7B, December 9, 2022

 Lesson calculating compound interest on Google Sheet: Pay attention in class

 

Online scientific calculator                https://www.desmos.com/scientific

 

The formula is Payment of loan= How much is borrowed x (1 + daily interest)^{how many days}

 

How much is borrowed: $1000, 8% interest, five years to pay it back

 

Daily interest = 0.08/365 = 0.000219178082

 

How many days in a year? 365           How many days in five years? 365 x 5 = 1825

 

1000 x ( 1 + 0.000219178082)¹⁸²⁵

 

1000 x (1.000219178082)¹⁸²⁵

 

= 1000 x 1.49176

 

= $1491.76 (you end up paying $491.76 more)

where

=A21*(1+E21)^C21

A21 = initial loan

E21 = daily interest

C21 = how many days in the term (5 years x 365)

 

I dare you to try buying a car:

Borrow $25000, interest rate 6%, 5 years (answer: $33745.41, you pay $8745.41 more)

 

Or buying a condo

Borrow $350,000, interest rate 2.5%, 25 years (answer: $653853.29, you pay $303853 more)

Exchange Rates

If you plan to take a vacation outside Canada, it is necessary to exchange Canadian dollar (C$) into the local currency after your arrival in the destination. 

 

Use this website and find the name of the local currency, an determine how much local currency you can get from C$100

Note: the currency rate fluctuates constantly

https://www.bankofcanada.ca/rates/exchange/currency-converter/

www.xe.com

 

            If the exchange number is more than 100, then C$ is worth more

If the exchange number is less than 100, then C$ is worth less

 

	Name of currency	How much for C$100	Is this worth more or less than C$
Canada	Dollar	C$100.00	Same
US	Dollar	US$73.37	USD is worth more
United Kingdom
France
Italy
Iran
Mexico
South Korea	Won
Japan
Thailand
India
Brazil
Turkey
	Name of currency	How much for C$100	Is this worth more or less than C$
Vietnam
South Africa
Switzerland
Taiwan
China
Hong Kong
Malaysia
Saudi Arabia	Riyals	275.08 Riyals	C$ worth more

 

How will exchange rates affect us when we don’t travel? (goods, freight)

 

 

 

 

 

 

 

 

Kwok’s note: 

-       We bought a lot of agriculture products from the US and Mexico

-       When C$ is cheap (lower exchange rate against USD and Peso), the agriculture products (fruits and vegetables, meat) will be more expensive for everyone in Canada because it costs more to buy them from USA and Mexico (between 2017 to 2020, steaks are very expensive in the last few years)

-       On the other hand, when C$ is expensive (buy less USD and Peso), these products will be cheaper for us to buy in Canada

 

 

Homework tonight

1)    When was the last time when C$100 = US $100 (at par)

2)    What are the five most important imports we buy from USA (in mil dollars). How much do we buy from the USA?