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Grade 9-12
,
Lesson
Earning Credit
Objective
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.