Problem 1 – Bank ChoiceYou receive a $1,000 tax refund.
You can either:
- Put it in First State Bank savings (0.20% APY, monthly)
- Or put it in a 12-month CD at Texas Bank (3.10% APY, annual) for 1 year.
(a) Compute amount after 1 year in each.
(b) Which is better and by how much?
(c) Write 1 sentence explaining why.
Continue
Problem 2 – College Fund Growth
You start saving $2,500 for college at age 17 in an account that pays 2.4% compound interest, quarterly.
How much will you have after 4 years?
Continue
Problem 3 – Simple vs Compound (local job)Structure your content
You get a summer job at H‑E‑B and save $3,000 for 2 years.Choose:- Simple savings account at 2.0%- Reward checking that compounds monthly at 1.9%
- Compute total in each. Which grows more? By how much?
Continue
Problem 4 – Car Down‑Payment Savings
IYou want to buy a car in 18 months.
You save $150 per month in an account earning 3% APY, compounded monthly.
(a) Compute total deposits (ignore interest)
(b) Compute growth using average balance ($150×18 ÷2) for 1.5 years.
(c) Add deposits + interest.
(d) How close does this get you to a $3,000 goal?
Continue
Problem 5 – Understanding APY vs APR
A local car loan advertises 5.9% APR, but the interest is compounded every month. If you calculate the APY (the true yearly rate with compounding), it is a little higher than 5.9%. In your own words, explain WHY that is in a few sentences.
This way, you will keep the audience's attention
Continue
Problem 6 Apply the thoughts
Analyze ( in 2–3 sentences) why compound interest is usually better for saving/investing but worse when you owe money.
Continue
Thank you!
Start
Real life practice unit 3
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Created on October 1, 2025
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Transcript
Problem 1 – Bank ChoiceYou receive a $1,000 tax refund. You can either: - Put it in First State Bank savings (0.20% APY, monthly) - Or put it in a 12-month CD at Texas Bank (3.10% APY, annual) for 1 year. (a) Compute amount after 1 year in each. (b) Which is better and by how much? (c) Write 1 sentence explaining why.
Continue
Problem 2 – College Fund Growth
You start saving $2,500 for college at age 17 in an account that pays 2.4% compound interest, quarterly. How much will you have after 4 years?
Continue
Problem 3 – Simple vs Compound (local job)Structure your content
You get a summer job at H‑E‑B and save $3,000 for 2 years.Choose:- Simple savings account at 2.0%- Reward checking that compounds monthly at 1.9%
Continue
Problem 4 – Car Down‑Payment Savings
IYou want to buy a car in 18 months. You save $150 per month in an account earning 3% APY, compounded monthly. (a) Compute total deposits (ignore interest) (b) Compute growth using average balance ($150×18 ÷2) for 1.5 years. (c) Add deposits + interest. (d) How close does this get you to a $3,000 goal?
Continue
Problem 5 – Understanding APY vs APR
A local car loan advertises 5.9% APR, but the interest is compounded every month. If you calculate the APY (the true yearly rate with compounding), it is a little higher than 5.9%. In your own words, explain WHY that is in a few sentences.
This way, you will keep the audience's attention
Continue
Problem 6 Apply the thoughts
Analyze ( in 2–3 sentences) why compound interest is usually better for saving/investing but worse when you owe money.
Continue
Thank you!
Start