Transcript Percentages – Interest Brian wants to invest £10 000 for one year. His bank offers two plans. Plan A ‘Annual Booster’: 6·5% per year,

Percentages – Interest
Brian wants to invest £10 000 for one year.
His bank offers two plans.
Plan A
‘Annual Booster’: 6·5% per year, with the interest
added at the end of the year.
Plan B
‘Monthly Plus’: 0·5% per month compound interest,
with the interest added at the end of each month.
Brian will make no withdrawals during the year.
Recommend which plan Brian should use, and why.
Choose level of difficulty
Percentages – Interest
Brian wants to invest £10 000 for one year.
Help
His bank offers two plans.
Step 1:
Plan A
‘Annual Booster’: 6·5% per year, with the interest
added at the end of the year.
Plan B
‘Monthly Plus’: 0·5% per month compound interest,
with the interest added at the end of each month.
Brian will make no withdrawals during the year.
Recommend which plan Brian should use, and why.
Start with Plan A
and work out the
interest on £10,000
and write down how
much savings he will
have at the end of
the year
Percentages – Interest
Brian wants to invest £10 000 for one year.
Help
His bank offers two plans.
Step 2:
Plan A
‘Annual Booster’: 6·5% per year, with the interest
added at the end of the year.
Looking at Plan B
we are going to be
adding interest at
the end of every
month.
Plan B
‘Monthly Plus’: 0·5% per month compound interest,
with the interest added at the end of each month.
We are starting with 100% so
after 1 month we will have
___%
Brian will make no withdrawals during the year.
To get this we multiply by ____
Recommend which plan Brian should use, and why.
Percentages – Interest
Brian wants to invest £10 000 for one year.
Help
His bank offers two plans.
Step 3:
Plan A
‘Annual Booster’: 6·5% per year, with the interest
added at the end of the year.
Looking at Plan B
we are going to be
adding interest at
the end of every
month.
Plan B
‘Monthly Plus’: 0·5% per month compound interest,
with the interest added at the end of each month.
£10 000 x _____ gives the
amount at the end of the first
month.
Brian will make no withdrawals during the year.
Because the % increases by
0.5% each month we keep
doing the sum x ______ for
another 11 months
Recommend which plan Brian should use, and why.
Percentages – Interest
Brian wants to invest £10 000 for one year.
Help
His bank offers two plans.
Step 4:
Plan A
‘Annual Booster’: 6·5% per year, with the interest
added at the end of the year.
Looking at Plan B
we are going to be
adding interest at
the end of every
month.
Plan B
‘Monthly Plus’: 0·5% per month compound interest,
with the interest added at the end of each month.
This can be written as:
Brian will make no withdrawals during the year.
Work this out and answer the
question
£10 000 x (_______)12
Recommend which plan Brian should use, and why.
End of Problem
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Percentages – Interest
Brian wants to invest £10 000 for one year.
Help
His bank offers two plans.
Step 1:
Plan A
‘Annual Booster’: 6·5% per year, with the interest
added at the end of the year.
Plan B
‘Monthly Plus’: 0·5% per month compound interest,
with the interest added at the end of each month.
Brian will make no withdrawals during the year.
Recommend which plan Brian should use, and why.
Start with Plan A
and work out the
interest on £10,000
and write down how
much savings he will
have at the end of
the year
Percentages – Interest
Brian wants to invest £10 000 for one year.
Help
His bank offers two plans.
Step 2:
Plan A
‘Annual Booster’: 6·5% per year, with the interest
added at the end of the year.
Looking at Plan B
we are going to be
adding interest at
the end of every
month.
Plan B
‘Monthly Plus’: 0·5% per month compound interest,
with the interest added at the end of each month.
We are starting with 100% so
after 1 month we will have
_____%
Brian will make no withdrawals during the year.
To get this we multiply by ____
Recommend which plan Brian should use, and why.
Percentages – Interest
Brian wants to invest £10 000 for one year.
Help
His bank offers two plans.
Step 3:
Plan A
‘Annual Booster’: 6·5% per year, with the interest
added at the end of the year.
Looking at Plan B
we are going to be
adding interest at
the end of every
month.
Plan B
‘Monthly Plus’: 0·5% per month compound interest,
with the interest added at the end of each month.
