Friday, 9 April 2021

Financial Literacy Test, Total 50 plus bonus

  https://www.youtube.com/watch?v=L_xrDAtykMI

 

Part A Simple Interest Rate: Calculate how much interest will be earned each year for the following cases

 

a)      $4444.44 at 3.25% per year  (1)                   b) 9876.54 at 12.75% for four years (2)

 

 

 

 

 

 

 

Part B: Service Fee

If there is $3000 in your saving account and you the money with the Bank of Morneau and the service fee is as follows:

 

TAP:  First 3 free, then $0.75/each         e-transfer: $1.50 each time

ATM withdraw: $3.50 each time            Cheque: $1.75 per cheque

In branch withdrawal: $2.50 each time  If account has less than $2000 anytime, $25 charge

 

Kwok buys a Starbucks every morning, and he always TAP to pay for the drink. In February 2020, he wrote a cheque to pay for hydro, a cheque for insurance, a cheque for property tax, a cheque for his plumber and a cheque for heat.  He also bought something from eBay and makes four e-transfers some money to the sellers. By the end of the month, he needed to make twocash withdrawals from the ATM machine. Lastly, he had to go to the bank and take out some money.

 

By the end of February, he has $1999 left. Calculate how much service fee he had to pay the Bank of Morneau?  Show your calculations. (10)

Answer: $68.75

 

 

 

 

 

 

 

 

 

 

 

Part C: Banking hours

 

Locate the Royal Bank of Canada branch at 5700 Yonge StNorth York, ON, M2M 4K2

 

i)               How many hours does it open during the week (Sunday to Saturday) (1)

 

ii)              How many ATM machines in this branch (1)

 

iii)             The staff in this branch speak which two languages? (1)

 

Part D: Credit Cards, Debit Cards and Compound Interest

 

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

February 5, 2020

$876.54

23.99%

Question 15 formula

17

 

Question 16 formula

23.99%

Question 17 formula

18

 

 

23.99%

 

19

 

 

23.99%

 

20

 

 

23.99%

 

21

 

 

23.99%

 

 

Formula for Question 15 (1)

 

Formula for Question 16 (1)

 

Formula for Question 17 (1)

 

 

Use your Google Sheet and determine the total on February 20, 2020 (5)

Answer: $27350.06

 

 

 

Give three reasons why you should get a debit card when you are 15 (3)

 

 

Swiss cheese company Saputo will sell $100,000 (Canadian dollar) of cheese to Canada this spring. All of a sudden, the C$ drops 20% in a week. How will that affect Saputo’s profit with the lower Canadian dollar? (1)

a)     Saputo’s profit will stay the same with the lower C$

b)    Saputo’s profit will drop with the lower C$

c)     Saputo’s profit will go higher with the lower C$

 

 

 

 

 

Part E: Exchange Rates (10)

 

- 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

Sri Lanka

 

 

 

 

Romania

 

 

 

 

Kuwait 

 

 

 

 

Ethiopia

 

 

 

 

 

 

This is a Canadian Dollar and Swiss Franc Exchange rate chart for the last 12 months



 


 

 

When did the C$ hit low point against the Franc?  label “LOW” on the graph (1)

 

 

When did the C$ hit high point against the Franc?  Label “HIGH” on the graph (1)

 

 

Financial Goals: Post Secondary Education Saving (10)

 

You are going to UCLA (University of California, Los Angeles Campus)

https://admission.ucla.edu/tuition-aid/tuition-fees

 

- add the following numbers up, plus the $29754 non resident fee since you do not live in California

 

 

Domestic Students

Tuition

 

UCLA Resident Halls, Room and Meals

 

Books and Supplies

 

Transportation

 

Personal

 

Health Insurance

 

Non resident supplement tuition

 

Total, 0ne year, in USD$

 

Total, Four years, in USD$

 

 One year $65847

Four years $263388

 

- is it cheaper or more expensive to go to UCLA compare to York University in Toronto?

 

- will you go to the UCLA and study?

 

 

 


 

Bonus: Investing in your future (6)

Look at the chart below, and make THREE conclusions based on the data listed

 


 

 


 

 

 

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