Credit+Card+Mystery+Activity

[|Credit Card Mystery] at Econedlink.org

After you have finished and emailed both quizzes, go to the Federal Reserve's credit card repayment calculator. Enter a random total balance between $1000 and $2500. Your interest rate is 19.99%. Then, answer the following questions on a separate sheet of paper.

1. How long will it take you to pay off the balance if you only make the minimum payment.

2. How were the numbers (minimum monthly payment, time to pay off balance) figured out? [Click on the question marks to learn.]

Then, put a random number in the box that says: "I want to pay off my credit card balance in a specific number of years."

3. What will your monthly payment be?

Then, put in a hypothetical number in the box that says: "I want to pay a specific amount each month."

4. What was your hypothetical monthly payment amount? How many years will it take to pay off the balance with that monthly payment?

Lastly, take the following final quiz: Teens: are you smart enough for a credit card?

Then, write a quick paragraph on the same page you answered the above questions. In the paragraph, describe what you have learned about credit cards over the past week. Are you ready for a credit card? If not, when will you be?

Then turn it all in, and prepare for the Mayan Apocalypse.