YourNewHome

=**Questions:**=
 * Students. Do not enter data on this page. This is the assignment page. **
 * 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?=

=**Assignment #1**=
 * Instructions**: You have just received a credit card in the mail that seems to be a pretty good deal. They give you a credit line of $10,000 and the interest rate is a cool 15% fixed APR. Your assignment is to go out on the web and search for items that you would like to have. I want you to max out your imaginary credit card. As you make purchases, write them down in the spreadsheet, along with a description of the item, the cost and a hyperlink. You will be required to purchase a minimum of 25 different items and you cannot spend the entire $10,000 on one thing. (based on spreadsheet lessons)

Download the student_purchases spreadsheet. Open it in Open Office Spreadsheet. Save it as 8 YourlastName, FirstInitial home in My Documents. After you have completed the exercise, save it again in My Documents then print out a copy of the spreadsheet. Make sure your name is on it.

Note: You will need to do some price shopping. Part of this lesson is to make you aware of cost, and you will want to make wise use of your money.




 * || 4 = Advanced || 3 = Proficient || 2 = Developing ||
 * Purchase Price || Product was researched and price was reasonable || Product could have been purchased at a much lower cost || No price listed ||
 * Type of Item || All item types were listed as luxury, or necessity. || 2 -3 items types not specified or type was non necessity or luxury item. || Item type was not specified. ||
 * Link to the item || ALL items contained links. No Dead links. || All items contained links. 1 – 3 Broken Links || 4 or more broken links or no links provided. ||

=Assignment #2= > . Copy the completed spreadsheet and paste in on your NewHomecodeinitials page below the purchases for you new home spreadsheet.
 * 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


 * 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, the online calculator, or the Smart Spending book to explain your answer. **


 * FYI but not part of the assignment:**
 * For additional information on Khan Academy:**
 * Interest Part 2
 * Annual Percentage Rate
 * Online Calculator**
 * Compound Interest Calculator
 * Are debit cards better? **
 * How Big Banks Turn Prisons into Profit Centers