Credit, Loans and Investments
Objectives
Start
Story
Credits & Loans
Investments
Amortization Tables
Summary
Story
Credits & Loans
Credit is the ability to borrow money with the promise of repayment, typically with interest.
Money borrowed can be used for many purposes
For spending in goods and services
For investments
Types of Credit
Revolving Credit
Installment Credit
Open Credit
In a loan a lender gives a borrower a set amount of money that must be repaid with interest over a predetermined time.
Example 2:
Mortgage
Example 1:
Student Loan
Financial aid to help education expenses, tuition, living costs
Secured loan used to purchase real estate.
Financial entities need to know if you're eligible for taking a credit.
They use credit score to evaluate your ability to pay:
A good credit score is above 700
Investments
Investments involve allocating money into assets with the expectation of generating a return.
Any citizen can invest in:
Real State
Fixed Deposits
Stocks
Depending on the amount of capital you'd invest in,
the use of a diversified portfolio can help mitigate risks.
Amortization Tables
An amortization table details each payment on a loan over time,
breaking down principal and interest.
Here: P=$200,000 r=4% PMT=$199 n=6 months t=1month (monthly)
Example:
For a $1,000 credit card loan at 4% over 6 months, the monthly payment is approximately $199.
Amortization table
Example 1: Let's create an amortization table for the credit card loan discussed before.
Summary: Finance
investments
credits
Fixed deposits
open
Real state
stocks
revolvenment
Installment
loans
Great job!
See you next time
Welcome 6th graders!
A journey soon begin through Social Science experiences!
9TH-REVIEW-OF-FUNCTIONS-AND-GRAPHS-EN © 2024 by CASURID is licensed under CC BY-NC-ND 4.0
MA.912.FL.3 Describe the advantages and disadvantages of short-term and long-term purchases. MA.912.FL.3.3 Solve real-world problems involving present value and future value of money. MA.912.FL.3.4 Explain the relationship between simple interest and linear growth. Explain the relationship between compound interest and exponential growth and the relationship between continuously compounded interest and exponential growth. ELD.K12.ELL.MA.1 English language learners communicate information, ideas and concepts necessary for academic success in the content area of Mathematics. ELA.K12.EE.3.1 Make inferences to support comprehension.
MATERIAL
It is highly advised to have:
- Grid paper.
- Pencils of different colors.
- Eraser.
- A rule.
- A calculator.
- Geogebra installed on your phone/tablet/computer (or use online version).
WEEK 31-CREDIT,-LOANS-AND-INVESTMENTS
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Transcript
Credit, Loans and Investments
Objectives
Start
Story
Credits & Loans
Investments
Amortization Tables
Summary
Story
Credits & Loans
Credit is the ability to borrow money with the promise of repayment, typically with interest.
Money borrowed can be used for many purposes
For spending in goods and services
For investments
Types of Credit
Revolving Credit
Installment Credit
Open Credit
In a loan a lender gives a borrower a set amount of money that must be repaid with interest over a predetermined time.
Example 2: Mortgage
Example 1: Student Loan
Financial aid to help education expenses, tuition, living costs
Secured loan used to purchase real estate.
Financial entities need to know if you're eligible for taking a credit.
They use credit score to evaluate your ability to pay:
A good credit score is above 700
Investments
Investments involve allocating money into assets with the expectation of generating a return.
Any citizen can invest in:
Real State
Fixed Deposits
Stocks
Depending on the amount of capital you'd invest in,
the use of a diversified portfolio can help mitigate risks.
Amortization Tables
An amortization table details each payment on a loan over time,
breaking down principal and interest.
Here: P=$200,000 r=4% PMT=$199 n=6 months t=1month (monthly)
Example: For a $1,000 credit card loan at 4% over 6 months, the monthly payment is approximately $199.
Amortization table
Example 1: Let's create an amortization table for the credit card loan discussed before.
Summary: Finance
investments
credits
Fixed deposits
open
Real state
stocks
revolvenment
Installment
loans
Great job!
See you next time
Welcome 6th graders!
A journey soon begin through Social Science experiences!
9TH-REVIEW-OF-FUNCTIONS-AND-GRAPHS-EN © 2024 by CASURID is licensed under CC BY-NC-ND 4.0
MA.912.FL.3 Describe the advantages and disadvantages of short-term and long-term purchases. MA.912.FL.3.3 Solve real-world problems involving present value and future value of money. MA.912.FL.3.4 Explain the relationship between simple interest and linear growth. Explain the relationship between compound interest and exponential growth and the relationship between continuously compounded interest and exponential growth. ELD.K12.ELL.MA.1 English language learners communicate information, ideas and concepts necessary for academic success in the content area of Mathematics. ELA.K12.EE.3.1 Make inferences to support comprehension.
MATERIAL
It is highly advised to have: