Content Standard 4: Using Credit

Grade 4 Benchmark

1. Interest is the price the borrower pays for using someone else's money.

Grade 8 Benchmarks

1. People who apply for loans are told what the interest rate on the loan will be. An interest rate is the price of using someone else's money expressed as an annual percentage of the loan principal.

2. The longer the repayment period on a loan and the higher the interest rate on th eloan, th elarger is the total amount of interest charged on a loan.

5. Various financial institutions and businesses make consumer loans and may charge different rates of interest.

Grade 12 Benchmark

1. consumers can compare the cost of credit using the annual percentage rate (APR), intial fees charged, and fees charged for late payment or missed payments.

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