S56 Apps Maths Banking.notebook September 22, 2017

Starter 28.8.17

Q1. A car is driving at 60 miles per hour. How far will it travel in 4 hours?

Q2. If the time in Hong Kong is 16:58 when the time here is 09:58. What time will it be here when it is 21:15 in Hong Kong?

Q3. If the exchange rate is £1 = $1.31, how many dollars would you get for £450?

Today we will be learning about loans.

Loans

A loan is a form of borrowing money.

Interest is the cost of borrowing money.

Types of loans:

Student Loans

Short term loans

Car loans

Payday loans

Personal loans

Small business loans

Consolidated loans

Mortgage

Loans

Some types of borrowing require . Collateral is a property or asset that can be seized if the borrower stops making repayments.

E.g. the collateral for a mortgage is the house

A is an evaluation of your ability to pay money back. The better your credit rating is, the more likely you are able to borrow.

Credit Rating

Your credit rating can be affected by the following:

You can improve your credit rating by:

Loans

The cost of borrowing and fees paid on a loan is generally stated as the APR (Annual Percentage Rate).

We use the APR to compare loans.

The APR tends to be higher on short term loans and on loans where the borrower has a poor credit rating.

S56 Apps Maths Banking.notebook September 22, 2017

Daily Practice 29.8.2017

Q1. Jessica got her car serviced. It was £180 + 20% VAT, how much was it in total?

Q2. Which is cheaper?

2 x loaves of bread for £1.86

or 2 loaves of bread that are 96p each with 10% off

Q3. If it is -30C outside and the temperature drops a further 6 degrees. What temperature is it now?

Today we will be continuing to work on loans and borrowing.

Loans

Examples: (Assume simple interest)

1. Melony buys a sofa set on credit. The sofa will cost £748 at a rate of 4.3% per annum over 3 years. How much will the monthly repayments be?

2. Kevin is looking at 2 different options for a loan of £5000

Option 1 Option 2

Calculate the monthly repayments for each

12 months

at 4.8% p.a.

6 months

at 3.9% p.a.

Starter 30.8.2017Q1. Find 25% of 220

Q2. Harry works 29 hours at £6.80 per hour and 4 hours overtime at time and a half, how much does he earn for the week?

Q3. Calculate the time it takes a van to travel 400km at a speed of 120km per hour

Q4. -15 + 22 + 34

Q5. Calculate the volume of this cuboid 1.26m

85cm

76cm

S56 Apps Maths Banking.notebook September 22, 2017

Starter 31.8.2017

Q1. Round 71.223 to 2 significant figures

Q2. Write 16 out of 20 as a percentage

Q3. Calculate the circumference of the circle shown

Q4. 24.85 x 300 (non-calc.)

Q5. Find 17% of 87000

12.5cm

Today we will be learning about credit and store cards.

Credit Agreements

This is a way to pay for goods and services over a period of time instead of all at once. They are normally offered on household goods such as sofas and kitchens or on cars.

Sometimes companies will have interest free offers for a period of time.

Credit Cards and Store Cards

Credit Cards: These are issued by banks or finance companies and can be used to buy goods and services that you will pay for later.

You will have a special credit card account with the issuer and you will have to make at least the minimum payment every month.

If you pay off the card in full each month, you don't pay any interest. If you only pay in part, interest will be added onto the balance.

For example:

Ben spends £100 using his credit card. If he pays off the £100 the following month. His balance is £0.

If he only pays off the minimum payment of £5. Then he owes £95 + APR.

https://money.asda.com/credit-cards/cashback-credit-card/cashback-charges-and-

interest/

Store Cards: These are a type of credit card but are issued though a shop or branch of shops. They often include special discounts or offers.

You can only use these cards with that particular shop. E.g.

Credit Cards and Store Cards

S56 Apps Maths Banking.notebook September 22, 2017

Credit Cards and Store Cards

Example:

Sophie bought a dress costing £55.80 on her credit card. How much does she owe on her card after a year if APR is 28.9%? (Assuming she has made no payments)

Starter 1.9.2017Q1. How long is it between 4:05pm and 11:02pm?

Q2. If 2 bottles of juice cost £3.20, how much will 3 cost?

Q3. 4.56 x 700

Q4. (i) Kelsey earns £17 per hour. How much will she earn per month in a 4 week month if she works 39 hours per week?

(ii) Kelsey earns £31824 p.a. She pays tax on her earnings at the basic rate of 20% after her yearly tax free allowance of £11 100 is deducted. How much does she earn per month after tax?

Today we will be practising questions on credit and

store cards.

Starter 4.9.2017

Q1. Josh earns £1240 per month. He gets a pay rise of 1.1%. How much does

he earn per month after his payrise?

Q2. Maggie takes out a loan of £5000. She pays APR of 4.2% per annum. How

much will she owe after 6 months?

Q3. Which is cheaper if you need 600mins of calls and 400 texts?

(a) 500 mins of calls free (calls cost 5p per min) and 4.9p per text

(b) 700mins of calls free and 200 free texts, texts cost 11p per text

Today we will be learning about saving money.

Daily Homework Question starts today!

Saving Money

The bank pays you interest on your savings. It is measured as a percentage AER (Annual Equivalent Rate).

Basic rate tax payers can earn up to £1000 in interest tax free. After that you are taxed 20% on interest you have earned.

For example:

Carys has £40 000 in the bank at a rate of 2.9% interest. She pays tax at the basic rate. How much will she earn in interest?

S56 Apps Maths Banking.notebook September 22, 2017

Saving Money

The longer you are willing to save your money for, the more interest you will earn.

Regular saving accounts with limited or no withdrawls offer better rates of interest than instant access savings accounts.

If you withdraw money from an account with limited or no access for a fixed period, you may incur penalty charges.

Daily Practice 5.9.2017

Non-Calculator Numeracy Questions

Q1. -15 + 8 + 3

Q2. Find 10% of 680

Q3. Find 75% of 800

Q4. Find 4% of 600

Q5. Find of 350

Q6. How long is it between 13:40 and 22:00?

Q7. Share £300 in the ratio 2:3

Today we will be continuing to learn about savings.

Saving Money - Compound Interest

If you save money year on year, the interest gets compounded.

This means if you save £100 and earn £5 in interest, the following year you will earn interest on £105 and so on. Sometimes the interest is compounded monthly.

Examples:

1. Henry has £800 saved in a savings account. He earns 2.8% interest p.a. How much will be in the account after 3 years if the interest is compounded annually?

Examples:

1. A house is worth £125 000 and appreciates in value by 4.3% p.a. for 5 years. How much is it worth in 5 years?

S56 Apps Maths Banking.notebook September 22, 2017

£49 < £54.40, therefore he can afford to buy the ticket.