YourNewHome16WYB

=**Questions:**=
 * 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, 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?=

1. People use credit cards if they cannot pay something now. They can pay later with a credit card and it would go on their monthly statement. 2. An advantage of a credit card is that you can pay it off later. A disadvantage is that the credit card company charges you for interest and it's extra money on your statement. 3. Credit card is what you use if you want to buy now and pay later. Principal is the amount of money you owe each month. APR means annual percentage rate. Simple interest is you dont need to know the principal amount to pa your bills.Monthly payments are what you pay each month. 4.It can make your bill more expensive. 5. The most important thing Ive learned is that things are more expensive then they seem.

=Assignment #2=
 * 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) **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.
 * 4) 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.
 * 5) In pairs, discuss the following questions.The answers do not have to be written on the 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.
 * Based on this lesson, on your NewHomecodeinitials wiki page, answer the 5 QUESTIONS in Bold AT THE TOP of this NewHome assignment page. Provide evidence from the spreadsheet, Khan Academy or the online calculator to explain your answer. **


 * ** Item ** || ** Description ** || ** Item Value ** || ** Luxury **
 * Necessity ** ||
 * 46" TV || Sony Bravida 46" LCD TV || 1399 || Luxury ||
 * Xbox 360 || Xbox 360 Video Game || 259 || Luxury ||
 * Bed || Ella king Upholstered Bed || 699 || Luxury ||
 * Mattress || Simmons Beautyrest Recharge Luxury Pillowtop Mattress || 782 || Luxury ||
 * Sheets || Emily and Meritt Sheet set || 218 || Luxury ||
 * Towels || Extra Absorbent Bath Towel || 41 || Luxury ||
 * Pillows || Pillow Plush || 4 || Luxury ||
 * Refrigerator || French Door Refrigerator-Stainless Steel || 1399 || Luxury ||
 * Silverware || 20-piece stainless steele || 16 || Luxury ||
 * Plates || 6-piece dinner plate set || 16 || Luxury ||
 * Chairs || Tripton dining chair || 183 || Luxury ||
 * Couch || Carolyn Loveseat || 999 || Luxury ||
 * Lamp || Adesso Floor Lamp || 67 || Luxury ||
 * Computer || Macbook Rose Gold || 1299 || Luxury ||
 * Trash Can || Rubbermaid Commercial || 7 || Luxury ||
 * Coffee Maker || Mr Coffee Coffee Maker || 34 || Luxury ||
 * Toaster || Hamilton Beach 2-slice Toaster || 29 || Luxury ||
 * Vaccum || Robovac || 199 || Luxury ||
 * Dining Table || Seagrove sand rectangle table || 399 || Luxury ||
 * Rug || Safavieh California Silver Rug || 72 || Luxury ||
 * Phone || iPhone SE Rose Gold (pay monthly) || 16 || Necessity ||
 * Desk || Bekant Desk || 139 || Luxury ||
 * Desk Chair || MALKOLM Swivel Chair || 64 || Luxury ||
 * Washer || Samsung Front Load Washer || 752 || Luxury ||
 * Dryer || Samsung Electric Dryer || 752 || Luxury ||
 * Vanity || Frenchi 3 Piece Vanity set || 103 || Luxury ||