HW
- calculate the interest earned in the eight questions
- find the information for Cartier, de Champlain, Vancouver, and Hudson
- do some research on the ten wonders to prepare you from "Writing on Demand"
Part B: Interest Rate
When money is deposited into a saving account, the banks basically borrow money from you to invest. As a result, the bank needs to pay you interest for your deposits. Let’s take a look at the interest rate paid to different accounts from TD bank: (as of March 12, 2021)
Calculate how much interest you will earn if $5000 is in the account for a year.
Is interest rate high or low? If you need to earn the interest to buy a $300 phone, how many years do you need to keep the money in that account? Show your calculations.
Summary: Interest rate is very low, and we earn close to nothing from our saving accounts. Therefore, we need to find other ways to grow our money.
Kwok’s note: interest rate in saving accounts will stay low for a very long time (decades). You must learn to manage money and find alternatives to grow money (instead of working from a job).
Activity 2: Calculate how much interest will be earned every year for the following cases
a. $1000 at 1% per year b. $1234 at 1% per year
c. $1000 at 5.5% per year d. $3210 at 5.75% per year
e. $1000 at 7.5% every two year f. $1660 at 18.88% for three years
g. $2500 at 18.88% for five years h. $3000 at 19.75% for four years
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