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Name: ______________________ Class: _______ Date: _______
Main Types of Credit OrganizerDirections: Summarize the main types of credit and include key term(s) listed at thebottom of this sheet. Give examples when possible in the spaces provided.
Type Details Examples
Key Terms: trade credit, loan credit, sales credit, finance charge, down payment,installment loan, promissory note, collateral, cosigner
Credit
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Name: ______________________ Class: _______ Date: _______
Credit: Primary or Promoter Product ActivityDirections: Complete the chart using advertisements that include credit offers tobusinesses, the government, and individuals.
Advertisement Type of credit offered Is credit the primaryproduct or is it used topromote the sale ofgoods and services?
1www.staples.com
Credit Cards:Business and personal
Used to promote the saleof goods or services
2
3
4
5
6
7
8
9
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Name: ______________________ Class: _______ Date: _______
Advantages and Disadvantages of Using Credit ActivityDirections: Determine the advantage or disadvantage of using credit for each
example in the spaces provided.
1. Rufus, the owner of A-1 Auto Mechanic, paid his business bills on timeduring the three years of operation.
____________________________________________________________________________________________________________________________
2. Rufus noticed seven purchases for products not used by the businesspossibly made by one of his employees on the business credit card.
____________________________________________________________________________________________________________________________
3. For filing taxes, Rufus has been able to use only credit card statements fromhis Business American Express to track purchases.
____________________________________________________________________________________________________________________________
4. Toni charged about $6,000 worth of clothes and accessories over severalshopping sprees. Toni can barely make the minimum payments of about$400 each month.
____________________________________________________________________________________________________________________________
5. Rufus submitted a year-end summary for his business credit card withouthaving to go through three years of receipts.
____________________________________________________________________________________________________________________________
6. Rufus issued a credit card to an employee to purchase supplies.____________________________________________________________________________________________________________________________
7. Rufus received free software by frequently using his business credit card.____________________________________________________________________________________________________________________________
8. Rufus suspects a customer stole several customer files from his desk.____________________________________________________________________________________________________________________________
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Name: ______________________ Class: _______ Date: _______
Directions: In your own words, respond to the questions in the spaces provided.Cost of Credit Organizer
1. What factors are included to compute interest?________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
2. How is simple interest calculated?________________________________________________________________________________________________________________________________________________________________________________________________
3. How is time determined for a loan for each of the provided lengths?
Years________________________________________________________________________________________________________________________________
Months________________________________________________________________________________________________________________________________Days
________________________________________________________________________________________________________________________________
4. How is a maturity date calculated?________________________________________________________________________________________________________________________________________________________________________________________________
5. How is a decreasing loan payment calculated?________________________________________________________________________________________________________________________________________________________________________________________________
6. What is disclosed in APR?________________________________________________________________________________________________________________________________________________________________________________________________
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Name: ______________________ Class: _______ Date: _______
Maturity Date ActivityDirections: Calculate the maturity dates in the spaces provided.
Date loan made Time length of loan Maturity Date
1. January 15 10 days January 25
2. August 10 30 days
3. May 5 45 days
4. October 24 90 days
5. March 3 4 months
6. January 12 6 months
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Name: ______________________ Class: _______ Date: _______
Converting Time and Percents ActivityDirections: Convert the provided time and percents into decimals in the spacesprovided.
Time:1. 1 month = ________
2. 3 months = ________
3. 6 months = ________
4. 9 months = ________
5. 1 year 6 months = ________
6. 2 years 3 months = ________
7. 10 years 4 months = ________
8. 15 years= ________
Percent:9. .4% = ________
10. 8% = ________
11. 10% = ________
12. 15% = ________
13. 17.5% = ________
14. 18% = ________
15. 22.5% = ________
16. 25% = ________
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Name________________________________ Class__________ Date___________
Simple Interest ActivityDirections: Calculate the cost of credit and record it in the interest column. Use thesimple interest rate formula: I=P * R * T.
Principal Interest Rate Time Interest
$150 4 3 months $18
$150 4 6 months
$300 10 6 months
$300 10 9 months
$1,000 8 12 months
$1,000 8 18 months
$10,000 18 1 year
$10,000 18 2 years and 3 months
$180,000 5 15 years
$180,000 5 30 years
Directions: Provide responses to the provided questions.
1. What is the relationship between the time length of a loan and interest?____________________________________________________________________________________________________________________________________________2. Why are time and percents converted into decimals?
____________________________________________________________________________________________________________________________________________3. How should debtors compare credit costs among options?
____________________________________________________________________________________________________________________________________________4. Why is it important for debtors to compare credit cost among options?
____________________________________________________________________________________________________________________________________________
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Name: ______________________ Class: _______ Date: _______
Installment Interest ActivityDirections: Calculate the total payment for a loan in the spaces provided.
Loan: Decreasing Loan Payment Schedule$1,500 Car loan, 12% interest rate, monthly payments are $100 plus interest
Unpaid Balance * Interest rate = Interest (Remember: The amount of interest is basedon the portion of the year.)Interest + Loan Repayment = Total Payment
Months Unpaid Balance Interest LoanRepayment
Total Payment
1 $1,500 $15 $100 $115
23456789101112
131415Totals
Directions: Provide responses to the provided questions.
1. Is this purchase worth the cost? Why or Why not?________________________________________________________________________________________________________________________________________________________________________________________________________
2. What economic and personal factors can affect interest rates?_________________________________________________________________________________________________________________________________________________________________________________________________________
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Name____________
____________________
Cla
ss__________
Date_______
____
ChoosingtheRight
CreditCardActivity
Directions:Compare
thecostofcreditforcreditca
rdsinthetableprovided.
