A1. To determine the amount of interest earned, we need to know the interest rate. Unfortunately, the interest rate is not provided in the given information, so we cannot calculate the interest earned on $10,000.
B1. Banks choose to represent their interest rates as percentages because it is a standardized and easily understandable way to communicate the rate of return on savings or loans. Percentages allow for easy comparisons between different interest rates and make it simpler for customers to evaluate the potential gains or losses from their financial transactions.
C1. Whether it is worth transferring money to a new bank account with a slightly higher interest rate depends on various factors such as the amount of money involved, any fees associated with the transfer, the potential difference in interest earned over time, and personal financial goals or needs. A 0.02% increase in interest rate might not seem significant, but it could still add up over a long period of time.
C2. The dollar amount that might make the transfer worth it would depend on individual circumstances. It would be helpful to calculate the difference in interest earned between the two banks over a specific period, assess any associated costs or fees, and compare it to the potential gains or benefits from higher interest. Based on this analysis, one can determine the dollar amount that would make the transfer worthwhile.
A1. Find the amount of interest you would earn if you saved $10,000 at this rate. ( U3L10 page 10)
B1. Why do you think banks choose to represent their interest rates as percentages? (This is your opinion. Your answer will be correct if you support your opinion.)
C1, Is it worth is to transfer your money to a new bank account with an interest rate that is 0.02% higher than your current bank?
C2. What dollar amount might make this transfer worth it?
1 answer
10 answers