Academic/Career & Technical Related/Demonstration Lesson Plan
Instructor
Julie Lewis
Program/Class
BSN Math
Date
Blizzard Bag #2
Period 5,6,7,8
State Indicator/Competency: Calculate expected values and use them to solve problems.
Instructional Objective(s):
4.1 Credit Card Costs
1. Students will be able to identify important information about credit card terms and conditions with 80%
accuracy.
2. Students will be able to calculate the new balance on a credit card with 80% accuracy.
3. Students will be able to verify transactions on credit card statements with 80% accuracy.
4. Students will be able to calculate the cost of using a credit card with 80% accuracy.
4.2 Credit Card Finance Charges
1. Students will be able to calculate finance charges using a daily or monthly periodic rate with 80% accuracy.
2. Students will be able to calculate finance charges using previous balance method with 80% accuracy.
3. Students will be able to calculate finance charges using adjusted balance method with 80% accuracy.
4.3 Average Daily Balance Method
1. Students will be able to calculate finance charges using average daily balance method with 80% accuracy
4.4 Cash Advances
1. Students will be able to calculate total finance charges on cash advances with 80% accuracy.
2. Students will be able to calculate credit card balances the include cash advances with 80% accuracy.
4.5 Debt Management
1. Students will analyze a credit card account when minimum payments are made with 80% accuracy.
2. Students will be able to determine the percent of payments made towards paying off a credit card with 80%
accuracy.
3. Students will be able to calculate debt-to-income ratio with 80% accuracy.
Materials: textbook, calculator, binder, writing utensil
Method of Instruction: Independent Student Led
Activities:
1. Michelle Peterson’s credit card statement for the month of December showed a membership fee of $40, a late fee
of $15, a finance charge of $11.72, and an over-the-limit fee of $14. What was the total cost of the card to
Michelle in December? (40 + 15 + 11.72 + 14 = $80.72 )
2. Kurt borrowed $225 for 18 days on his credit card using a cash advance. His credit company charged a cash
advance fee of $12 and a daily periodic interest rate of 0.054%. What was the total finance charge on the cash
advance? (225 x .054% x 18 + 12 = $14.19)
3. Jade Hameed’s credit card statement for August showed these items: 8/ 1, previous balance, $ 108.15; 8/ 5,
purchase, $ 56.89; 8/ 10, purchase, $ 61.88; 8/ 14, purchase, $ 190.23; and 8/ 25, payment, $ 150. Jade’s card
company uses a 1.6% monthly periodic rate and the average daily balance method including new purchases.
What is Jade’s finance charge for August and the new balance?
Make a chart:
Post Date
8/1 (Bal.)
8/2-8/4
8/5
8/6-8/9
8/10
8/11-8/13
8/14
8/15-8/24
8/25
8/26-8/31
Transactions
0.00
0.00
+56.89
0.00
+61.88
0.00
+190.23
0.00
-150.00
0.00
Balance at End of Day
$108.15
$108.15
$165.04
$165.04
$226.92
$226.92
$417.15
$417.15
$267.15
$267.15
𝑆𝑢𝑚 𝑜𝑓 𝐷𝑎𝑖𝑙𝑦 𝐵𝑎𝑙𝑎𝑛𝑐𝑒𝑠
Average Daily Balance = 𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐷𝑎𝑦𝑠 𝑖𝑛 𝑡ℎ𝑒 𝐵𝑖𝑙𝑙𝑖𝑛𝑔 𝐶𝑦𝑐𝑙𝑒 =
8,624.18
=
31
$278.20
Periodic Rate = 1.6%
Periodic Finance Charge = $278.20 × 0.016 × 1 = $4.45
New Balance = $108.15 + $4.45 + $56.89 + $61.88 + $190.23 - $150 = $271.60
Assessment: Worksheet Blizzard Bag #2 (10pts)
# of Days
1
3
1
4
1
3
1
10
1
6
Sum of Daily Bal.
$108.15
$324.45
$165.04
$660.16
$226.92
$680.76
$417.15
$4,171.50
$267.15
$1,602.90
BSN Math: Lewis
Blizzard Bag 2: DUE in 2 WEEKS
Name_________________________