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Learning Objectives
LO 1 Calculate credit card interest using the average
daily balance method.LO 2 Determine the commission cost to the merchant
of a credit card purchase.LO 3 Compare different credit card offers for their
annual fees and interest rates.LO 4 Determine the equity and maximum loan amount
for a mortgage loan.LO 5 Calculate the total monthly payment (PITI) on
a mortgage loan, including escrow and private
mortgage insurance.LO 6 Apply standard income qualifi cation ratios for
mortgage loans.LO 7 Calculate the total cash needed to close on a
mortgage loan.LO 8 Determine the payments on an installment
payment plan based on carrying charges or
simple interest rates.LO 9 Calculate the annual percentage rate (APR) for
an installment plan by using amortization and/or
approximation formulas.LO 10 Calculate the monthly payment on an auto or other
lease, given the residual value and interest rate.Chapter Outline
10.1 Credit Cards10.2 Mortgages10.3 Installment Plans10.4 LeasingConsumer
Mathematics
“I want it now!”
—Veruca SaltCHAPTER
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