Tuesday 6 April 2021

April 6, 2021

 Financial Literacy Pre-test

 

Service Fee

Case#10: If there is $5000 in your saving account and you the money with the Bank of Trump and the service fee is as follows:

 

TAP:  First 10 free, then $0.50/each       e-transfer: $0.75 each time

ATM withdraw: $3.00 each time            Cheque: $1.50 per cheque

In branch withdrawal: $2.50 each time  If account has less than $3000 anytime, $20 charge

 

Kwok buys a Starbucks every morning, and he always TAP to pay for the drink. In April, he writes a cheque to pay for hydro, a cheque for insurance, a cheque for property tax and a cheque for heat.  He also buys something from eBay and makes two e-transfers some money to the seller. Lastly, by the end of the month, he needs to make two cash withdrawals from the ATM machine and buys ice cream sandwiches for his students. 

 

By the end of April, he has $1888 left. Calculate how much service fee he has to pay the Bank of Trump?  Show your calculations.

Answer: $43.50 

 

Picking a bank

1) My parents bank with which bank?  Do you have a saving account?

 

2) Find out how many ATM machines for that bank in Canada and USA?

 

3) Locate TD bank, branch 3275 BAYVIEW AVE, WILLOWDALE, ON, M2K1G4

Find out how many hours they open during the week (Sunday to Saturday). Count the hours

Ans: 46 hours

  

Interest Rate

 

4) Currently, interest rate in Canada is very low/high (pick one)

 

5) Calculate how much interest will be earned every year for the following cases

a. $555.55 at 1% per year                               b. $1234.56 at 1.75% per year

Ans: $5.55 interest per year                            Ans: $21.60 interest per year 

 

c. $666.66 at 5.5% every two years               d. $777.77 at 18.75% every five years

Ans: $18.33 interest per year                             Ans: $29.17 interest per year 

  

Credit Cards and Debit Cards

 

Most credit cards charge 20% for outstanding balance (purchases that have not been paid back).  The interest will be accumulated daily.

 

Assuming the chart below is the Google Sheet, write down the formula needed to calculate the interest accumulated after a week.

 

E

F

G

H

15

Date

Charges 

Interest rate

Total

16

April 6, 2021

$355.79

19.99%

Question 21 formula

17

 

Question 22 formula

19.99%

Question 23 formula

18

 

 

19.99%

 

19

 

 

19.99%

 

20

 

 

19.99%

 

21

 

 

19.99%

 

 

Use your laptop Google Sheet and determine the total on April 13, 2021

Ans: $1528.81

 

 

- what is the grace period for credit card? Usually how long is the grace period?

grace period = 20 or 21 days

 

- give three reasons why you should get a debit card when you are 15

  

Exchange Rates

 

- use the exchange rate App in Google and determine the following

 

 

Name of currency

How much for C$100

Is this worth more or less than C$

Canada

 

Dollar

$100

Same

Uzbekistan

 

 

 about $834000

 less

Russia

 

 

 

 

Haiti

 

 

 

 

Macedonia

 

 

 about $4156

 less

 

 

Refer to the graph below

 


- what year did the C$ hit low point against USD?  Circle and label that on the graph

 

what year did the C$ hit high point against USD?  Circle and label that on the graph

 

 

Case#22:  Jose is a Mexican farmer who sells fresh vegetables to the Canadian supermarkets. This spring, he plans to sell 100,000 Pesos (Mexican currency) worth of goods to Loblaw.

 

All of a sudden, the C$ drops 20% in a week. How will that affect Jose’s vegetables in Loblaw?  Give a reason.

a)     Jose’s vegetables will be the same as before because of the lower C$

b)    Jose’s vegetables will be more expensive than before because of the lower C$

c)     Jose’s vegetables will be cheaper than before because of the lower C$

 

Reason:

 

Case#23:  Tasty Treats will sell $100,000 (Canadian dollar) of maple syrup to China this spring. All of a sudden, the C$ drops 20% in a week. How will that affect Tasty Treats’ profit with the lower Canadian dollar? 

a)     Tasty Treats’ profit will stay the same with the lower C$

b)    Tasty Treats’ profit will drop with the lower C$

c)     Tasty Treats’ profit will go higher with the lower C$

 

 

Case#24: As a country, did Canada import or export more goods to/from the USA?

 

List the top three types of goods that we buy from the USA

 

Financial Goals

Mr. Kwok inspires you to be a teacher when you grow up (REALLY!!!). The plan is to go to New Brunswick (Saint John campus) and study education there.

 

Find the following fees that you need to get you teaching licence. This is only a ten month program

https://www.unb.ca/moneymatters/tuition-fees.html

 

Domestic Students

International Students (add to domestic fee)

Tuition (Education)

 

 

Mandatory Fee

 

 

Student Union

 

 

Health Insurance

 

 

Dental Insurance

 

 

Education Practicum Fee

 

 

First Year Orientation Fee

 

 

Total (one year)

 

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