Ma9 Finance Review. 1. What is the difference between Full Service banking and Self Service banking?

Transcription

1 Ma9 Finance Review Name 1. What is the difference between Full Service banking and Self Service banking? Full service is face to face, Self-serve is by phone, ATM, or Internet. 2. List 3 examples of Full Serve Banking. Cash cheque, transfer money, pay bills, travelers cheques, Withdraw/deposit Cash, foreign currency purchases 3. List 3 different examples of Self-Serve Banking. Etransfer, pay bills, transfer money, Withdraw/deposit cash at ATM, direct payment (Interac), foreign currency purchases 4. What Service cannot be done by Self-Serve Banking? Deposit or withdraw cash (via phone and internet) 5. List two types of Service charges and explain what they are. Monthly charge charged each month regardless of use Transaction Fee charged if over a certain number of transactions and per each transaction 6. What is the most important thing to remember/do when using your debit/bank card at an ATM or Interac machine? Keep your PIN private 7. What is an important thing to remember/do when using internet banking? Keep card number/pin private, don t use public wifi, make sure it is a secure (encoded) connection, always logout don t just close your browser! 8. Convert the following percentages into decimals a. 15% b. 3% c. 8.5% d. 0.7% I = P x r x t r = I (P t) 100 t = I (P r)

2 P = I (r t) 9. Emilie invested $250 in a Canada Savings Bond for 5 years at 7% interest, her brother invested $310 into a Bond for 5 years at 5.7%. Who had more money once the Bonds matured? How much more money? I=250 X 0.07 X 5 I =310 X X 5 I = $87.50 I=$ = $ = $ Brother had more money, = $60.85 He had $60.85 more money than Emilie. 10. Robdeep invested $2500 into a High Yield Bond for 9 months at 22% interest. What is the interest he earned? How much money does he have now that the bond has matured? I = 2500 X 0.22 X (9/12) I =$ (The zero is very important!!) 11. Suzy Q invested money into an investment and earned $557 in interest at a rate of 12% for 8 years. What was the principal amount Suzy Q invested? I = Prt 557 = P X 0.12 X 8 P = $ The following chart tracks Navreet s Income/Expense of 3 months. Complete the chart. Expense Month 1 Month 2 Month 3 Average Number to use for a budget Variable or Fixed? Phone Bill $120 $138 $ Variable Cable Bill $88 $88 $ Fixed Dog Food $15 $22 $ Variable Clothing $225 $170 $ Variable Paycheque $450 $475 $ Variable Tips $326 $415 $ Variable Investment Income $15 $15 $ fixed 13. Which of the above expenses are recurring expenses?

3 All of them, except clothing can vary a lot by individual 14. What would be an example of an unexpected expense? -something not expected. Things breaking. 15. How do we account for unexpected expenses? Round income down, round expenses up to cover variable expenses. For unexpected expenses we must adjust our budget to make up for the unexpected expense 16. Angie Made the following budget. Use the chart below to find her: Income= $1 445 Expenses= $1 073 Income Monthly Savings= $372 Yearly Savings= $ Sophia wants to purchase a new iphone 9XT for $ She is saving $108 a month. a. Will she have enough money to buy the phone after 5 months? 108 X 5 = 540 She won t have enough Expenses Paycheque (semi-monthly) $ Rent $ Tutoring $ Utilities $ Paycheque (semi-monthly) $ Car Insurance $ Gas $70.00 Groceries $ Cell phone $60.00 Entertainment $40.00 Gym membership $30.00 Miscellaneous $25.00 Total Total 1073 b. If she doesn t have enough:

4 i. How much more does she need to save? = $ ii. By how much does she need to increase her monthly savings? ii / 5 = $47.56 (must round this up to a higher number or she will be short money!) 18. Charan has $420 in savings. He saves $58 a month. a. Can he buy a new laptop for $680 after 5 months? 58 X 5 = $290 $ = $710 Yes he will have enough money! b. How much more does he need or how much extra does he have? = $30 He will have $30 extra! 19. Keaton has $120 saved up. IF he is saving $36 a month, in how many months until he has enough money to buy a new Tablet for $428? = / 36 = 8.56 He will have to save for 9 months. 20. Nimar made $1250 last year. What income should he use for his monthly budget? 1250 / 12 = $ (Round income down!) He should use $104 if fixed, $90-$100 if variable 21. Mirai s paycheque averages $136 every week. What income should she use for her monthly budget? 136 X 52 = $ / 12 = $ She should use $589 if fixed or $575- $580 if Varialbe

5