Financial Literacy Ty Ty
- chesstifton
- Jan 16
- 2 min read
1/16/26 Weekend Homework
Make sure you have defined all the vocabulary words on page 1 of Unit 4 (remember to look in the back of the unit for vocabulary and definitions)
Complete all reading and answer all questions through 1.7 on page 11.
With the formula on page 9 to calculate interest answer the following problems. Remember the formula is A = P(1 + r)n hint - remember the n will function as an exponent to multiply your number in the parentheses.
1. Deposit a principal amount of $5000 with an interest rate of 3.75% for 3yrs
Deposit $12,000 for 5 years at an interest rate of 6%
Deposit $500 for 10 years at an interest rate of 4%
Now using the above link to the compound interest calculator on the investor.gov website - answer these questions.
1. How much money would Daniel have in his account to save for his crane after five years if he started his account with $20,000 and continued to deposit $1000 each month and earned an interest rate of 4.25%? The interest is compounded monthly.
How much money would Jake have saved for his new truck after 3 years if he deposited $5000 to start with then added $300 a month to the account at an interest rate of 3.5% compounded annually. Then take the same amounts and compound the interest monthly. Which account would be best for him to choose - monthly or annually.
Now it is your turn to set a goal for something you want to save for. Look on the website of the bank your family uses and see what the current rate is that your bank is offering for a savings account. Do they offer a High-yield savings account and if so what is the interest rate for that account? How is the interest compounded? (annually, monthly or daily) Using all this information set an amount you want to deposit and plug it into the calculator and see how long you will have to save to reach your goal to purchase your item. Write it all down and we will discuss on Tuesday.