7. SO MANY BANKS!!!
⢠Why do you think there are different banks
instead of just one?
⢠What might people look for in a bank?
⢠Why would you save with a bank?
8. OLI â To calculate interest rates and
decide on the best bank
⢠Today you are going to calculate the amount
of money a customer would gain in interest
with different banks.
⢠Answer the questions and decide which bank
offers the best interest rate.
9. HOW TO CALCULATE INTEREST
⢠Letâs try an example:
⢠John puts £250 into his bank account with
Northern Bank
⢠Northern bank are giving a 5% interest rate
⢠First find 1% of Johnâs money - ÂŁ2.50
⢠Now times it by the interest rate - £2.50 x5
⢠This gives us the amount of interest which is
ÂŁ12.50
⢠How much money does John have in his bank
account now?
10. Compound interest
⢠If John now has £262.50 and the interest rate is
still 5%, how can we calculate his second year?
⢠£262.50 divided by 100 = 2.625 or £2.63
⢠£2.63x5=£13.15
⢠Add this to the original £262.50
⢠His total in the second year is £275.65
⢠How much has John gained in interest over two
years?
11. Success Criteria
⢠Find 1% of the customerâs original amount
(divide by 100)
⢠Multiply this by the interest rate
⢠This shows the money gained in interest
⢠Add this to the original amount to find the
new bank balance