Instructor: William R. Rencher

This class will focus on how interest is ofttimes a major wrecking ball to family budgets. To lay groundwork for this assertion, the class will explore fixed, variable, and semi-variable expenses and their interaction with one another. A “real” family budget will be defined!

A portion of class will trace the need for “The Truth in Lending Act.” Before the Act, were buyers being misled or just not paying attention? One major requirement of the Act was disclosure of the annual percentage rate of interest? Students will learn how installment loans with interest may be confusing when computing the annual percentage rate of interest.

The third major topic is the time value of money and how interest is compounded. Compounding interest may be both a positive or negative influence on family financing or if properly addressed, it could become a positive-positive. “Seventy-two years old” is the magic age for understanding the time value of money. “Seventy-two” will be explained.