MATH

W31.9.docx

Lesson 1.9

#1 Points possible: 10. Total attempts: 5

According to the Federal Reserve System the total credit card debt carried by Americans as of March 2015 was 848.1 billion dollars.

a) Write this number out as dollars.

b) Write this number in scientific notation.

You will use the following information from a credit card disclosure in the next few questions.

Annual Percentage Rate (APR) for Purchases

0.00% introductory APR for 6 months from the date of account opening.

After that, your APR will be 10.99% to 23.99% based on your creditworthiness. This APR will vary with the market based on the Prime Rate.

#2 Points possible: 5. Total attempts: 5

APR stands for Annual Percentage Rate. It is the total interest rate for the entire year. However, we normally make a credit card payment each month. The amount of interest paid each month is called the Periodic Rate. Find the monthly Periodic Rate for an APR of 10.99%, rounded to two decimal places.

Creditworthiness is measured by a “credit score,” with a high credit score indicating good credit. In the following questions, you will explore how your credit score can affect how much you have to pay in order to borrow money. Juanita and Brian both have a credit card with the terms in the disclosure form given above. They have both had their credit cards for more than 6 months.

#3 Points possible: 5. Total attempts: 5

Juanita has good credit and gets the lowest interest rate possible for this card. She is not able to pay off her balance each month, so she pays interest. Estimate how much interest Juanita would pay in the month of January if her unpaid balance is $5000.

#4 Points possible: 5. Total attempts: 5

If Juanita maintains an average balance of $5000 every month for a year, estimate how much interest she will pay in a year.

#5 Points possible: 5. Total attempts: 5

Brian has a very low credit score and has to pay the highest interest rate. He is not able to pay off his balance each month, so he pays interest. Calculate how much interest he would pay in the month of January if his balance is $5000, to the nearest cent.

#6 Points possible: 5. Total attempts: 5

If Brian maintains an average balance of $5000 every month for a year, calculate how much interest he will pay in a year.

You will use the following information from the disclosure for the next question. A cash advance is when you use your credit card to get cash instead of using it to make a purchase.

Annual Percentage Rate (APR) for Purchases	After that, your APR will be 10.99% to 23.99% based on your creditworthiness. This APR will vary with the market based on the Prime Rate.
APR for Cash Advances	28.99%. This APR will vary with the market based on the Prime Rate.

#7 Points possible: 10. Total attempts: 5

Consider the following statements. Determine how to fill in the blank to create a reasonable statement.

a. Jeff pays the highest interest rate for purchases. Over a year, for a cash advance he would pay $ more interest for each dollar he charges to his card, compared to using it for a purchase.

b. Lois pays the lowest interest rate for purchases. If she purchased a $400 TV using a cash advance, she would pay about interest as she would if she used the card as a regular purchase.

Spreadsheets

Brian used a spreadsheet to record his credit card charges for a month. In a spreadsheet, you can refer to a "cell" (one of the boxes that hold numbers or words) using it's location. For example, $56.08 is in column B and row 2, so we say it is in cell B2.

Brian entered the following formula in cell B7 to calculate his interest for these charges for one month.

= (0.2399/12) * (B2 + B3 + B4 + B5)

#8 Points possible: 5. Total attempts: 5

Which of the following statements best explains what the expression means in terms of the context?

· Brian found the periodic rate by dividing his APR of 0.2399 by 12 months. He then added the individual charges to get the total amount charged to the credit card. He multiplied the periodic rate by the total charges to find the interest charge for the month.

· Brian found the interest charge for the month by dividing 0.2399 by 12 and multiplying it by the sum of Column B.

· Brian added his individual charges. Then he divided 0.2399 by 12. Then he multiplied the two numbers.

#9 Points possible: 6. Total attempts: 5

Which of the following are other ways that Brian could have done the calculation (there may be more than one correct answer)

· = (B2 + B3 + B4 + B5)*0.2399/12

· = (0.2399/12)*B2 + B3 + B4 + B5

· = (1/12)*0.2399*(B2 + B3 + B4 + B5)

· = B2 + B3 + B4 + B5 * 0.2399 / 12

· = (0.2399*(B2 + B3 + B4 + B5))/12

· = B2*0.2399/12 + B3*0.2399/12 + B4*0.2399/12 + B5*0.2399/12

HW 1.9

#1 Points possible: 5. Total attempts: 5

Which of the following was one of the main mathematical ideas of the lesson?

