Key Terms Section 8.1 & 8.2  How can your savings give you the flexibility in your life choices? *Saving *Commercial Bank *Saving Bank *Dividend *Savings.

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Presentation transcript:

Key Terms Section 8.1 & 8.2  How can your savings give you the flexibility in your life choices? *Saving *Commercial Bank *Saving Bank *Dividend *Savings and Loan Association *Credit Union *Savings Account 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

Homework & Test Review Section 8.1 & 8.2 Test Review Page 265 #s 1-6

Key Terms  Describe strategies you can use to meet your saving goals. *Certificate of Deposit *Money Market Account *Bond *Savings Bond *Face Value *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

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