4.10C Savings Options

Jacob needs $79 to buy a remote control car. What is the advantage of Jacob saving his money in a savings account at his bank?

• He can earn interest on money saved in a savings account.

• He would earn no interest on money saved in a savings account.

Mary needs $120 to buy a new computer program. What is the disadvantage of Mary saving her money at home?

• She knows where her money is at all times.

• Someone may take the money and spend it.

What are some future things that you might save for by using a savings account at a bank?

Which statement is true about saving money in a bank savings account?

• You may lose money.

• You may end up with more money than the amount you deposit.

• You can never get your money out again.

• You have to pay the bank to keep your money there.

Which is a disadvantage of saving your money in a secret hiding place?

• You cannot always get to the money.

• The money will not earn interest.

• You will end up with more money than you saved.

• You can save more money.

If you save $700 and earn $3 interest for every $100, how much money will you have in all?

• $721

• $703

• $730

• $7,021

Vincent earned $36 on savings of $900. What interest did he earn?

• $2 for every $100 saved

• $4 for every $100 saved

• $3 for every $100 saved

• $9 for every $100 saved

Savings Plan A: Save $15 in a savings account every week for 26 weeks.

Savings Plan B: Save $50 in a savings account every month for 6 months.

Which statement is true about the savings plans?

HINT: Figure out how much money will be saved with each plan!

• It would be better to save at home than to use either of these savings plans.

• At the end of the time, there will be the same amount of money using either plan.

• There will be more money in the savings account using Plan A.

• There will be more money in the savings account using Plan B.

Answer explanation

Plan A:

$15 x 26 weeks = $390 total

Plan B:

$50 x 6 months = $300 total

4-STEP PROBLEM: Mel walked 4 dogs. She earned $15 each for each dog. She earned $12 an hour for babysitting for 3 hours. If she spends $42 on shoes and saves the rest, how much money will she save?

• $54

• $60

• $36

• $96

Answer explanation

Step 1: 4 dogs x $15 = $60 for walking the dogs

Step 2: $12 x 3 hours = $36 for babysitting

Step 3: $60 + $36 = $96

Step 4: $96 - $42 = $54

Emmy bought a doll and then sold it for more than she paid for it. How is that like earning interest on a bank savings account?