Key Terms Section 8.1 & 8.2 How can your savings give you the flexibility in your life choices? *Savings Account *Commercial Bank *Credit Union Question to think about!
Saving Strategies Pay Yourself First Save by the Numbers Reward Yourself Consider Your Values Enroll in Automatic Savings Section 8.1 & 8.2
Checkbook Packet March $ April $ May $ June $ Work on April, May and June
Key Terms Describe strategies you can use to meet your saving goals. *Certificate of Deposit *Money Market Account *Simple Interest *Compound Interest Question to think about! Section 8.3 & 8.4
Simple Interest Suppose you have $750 to deposit into a savings account at the given simple interest rates per year. In each case, how much would you have in your account? Section 8.3 & 8.4 DepositRateAmount of Simple Interest New Principal After One Year $7503%$750 x 0.03 = $22.50$750 + $22.50 = $ $7504 ½ %$750 x = $33.75$750 + $33.75 = $ $7506 ¾ %$750 x = $50.63$750 + $50.63 = $800.63
Compound Interest Compound Annually Year One $100.00Principal 6%Interest rate $ x 0.06 = $6.00 Interest 1 st year $106.00Principal, end of 1 st year Compound Annually Year Two $106.00Principal 6%Interest Rate $ x 0.06 = $6.36 Interest 2 nd Year $112.36Principal, end of 2 nd year Section 8.3 & 8.4
Class Work Section 8.3 & 8.4 Simple & Compound Interest Activity Worksheet