£10 000 x ______ gives the
amount at the end of the first
month.
Brian will make no withdrawals during the year.
Because the % increases by
0.5% each month we keep
doing the sum x ______ for
another 11 months
Recommend which plan Brian should use, and why.
Percentages – Interest
Brian wants to invest £10 000 for one year.
Help
His bank offers two plans.
Step 4:
Plan A
‘Annual Booster’: 6·5% per year, with the interest
added at the end of the year.
Looking at Plan B
we are going to be
adding interest at
the end of every
month.
Plan B
‘Monthly Plus’: 0·5% per month compound interest,
with the interest added at the end of each month.
This can be written as:
Brian will make no withdrawals during the year.
Work this out and answer the
question
£10 000 x (_______)12
Recommend which plan Brian should use, and why.
End of Problem
Return to Menu
Percentages – Interest
Brian wants to invest £10 000 for one year.
Hint
His bank offers two plans.
Start with Plan A
Plan A
‘Annual Booster’: 6·5% per year, with the interest
added at the end of the year.
Plan B
‘Monthly Plus’: 0·5% per month compound interest,
with the interest added at the end of each month.
Brian will make no withdrawals during the year.
Recommend which plan Brian should use, and why.
Percentages – Interest
Brian wants to invest £10 000 for one year.
Hint
His bank offers two plans.
How do you calculate the
increase for one month using
a multiplication?
Plan A
‘Annual Booster’: 6·5% per year, with the interest
added at the end of the year.
Plan B
‘Monthly Plus’: 0·5% per month compound interest,
with the interest added at the end of each month.
Brian will make no withdrawals during the year.
Recommend which plan Brian should use, and why.
Percentages – Interest
Brian wants to invest £10 000 for one year.
Hint
His bank offers two plans.
You need to repeat this
multiplication 12 times
Plan A
‘Annual Booster’: 6·5% per year, with the interest
added at the end of the year.
Plan B
‘Monthly Plus’: 0·5% per month compound interest,
with the interest added at the end of each month.
Brian will make no withdrawals during the year.
Recommend which plan Brian should use, and why.
Percentages – Interest
Brian wants to invest £10 000 for one year.
His bank offers two plans.
Plan A
‘Annual Booster’: 6·5% per year, with the interest
added at the end of the year.
Plan B
‘Monthly Plus’: 0·5% per month compound interest,
with the interest added at the end of each month.
Brian will make no withdrawals during the year.
Recommend which plan Brian should use, and why.
End of Problem
Return to Menu
Percentages – Interest
Brian wants to invest £10 000 for one year.
Hint
His bank offers two plans.
Start with Plan A
Plan A
‘Annual Booster’: 6·5% per year, with the interest
added at the end of the year.
Plan B
‘Monthly Plus’: 0·5% per month compound interest,
with the interest added at the end of each month.
Brian will make no withdrawals during the year.
Recommend which plan Brian should use, and why.
Percentages – Interest
Brian wants to invest £10 000 for one year.
Hint
His bank offers two plans.
What multiplication will work
out the value after 1 month
Plan A
‘Annual Booster’: 6·5% per year, with the interest
added at the end of the year.
Plan B
‘Monthly Plus’: 0·5% per month compound interest,
with the interest added at the end of each month.
Brian will make no withdrawals during the year.
Recommend which plan Brian should use, and why.
Percentages – Interest
Brian wants to invest £10 000 for one year.
Hint
His bank offers two plans.
Repeat the multiplication 12
times
Plan A
‘Annual Booster’: 6·5% per year, with the interest
added at the end of the year.
Plan B
‘Monthly Plus’: 0·5% per month compound interest,
with the interest added at the end of each month.
Brian will make no withdrawals during the year.
Recommend which plan Brian should use, and why.
End of Problem
Return to Menu
Percentages – Interest
Brian wants to invest £10 000 for one year.
Hint
His bank offers two plans.
Plan B involves increasing by
a percentage. Then increasing
that new amount by a
percentage and so on.
Plan A
‘Annual Booster’: 6·5% per year, with the interest
added at the end of the year.
Plan B
‘Monthly Plus’: 0·5% per month compound interest,
with the interest added at the end of each month.
Brian will make no withdrawals during the year.
Recommend which plan Brian should use, and why.
End of Problem
Return to Menu