Cash or Credit?
That is THE Question....
What is interest?
Record the definition on the note sheet you were given.
Car Deals!
What you pay for a car is very dependent on what the interest rate is. You want a low interest rate when you are doing the purchasing!
Buying a house!
When you make a big purchase like a house you want to have a very low interest rate. It is a long term purchase (often for 15, 20, 25 or 30 years), so the interest rate makes a huge difference in the final cost of the house.
Bank Accounts!
When interest rates are low you will receive very little interest on your deposits. This is not good for the consumer (you). Sometimes the more you deposit the better rate you will get.
There is a problem.
Paying with the credit card requires you to pay interest. Interest is the amount you are charged to borrow the money. Every time you charge something on a credit card you are really borrowing the money to pay for the item you have bought. Watch the video below which will explain how you find the interest. Use the video to complete your note sheet.
Simple Interest Tutorial