F.D.B.W.A.

Szeto Ho Secondary School

F.3 English and Mathematics Collaboration Project

(Simplified Version : English)

Money Matters
(Answers)

Name: ( ) Class:

Let’s learn more!

Fill in the blanks to complete the conversation with the words given.
 interest rate account savings withdraw

Bank teller: Hello sir, how can I help you?

Joan: I’d like to open a bank (a) account , please.

Bank teller: Certainly. Can you show us your ID card ?

Joan: Yes, sure.

Bank teller: We also need the proof of your current address.

Joan: I’ve got a water bill.

Bank teller: That’ fine. What kind of account do you want to open?

Joan: I want to have a (b) ____savings____________ account so that I can deposit

money and (c) ____withdraw_______ it at ATMs when I need it.

Bank teller: All right. Let me do them for you. A moment, please!

Joan: By the way, is the (d) ____interest rate___ high?

Bank teller: Not really. It’s only 3% a month.

Joan: I see. I need to think about it. Thank you.

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Simple interest

The following text introduces simple interest. Read it and answer the questions.

Simple interest
If you have a savings account with a bank and deposit some money into it, the bank will pay you
extra money for saving with them. This extra money is called interest. There are two types of
interest. Let’s learn one of them : simple interest.
Simple interest is the interest paid on the principal. It is calculated using this formula:
Interest (I) = Principal (P) × Annual interest rate (R%) × Period of time (T)
“T” refers to the number of year of deposit.
If $4,000 is deposited and the annual interest rate is 8%, after one year, the simple interest is $320
($4,000 x 8% x 1 = $320). The sum of the interest and the principal is $4,320.

1. Fill in the blanks to complete the following sentence.

When we (a) ____deposit___ money into the bank, they bank will pay us (b)___extra__
money. This extra money is called (c) ____interest___________ .

2. According to the example in the text, what do the following figures refer to ?
(a) $4,000 ______ principal ________
(b) 8% _____ annual interest rate _______
(c) 1 ______ period of time _______
(d) $320 _____ simple interest ________
(e) $4,320 ___ the sum of the interest and the principal __
3. Patrick deposits $20,000 into the bank. The annual interest rate is 5%. With simple interest, how
much money will he have in the bank after two years?
$20000 x 5% x 2 = $2000
$20000 + $2000 = $22000

Revision : Vocabulary

Saving our money in the bank is one of the ways to grow it. If you deposit a principal of $1,000
and the annual interest rate is 1%, then you can withdraw $1,010 as the amount after one year.
The extra $10 is called interest.

1. Deposit D A. To take money out from a bank account

2. Principal C B. The extra money given by the bank to its
3. Interest B customers after a certain period

4. Interest rate F C. The money that someone puts into a bank

account to gain interest
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5. Annual interest rate G D. To put money into a bank account
6. Amount E E. The total amount of money someone can
7. Withdraw A take out from their bank account after a
period of time (i.e. principal + interest)
F. The percentage of the principal that
accounts for the interest
G. The interest rate for one year