· A percentage is always a number greater than 1.

· The number $1.177 trillion can also be written as $1,177 billion.

· Understanding numbers includes knowing how numbers compare in size, knowing what numbers represent in situations, and using estimation to answer questions about numbers.

· Credit cards are expensive to use if you do not pay off your balance each month. You pay more interest for cash advances than for the balance on purchases. Credit card debt is a problem in the United States.

#2 Points possible: 15. Total attempts: 5

Refer back to the spreadsheet from the lesson.

a. A student used a different expression to calculate Brian's monthly interest. Choose the sentence that best explains what the expression means in terms of the context and the order in which the calculations were done. Spreadsheets use an asterisk (*) to indicate multiplication: 3 * 4 = 3 times 4. 0.2399*B2+0.2399*B3+0.2399*B4+0.2399*B5120.2399*B2+0.2399*B3+0.2399*B4+0.2399*B512

· Distribute 0.2399 to the sum of the charges and then divide by 12.

· Find the annual interest for each individual charge and then add to find the total annual interest. Divide by 12 months to find the interest for 1 month.

· Multiply each entry in the B column by 0.2399. Add the results and divide by 12 to find the final answer.

· Divide the annual interest rate by 12 to find the monthly interest rate and then multiply by each of the charges to find the monthly interest for each charge. Add the monthly interest for each charge to find the total monthly interest.

b. Open a spreadsheet program. Enter the information shown in the spreadsheet image above. In which cell(s) should the formula for calculating the monthly interest be entered?

· B7

· A6

· C7

· B6

· C2 through C5

c. In the lesson, you were given the formula = (0.2399/12) * (B2 + B3 + B4 + B5). Enter this formula into the correct cell. To do this, click on the cell. First type =. (A formula in a spreadsheet always starts with an = sign.) Type the formula. Notice as you type that your formula appears in the cell and also in the formula bar above the spreadsheet cells. Press enter. Record the result (what appears in the cell) when you are done.

#3 Points possible: 10. Total attempts: 5

An economist once predicted that the credit card debt would be $1.177 trillion.

a. Write the projected debt in standard form (written as a number like 374,000).

b. What is the projected debt in scientific notation?

· 1,177×1091,177×109

· 11.77×102211.77×1022

· 11.77×101111.77×1011

· 1.177×10111.177×1011

· 1.177×10121.177×1012

#4 Points possible: 5. Total attempts: 5

Raymond has a credit card with a 21.99% APR. His balance this month is $3,000. Calculate how much interest he will pay this month. Round to the nearest cent.

#5 Points possible: 26. Total attempts: 5

Read a sample credit card pricing and fees disclosure by clicking on this link . Use the information to answer the following questions about that card.

a. Which of the following can trigger a penalty annual percentage rate (APR)? There may be more than one correct answer.

· You are late in paying your bill.

· You go over your credit limit.

· You do not use the credit card for six consecutive months.

· You pay your bill too early.

b. If you have a balance of $500 and make a late payment, in addition to paying a higher penalty rate, you will also be charged a penalty fee of:

· There is no penalty fee

· $15

· $25

· $35

c. How can you avoid paying interest on purchases?

· Pay the entire balance by the due date.

· Pay the minimum interest charge.

· Always make the minimum payment on time.

· Avoid late fees.

d. Use the purchase APR shown in the disclosure on the website. How much more in interest would you pay in one year for a balance of $5,000 if you have a very low credit score compared to having a very high credit score? $

#6 Points possible: 5. Total attempts: 5

Many people say you shouldn't spend more than 30% of your income on housing (rent or mortgage). If Kendra earns $24,000 a year, how much does this rule suggest is the most she should spend on housing each month?

$ per month

#7 Points possible: 5. Total attempts: 5

A laptop computer that you want to purchase was originally priced at $1,175. You will receive a 20% student discount, and the sales tax rate is 8%. How much money will you pay for the laptop? Round to the nearest cent if needed. $

#8 Points possible: 10. Total attempts: 5

A college student is talking to her family about a February 1, 2010, news story she read at msnbc.com 1 . It states:

Florida college students could face yearly 15 percent tuition increases for years, and University of Illinois students will pay at least 9 percent more. The University of Washington will charge 14 percent more at its flagship campus. And in California, tuition increases of more than 30 percent have sparked protests reminiscent of the 1960s.

The student attends the University of California and paid about $7,800 in tuition in 2009. Which of the following statements is a good quantitative description of how her tuition will change based on the news story? There may be more than one correct answer.

