Analyze the major sources of consumer credit
Determine the cost of credit by calculating
interest using various interest formulas
Develop a plan to ma
PERSONAL FINANCE (AFP313)
1. Given her current situation, list various personal financial decisions that Shelby may be
considering at this point in her life.
Shelby should begin by establishin
Housing Decisions (p. 315)
1. Lets assume the Lawrences will qualify for a 6%, 30-year loan and will make a down
payment of 10%. They are currently paying $300 on a used car auto loan for Shelby and will
pay $220 per month f
1. Dave borrowed $500 for one year and paid $50 in interest. The bank charged him a $5 service
charge. What is the finance charge on this loan?
$50 + 5 = $55
2. In problem 1, Dave borrowed $500 on January 1, 2006, and paid it all back
Analyze the process for making personal
Develop personal financial goals
Assess personal and economic factors that
2. A payday loan company charges 4 percent interest for a two-week period. What would be the
annual interest rate from that company?
Solution: 52 weeks / 2-week period = 26 periods X .04 = 1.04 (annual period of 104 percent)
5. What w
2. Based on the following data, would you recommend buying or renting?
Annual rent, $7,380
Security deposit, $650
Annual mortgage payments, $9,800 ($9,575 is
Property taxes, $1,780
1. Define Life insurance and describe its purpose and
2. Determine your life insurance needs
3. Distinguish between the two types of life insurance
companies and analyze various types of
Explain why the costs of health insurance and
health care have been increasing
Define health insurance and disability income
insurance and explain their importan
Develop a risk management plan using insurance
Discuss the importance of property and liability
Explain insurance coverages and policy types
available to home
Identify strategies for effective consumer buying.
Implement a process for making consumer purchases.
Identify steps to take to resolve consumer problems.
Define consumer credit and analyze its
advantages and disadvantages
Differentiate among various types of credit
Assess your credit capacity and build your
1. Recognize relationships among financial
documents and money management
2. Design a system for maintaining personal