Terms
CARD1
Business/Government
CARD2
Bu
siness/Government
CARD3
Individual
C
ARD4
In
dividual
Nameandtypeof
card
Annualfee
AnnualPercentage
Rate(APR)
OtherAPRs
Otherfees
Rankcardsas1or2,
1beingthemostcost
efficientcardand2theleast.
Explainranking
results.
Rank
cardsas1or2,
1beingthemostcost
efficie
ntcardand2theleast.Explainranking
results.
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Name________________________________ Class__________ Date___________
Main Factors for Granting Credit and Credit Documents OrganizerDirections: Describe the listed factors examined for granting credit and creditdocuments in the spaces provided. Include key term(s) listed at the bottom of the sheet.
Section A
Key term(s): credit bureau
Factors for Granting Credit
Three Cs of credit Credit application
Documentation of creditdataInformation provided by
credit bureaus
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Main Factors for Granting Credit and Credit Documents Organizer Continued
Section BDirections: Describe the listed credit documents.
Credit Contract Statement of Credit
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Name________________________________ Class__________ Date___________
Three Cs of Credit Scoring Guide
Advanced, Proficient, and Progressing levels are based on whether tasks criteria
are met.Advanced:All three of the proficient level criteria are met PLUS student provided visual
aid for each C.
Character Visual Aid
Capacity Visual Aid
Capital Visual Aid
Proficient:All nine tasks are accomplished. Student defined and provided twoexamples of actions for each C. This is the core of what must be achieved.
Character
Action 1
Action 2
Capacity
Action 1
Action 2
Capital
Action 1
Action 2
Progressing: Six of nine proficient level tasks are accomplished. Student defined andprovided one example for each C.
Character
Action
CapacityAction
Capital
Action
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CREDIT APPLICATION FOR A BUSINESS ACCOUNT
BUSINESS CONTACT INFORMATIONTitle:Company name:
Phone: Fax: E-mail:Registered company address:City: State: ZIP Code:Date business commenced:Sole proprietorship: Partnership: Corporation: Other:
BUSINESS AND CREDIT INFORMATIONPrimary business address:City: State: ZIP Code:How long at current address?Telephone: Fax: E-mail:Bank name:Bank address: Phone:City: State: ZIP Code:Type of account Account number SavingsCheckingOther
BUSINESS/TRADE REFERENCESCompany name:Address:City: State: ZIP Code:Phone: Fax: E-mail:Type of account:Company name:Address:
City: State: ZIP Code:Phone: Fax: E-mail:Type of account:Company name:Address:City: State: ZIP Code:Phone: Fax: E-mail:Type of account:
AGREEMENT
1. All invoices are to be paid 30 days from the date of the invoice.
2. Claims arising from invoices must be made within seven working days.
3. By submitting this application, you authorize Contoso, Ltd. to make inquiries into the
banking and business/trade references that you have supplied.SIGNATURES
Title:Date:
Title:Date:
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Name: ______________________ Class: _______ Date: _______
Credit Application Content ActivityDirections: Respond to the questions in the spaces provided.
What information on the individual and business credit applications is similar?
What information on the individual and business credit applications is different?
State in your own words the possible reasons for differences in individual and businesscredit applications.
________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________________________________
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Group doing the gallery walk ___________ Class__________ Date__________
Credit Contract ActivityDirections: Use the checklist to check specified content of a credit contract.
Checklist
__________ Credit Contract includes the listed items. This is the core of whatmust be achieved.
Finance charges-How much? _____
Cost of services-How much _____
Add-on feature to buy other items.
Statement indicating finance charges will be reduced if contract is paid in fullbefore ending date.
Statement indicating a copy of contract will be provided.
Comments about contract content:
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Group doing the gallery walk ___________ Class__________ Date__________
Credit Contract Activity
Directions: Use the checklist to check specified content of a credit contract.
Checklist
__________ Credit Contract includes the listed elements. This is the core of whatmust be achieved.
Finance charges-How much? _____
Cost of services-How much _____
Add-on feature to buy other items.
Statement indicating finance charges will be reduced if contract is paid in fullbefore ending date.
Statement indicating a copy of contract will be provided.
Comments about contract content:
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Name: ______________________ Class: _______ Date: _______
Statement of Account ActivityDirections: Use Figure 18-6 on page 467 in Intro to Business, 6e, Thomson South-Western textbook to answer questions in the spaces provided.
1. What is the previous balance?
2. Did the customer make a payment on this account the previous month? Why?
3. How many purchases were made this billing period? What is the total?
4. What is the minimum amount due on this statement of account?
Notes from discussion: ________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
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Name:___________
___________
Class:_______
Date:_______
CreditRegulationsandCreditAssistance
Directions:Summariz
etheregulationsorcreditas
sistanceoptionsprovided.
Activity
CreditApplicationR
egulations
Truth-in-LendingLaw
EqualCreditOpportu
nityAct
CreditUseRegulations
FairCreditBillingAct
FairCreditReporting
Act
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CreditRegulationsandCreditAssistanceActivitycontinued
ConsumerCreditReporting
ReformA
ct
FairDebtCollections
Act
CreditCardAccounta
bility,
Responsibility,andD
isclosure
Act
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CreditRegulationsandCreditAssistanceActivitycontinued
CreditAssistance
Debtrepaymentplan
CreditCounselor
Bankruptcy