· Her tuition is going up a lot!

· Her tuition is going to increase by almost a third!

· Her tuition will be around $9,000.

· Her tuition will be around $8,500.

· Her tuition will go up by more than $2,000.

Big budget movies are tracked by investors and consumers. The following table gives data on the six movies with the largest budgets that had been released as of June 20, 2010. 2 The data includes an estimate of the U.S. gross earnings and worldwide gross earnings of movies. Gross earnings is the amount of money that a movie takes in.

Release Date	Movie	Distributor	Budget	U.S. Gross Earnings	Gross Earnings Outside U.S.
5/25/2007	Pirates of the Caribbean: At World’s End	Buena Vista	$300,000,000	$309,420,425	$651,576,067
11/24/2010	Tangled	Buena Vista	$260,000,000	$200,821,936	$385,760,000
5/4/2007	Spider-Man 3	Sony	$258,000,000	$336,530,303	$554,345,000
5/20/2011	Pirates of the Caribbean: On Stranger Tides	Buena Vista	$250,000,000	$220,746,502	$731,900,000
7/15/2009	Harry Potter and the Half-Blood Prince	Warner Bros.	$250,000,000	$301,959,197	$632,000,000
12/18/2009	Avatar	20th Century Fox	$237,000,000	$760,507,625	$2,023,411,357

#9 Points possible: 5. Total attempts: 5

In the table, look up the budget for Avatar. Write this number in words

#10 Points possible: 8. Total attempts: 5

Net earnings is the total amount the movie makes after expenses (the budget) are taken out. Which of the following calculations shows a correct method to estimate the net earnings for Pirates of the Caribbean: At World’s End? There may be more than one correct answer.

· ($310,000,000 + $650,000,000) - $300,000,000 = $660,000,000

· $650,000,000 - ($310,000,000 + $300,000,000) = $660,000,000

· The budget and the U.S. gross earnings are about the same and cancel each other out. The net earnings would be about the same as the gross earnings outside the United States, or about $650 million dollars.

· The gross earnings are about $600 million plus $300 million, or $900 million. The expenses are about $300 million. So, the net earnings are about $600 million dollars.

#11 Points possible: 5. Total attempts: 5

Refer to the data for Harry Potter and the Half-Blood Prince. (Click the "Show Question Information" link above to re-show the data).

Estimate the net earnings.

$ million

#12 Points possible: 8. Total attempts: 5

The return on investment is the percentage that the net earnings are of the budget. Which of the following statements best estimates the return on investment for Pirates of the Caribbean: At World’s End? There may be more than one correct answer.

· The net earnings for Pirates of the Caribbean: At World’s End were more than double the investment.

· The return on investment for Pirates of the Caribbean: At World’s End was more than 300%.

· The return on investment for Pirates of the Caribbean: At World’s End was more than 200%.

· The net earnings for Pirates of the Caribbean: At World’s End were more than triple the investment.

#13 Points possible: 5. Total attempts: 5

Which of these expressions show ways to calculate 25% of 2,310? There may be more than one correct answer.

· 14×2,31014×2,310

· 0.25÷2,3100.25÷2,310

· 2,310÷252,310÷25

· 14÷2,31014÷2,310

· 2,310×42,310×4

· 0.25×2,3100.25×2,310

· 2,310÷0.252,310÷0.25

· 2,310×0.252,310×0.25

· 2,310÷42,310÷4

· 2,310÷252,310÷25

#14 Points possible: 5. Total attempts: 5

Which expression is the same as 20% of a billion? There may be more than one correct answer.

· 20,000,00020,000,000

· 109÷5109÷5

· 20÷100×1,000,000,00020÷100×1,000,000,000

· 0.2×1,000,0000.2×1,000,000

· 0.2×1,000,000,0000.2×1,000,000,000

· 109÷20109÷20

· One-fifth of 1,000 million

· 106÷5106÷5

#15 Points possible: 5. Total attempts: 5

Self-Regulated Learning: Reflect

a. How confident are you that you correctly answered the problems you were assigned in this Homework? Rate your confidence on a scale from 1–5 (1 = not confident; 5 = very confident).

b. Which problems from this lesson do you feel you understood well? Which ones might you find it beneficial to talk to your teacher or someone else about?

c. When planning to do this homework assignment, did you accurately predict how long the assignment was going to take?

d. Name two strategies you used when solving this assignment.