Thursday

A good day. We talked about money, loans, and interest rates. There were some really interesting conversations in the morning. Our reading for today is posted to the right if you are interested in discussing it at home.

Homework
Question Number 8 below.



Math Today

1. Gandallf takes out a loan for $1000.00. He agrees to pay back 10% interest. How much interest will he have to pay back.

2. Frodo takes out a loan for $1873.42. He agrees to pay back 7% interest. How much interest will he have to pay back?

3. Samwise takes out a loan $423.54. He agrees to pay back 9.5% interest. How much TOTAL will he have to pay back?

4. Sauron lends $10 000 to Gollum. Gollum agrees to pay back 10% interest on the first $5000, and 5% on the second $5000. How much in total will Gollum have to pay back?

5. A new home costs $350 000. Bilbo will pay back $50 000 plus 2% interest each year for 7 years. The interest works like this: 2% interest on the 350 000 the first year. The second year, 2% interest in the remaining $300 000, the third year, 2% interest on the remaining $250 000, and so on.

How much, all in after 7 years, will Bilbo's house actually cost?

6. The bank lends $1000 to Spencer to buy a truck. Spencer has to pay it back at 6% interest. The bank also lends $5000 to Luke to buy a car. Luke has to pay it back with 5.5% interest. The back also lends Kira $10 000 at 9% interest to buy a horse. Everyone pays their loand back. How money did the bank make off these three deal?

7. Who is paying more interest. Alice, who takes out a $13 000 loan at 12%?  Jonathan, who takes out a $18 000 loan at 10%? Or Mark who takes out a $15 000 loan at 9%?

8. You need $50 000 dollars. BMO offers you $65 000 at 7%, TD offers you $70 000 at 6%, and Royal Bank offers you $55 000 at 11%. Which loan should you take to pay the least interest?