HOW TO BE A MILLIONAIRE?

Nine Grade 8ii

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.

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.

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 are making more money than simple interest. Simple interest, you have to multiply the year. Compound interest, you have to put the year in exponent.

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

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

UNCLE MORT
Uncle Mort is only providing you interest while youre in high school.
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 Once invested it is then locked in for the time and cannot be withdrawn without incurring penalties.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 12th grade, you are going to deposit all of your money from Uncle Mort into a savings account. Calculate the interest earned for the following You figure you wont need that money until after you graduate college. After doing

8 % F O R 1 Y E A R , C A L C U L AT 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

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

(2514.32) x (1+(0.102)^1 =2514.32 x ( 1.05)^1 =$2640.036

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

(2640.036) x (1+(0.122)^1 2640.036 x (1.06) =$2798.44

Q1.A
What percent of students families thought Ms. Grace was correct?

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.

Q1.B
What percent of students fail to do their homework?

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.

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.

ACTIVITY 1-1 Q.1

Calculate the 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

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] = $$$

ACTIVITY 1-1 Q.2

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

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

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.
iii.

10% for 2 years, calculated every 6 months

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

12% for 3 years, calculated every 6 months

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

REMEMBER

Its never too late to start saving