Professional Documents
Culture Documents
PDF文件 5
PDF文件 5
PDF文件 5
Money Matters
(Answers)
Name: ( ) Class:
Fill in the blanks to complete the conversation with the words given.
interest rate account savings withdraw
Bank teller: That’ fine. What kind of account do you want to open?
Bank teller: All right. Let me do them for you. A moment, please!
2
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.
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.