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Cogito

Consumer Math · Chapter 7 · Lesson 3

Practice Worksheet

Identity Theft and Scams

Recognising an offer designed to fool you.

12 problems · about 20 minutes · TEKS M.M.7.C

NameDate

Figure — use these to answer the problems

Annualised rates side by side. The payday loan bar is not a mistake.
Mortgage6
Credit card24
Payday loan390
Mortgage rate percent6
Credit card rate percent24
Payday loan rate percent390
Figure 1

Warm Up

Straightforward practice. Get the method working first.

5 problems

  1. 15% per two weeks over 26 periods. Annualised rate in percent?

    Answer

  2. What should you do when an incoming caller asks for account details?

    • Hang up and call the institution on its published number.
    • Ask them to confirm who they are, then continue.

  3. A $20 fee to borrow $100. Period rate in percent?

    Answer

  4. 20% per two weeks, 26 periods. Annualised rate in percent?

    Answer

  5. 10% per month, 12 periods. Annualised rate in percent?

    Answer

Build It Up

The same ideas with more to keep track of.

3 problems

  1. Does a legitimate investment guarantee a high return? 1 yes, 0 no.

    Answer

  2. A caller demands payment in gift cards. Scam? 1 yes, 0 no.

    Answer

  3. How many two-week periods are in a year?

    Answer

Stretch Yourself

Mixed problems. Work out what kind of question it is before you start.

4 problems

  1. Which are warning signs of a scam?

    • Urgency and pressure to decide immediately
    • Payment demanded in gift cards
    • A guaranteed high return
    • A written contract you can take away and read
    • Tick every box that applies.

  2. 5% per week, 52 periods. Annualised rate in percent?

    Answer

  3. The Fee

    A $15 fee to borrow $100. What percentage is that for the period?

    Answer%

  4. The Annual Rate

    15% per two weeks. Annualised rate in percent, using 26 periods?

    Answer%