do people use credit cards?=
 * 2) =What are advantages and disadvantages of credit cards?=
 * 3) =What do the following terms mean? credit card, principal, APR, simple interest, compound interest, monthly payments=
 * 4) =How can understanding the math calculations for the principal, APR, simple and compound interest, and monthly payments of credit card debt affect your overall financial situation in the future?=
 * 5) =What is the most important idea you have learned from this lesson?=
 * People use credit cards because it is an easy, convenient way to pay for things. In other ways, a credit card is considered a loan because it is not your own money. Therefore, if you need something right away but is too expensive, you can use a credit card to pay for it.
 * Some advantages of using a credit card is that you can buy things even if you don't have the money for it at the time and it is convenient because you don't need to count out money, you just swipe a card. Some disadvantages of using these cards are that it is not your money and you will have to pay it back eventually. Another disadvantage is that using a credit card too often will get you into debt.
 * credit card pros and cons- PROS: instant gratification/convenience, tracking how much you spend, rewards on what you buy, and credit history. CONS: too convenient, pay interest, no access to credit cards.
 * credit card: a card where the holder can purchase things using credit (money that you will pay back later), principal: the original sum of money that was lent,
 * APR: Annual Percentage Rate, interest expressed over a year-long period of time, simple interest: the way of calculating the interest charge on a loan, compound interest: the addition of interest to the original sum of the loan, monthly payments: a method of payment to pay a certain amount per month to pay something
 * If you understand all of these things, your financial situation will become better in the future because you will not spend recklessly and you will understand that using a credit card to a certain extent can be a bad thing.
 * The most important idea in this lesson is the idea of a cedit card because they can be really helpful or get you into financial trouble. There are consequences on how your money is spent and even tiny decisions will effect your future.