millionaire - nine

8/12/2019 Millionaire - Nine

1/18

HOW TO BE A

MILLIONAIRE?

Nine Grade 8ii


2/18

PERCENT If 25 families and 20 families believed that Ms. Graces millionaire technique worked.

The the percent of the families that believed Ms. Graces technique that worked is

80%

80% is to 4/5

(Percentage that didnt do their homework)

the percentage that did not do their homework is 5/25

multiply 25 by 4 it is 100.

multiply 5 by 4 it is 20.

20% did not do their homework.


3/18

SIMPLE INTEREST

Simple interest is you start with an amount of money, it adds to

the money you start with by the percent of the income.


4/18

COMPOUND INTEREST

Compound interest is using the money you started with and when

new income comes in, it gets added to the new income. You aremaking more money than simple interest. Simple interest, you have to

multiply the year. Compound interest, you have to put the year in

exponent.


5/18

PERSONAL FINANCE

How do you earn income?

You work!

What do you do with your income?

Compound it

Why do you spend you income?

To eat, to live

Why do you save your income? Save for future life


6/18

STEPS TO BE A MILLIONAIRE

1. Start saving money

2. Start saving early

3. dont spend a lot of money

4. Compound your money, you will get more money than a simple

interest


7/18

UNCLE MORT

Uncle Mort is only providing you interest while youre in high school. You

figure you wont need that money until after you graduate college. After doing

a lot of research on the Internet you find a bank that offers different

compounding interest rates depending on the term of the investment. Once

invested it is then locked in for the time and cannot be withdrawn without

incurring penalties. At the end of 12thgrade, you are going to deposit all of

your money from Uncle Mort into a savings account. Calculate the interest

earned for the following


8/18

8 % F O R 1 Y E A R , C A L C U L A T E D E V E RY 6 M O N T H S

(2417.62) (1+(0.082)^1

=2417.62 x (1.04)

=$2514.32


9/18

1 0 % F O R 2 Y E A R S , C A L C U L A T E D E V E R Y 6 M O N T H S

(2514.32) x (1+(0.102)^1

=2514.32 x ( 1.05)^1

=$2640.036


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1 2 % F O R 3 Y E A R S , C A L C U L A T E D E V E R Y 6 M O N T H S

(2640.036) x (1+(0.122)^1

2640.036 x (1.06)

=$2798.44


11/18

Q1.A

80%The amount of students is 25. The amount that thought Ms. Grace was correct was 20.

In fraction it would be 20/25. 100% = 100/100 [20/25 to 80/100] 80/100 = 80%

This is a simple interest.

What percent of students families thought Ms. Grace was correct?


12/18

Q1.B

20%The amount of students that didnt do their work is 5. The amount of students in the

class is 25. In fraction it would be 5/25. [5/25 = 20/100] 20/100 = %20

This is a simple interest.

What percent of students fail to do their homework?


13/18

Q.2

I earn income by getting money from my parents, which my parents left with his

friends. Who I am living with. I get $20 per day.

I use my income to eat.

I spend my income to live.

So I can save it for future things I want to buy or save it for somewhere I want to go.


14/18

ACTIVITY 1-1 Q.1

I get $2 dollars a day. There is 180 days of a school year. In total

of 180 days I get $360 dollars. So it would be [180 x school year] =

$$$

Calculatethe amount of savings that you have at the end of each year. Please

show your work. Record your answers for each year in the SAVINGS column

of the table below


15/18

ACTIVITY 1-1 Q.2

Opportunity cost:

I maybe would not buy a cookie or a pizza to save some money.


16/18

ACTIVITY 1-1 Q.3

A + [ B x 180 ] = saving

A is the amount of pervious year balance

B is the amount of deposit each day which is $2


17/18

UNCLE MORT

i. 8% for 1 year, calculated every 6 months

2417.62(1.04)2 = $2614.90 ($3870.69 / 6 years)

(2417.62) (1+(0.082))^1

ii. 10% for 2 years, calculated every 6 months

2417.62(1.025)4 = $ 2668.6 ($3251.43 / 6 years)

iii. 12% for 3 years, calculated every 6 months

2417.62(1.02)6 = $ 2722.63 ($3066.13 / 6 years)


18/18

REMEMBER

Its never too late to start saving

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