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Credit cards and maths

March 20, 2012
Credit Cards

Credit Cards (Photo credit: 401K)

Considering the banking crisis we have had and the emphasis in government policy on enterprise skills and learning(including money management) it is a good reminder of why we must teach our learners how to work out the maths with credit cards, loans and mortgages.Murray Bourne from squareCircleZ has taken this matter to heart and has written a goodlesson about math that goes into taking a loan. He’s also analyzed several misleading credit card ads and figured out the TRUE interest rate (which you find out after reading the fine print).

First go here:

Credit Cards – a simplified discussion on how banks make money on credit cards. This is a must read for all people (young or old) who even consider taking a credit.

Then check these posts and warn your youngsters:

Misleading Credit Card Advertising. This ad advertises “a attractive interest rate of 5% p.a.” (p.a. means per annum or yearly interest rate), but has a “small” administration fee of 6%.

And then check another misleading credit card ad which advertises a 0% p.a.*. Notice it has an asterisk… and the info in the asterisk can lead up to 24% annual interest!

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