Peterson's - FAABteachersmanual (Page 27)

Teacher's Manual

Page 27

They can walk around the room, write down all of their purchases with the
specific amounts, and come up with a total not to exceed $3,000.

4. When the students have completed the purchasing phase of the game,

tell them to recheck their total amounts. Now tell the students that they
must work out the amount of interest and total cost of the purchases if
they use a credit card with an 18% APR, minimum payments of 2.5%,
and the following amounts of time to pay off the charges.

a. 1 year?
b. 2 years?
c. 5 year?
d. 10 years?
e. 20 years?

When everyone has completed the task, review their answers, and
then tell the students that credit card problems can become severe
when a person has three, four, or more lines of credit that are at their
maximum limits. The moral? Be careful how you use your credit
cards.

Materials: Calculators, computers, or books with amortization schedules,
pictures of objects mounted on poster board with prices written on each card,
Overhead 12, projector & screen.


Assignment: Read chapter 7 & 8 in The Financial Aid Answer Book. In the next
session, the focus will be on the CLEP.