7B Compound Interest
$250, 4.75% compound interest daily.
- determine the money owned to the Bank of Kwok everyday, from Monday to Sunday
- answer for Monday = $261.87, Wednesday = $287.34, Friday = $315.29, Sunday = $345.95
https://www.biography.com/explorer/ferdinand-magellan
- 8 points about Magellan (country, voyage, how he died, what did he accomplish?)
- Magellan quiz tomorrow
European Explorer Map
Part D: Now, the department store cards>
https://www.capitalone.ca/credit-cards/compare/?filter=all
https://hudsonsbaycredit.capitalone.ca/credit.html
https://www.pcfinancial.ca/en/credit-cards/
Dept Store | Interest on purchases | Interest on cash advance | Annual Fee | |
Costco (Capital One) | ||||
Hudson Bay | ||||
Canadian Tire | ||||
PC Financial (Loblaw) |
So, let’s calculate how much more you will have to pay if there is an outstanding balance of $750 on your department store card.
Interest rate for outstanding balance is 26.99%.
Step 1: convert 26.99% into decimal = 26.99/100 = 0.2699
Step 2: use outstanding amount multiply by interest rate 750 x 0.2699 = $202.42
Step 3: so your $750 purchase turns out to be $750 + $202.42 = $952.42 (really expensive)
Step 4: if you still cannot pay that off by the end of the year, more interest will be added to the $952.42
Your turn to calculate the interest charges
a. iPad, $666.00 @ 30% b. Air fare, $1500 @ 19.5%
c. Smart phone, $450.50 @ 9.99% d. Chromebook $325 @ 18.88%
e. A car, $32000 @ 7.99% f. BBQ, $750 @ 29.99%
g. A bicycle @ 16.75% h. Furniture $999 @ 25.99%
Credit cards and Debit cards
Credit Cards | Debit Cards | |
Offered by | Most banks | Most banks |
Examples | AMEX, Visa, MasterCard | Prepared or Debit cards |
What is it for? | To buy most merchandise in store and online | To buy most merchandise in store and some online |
How does it work? | Basically, when you buy an item, the bank lends you money for a short period, usually 3 weeks. You must pay it back before the end of the grace period. Otherwise, the bank will charge an insane amount of interest (around 20% till everything is paid off completely) | You need to put money in a debit first before buying anything. Say, if $200 is deposited in the debit card, and if you spend $15 at lunch time, there will only be $185 left in the debit card. Once there is no money left, you must deposit more money in the debit card before buying more things |
Advantages | - You can shop online and buy a lot of items. - Great when you travel to another country. Don’t have to bring a lot of cash - Some rewards such as travel points, cash back or shopping credits for supermarkets or drug stores | - Will never over-spend on items you cannot afford - Ideal for young people or those who cannot control their spending habits - No annual fee |
Disadvantages | - Spending can get out of control (buy stuff you cannot afford) - very high interest rate and takes forever to pay them off - annual fee | - some stores do not accept Debit cards - most do not accept them out of Canada. Debit cards do not work well when you travel |
Kwok’s advice | - Get one when you are 19 and control your spending habits (good way to learn financial responsibility) | - Get one when you are 15 or 16 and learn to spend money responsibly |
Music test tomorrow. Study
ReadWorks.org passage about mutualism. Due tomorrow
Find information about the ten wonders. You will need that to do Writing on Demand on Friday
Part C: Interest rate on loans, credit cards, payday loans as well as price of goods/services
How do banks make money? Even they pay very little interest in your saving account, the charges on loans and credit cards are very high. Let’s take a look at the rate for the following banks
https://www.td.com/ca/en/personal-banking/products/credit-cards/
https://www.rbcroyalbank.com/credit-cards/index.html
https://www.cibc.com/en/personal-banking/credit-cards.html
https://www.bmo.com/main/personal/credit-cards/low-interest-rate/
https://www.scotiabank.com/ca/en/personal/credit-cards/compare-cards.html
https://www.nbc.ca/personal/mastercard-credit-cards.html
Banks | Interest on purchases | Interest on cash advance | Annual Fee | |
TD | ||||
Royal Bank | ||||
BMO | ||||
Scotia Bank | ||||
CIBC | ||||
National Bank |
Kwok’s note: After you purchase something, there is a grace period that you don’t have to pay interest charges. That grace period is usually 3 weeks or 21 days, and you must pay off your entire monthly bill by that time. Otherwise, interest will be charged on all the purchases.
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
Ten man-made wonders of the world
https://www.touropia.com/ten-wonders-of-the-world/
Student Saving Accounts
If you are a student, from age 12 to University level (around age 23), you are entitled to use a student account. Take a look at this link
https://www.ratehub.ca/blog/best-student-bank-account-canada/
Activity 2: Use the information from this page complete the following table
Bank or institution | Fees | Sign up Promotion | Monthly Transactions | Interac e-transfer | Other information |
Which account will you choose? Give three reasons for your choice.
1)
2)
3)
Something to consider:
Radin's flipped pict
Look up John Cabot (find his route, the year he started, and what he discovered going west)
- find a few images for fish, mammals, reptiles, amphibians and birds (3 images for each category)
7B
- Sign motion geometry test and Underground to Canada sentences
Financial literacy assignment, Case 1, 2, 3, and 4. Calculate cost to maintain those saving accounts
Financial Literacy Link (Bank amount and service fee)
https://docs.google.com/document/d/14YL2m-FG7P1SzjDSeoFi3WgVBFaTAMW9x6EXACWiM-0/edit?usp=sharing
Tessellation shapes
https://drive.google.com/file/d/1jKShihvUtpk523Wa9kZzpXRkHFt98vre/view?usp=sharing
To prepare you for the nest writing on demand, please find adjectives that describe
- sunset (https://www.descriptionari.com/quotes/sunset/)
- sky (https://www.descriptionari.com/quotes/sky/)
- spectacular view
https://grammar.yourdictionary.com/word-lists/30-nature-words-to-describe-the-beauty-of-earth.html
- historial sites/ places
https://grammar.yourdictionary.com/grammar/word-lists/list-of-words-to-describe-places.html
- you need to find at least 5 adjectives/phrases for each item
e.g. The Colosseum in Rome is a massive, gigantic amphitheater which sits thousands to enjoy the gladiator games hundreds of years ago. This crumbling landmark now sits empty, with barren rocks and marble only with foreign tourists admiring the past glory of the Roman Empire in the demising sunset from the west.