Wednesday, April 22, 2009

Tell Me a Story; Give Me an Account.


Another way of asking someone to tell you a story is to say: "Would you please give me an account of what you have been doing. An account is a story; Likewise when you put money in the bank they place it in an account; if we look at the account over time it can tell us a story about what has happened to our money. There are many tools on the Internet for helping you see what happens to money over time. Today we will use one of those tools. Click on the link on the right called "The Money Tool " and answer the questions below on the comment link.

1. If you put $100 to start your account and you add $100 per month, how much will you have after five years.


2. Interest is the amount of money the bank will give you for letting them use your money; how much interest did the bank pay you over five years on the plan in number 1?


3. Let's say you bought your first car with a credit card; the car cost $3000; if it takes you five years to pay off that credit card how much did you end up paying for the car?



4. If you open a stock market account with $100 and add $100 per month; how much money will you have after five years?

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