Help

- Watch and Read
- - Let's Start Thinking
  - Banking and Investing Choices
  - Simple Interest
  - Wrap-Up
  - Alternative Format
- Review
- - Check Your Understanding 1
  - Check Your Understanding 2
  - Check Your Understanding 3
- Practise
- - Exercises
  - Answers
  - Solutions

Wrap-Up

Lesson Summary

In this lesson, we explored topics related to banking. Some topics discussed were:

Features of chequing and savings accounts.
A few alternatives to savings accounts, namely:
- Guaranteed Investment Certificates (GICs), and
- Mutual funds.
Tax-saving investment products, namely:
- Tax-Free Savings Accounts (TFSAs), and
- Registered Retirement Savings Plans (RRSPs).

We were also introduced to simple interest. We saw that:

The balances of an account earning simple interest form an arithmetic sequence and grow linearly with time.
The simple interest formula is $I=Prt$.
Given three of the values in $I=Prt $, it is possible to solve for the fourth.

Take It With You

Previously in this lesson, we considered a situation in which Malik invested $$750$ in a $4$-year GIC that paid $3.2\%$ interest per year. Suppose Malik was able to re-invest the interest each year back into the GIC and earn interest on the interest. Can you modify what you learned in this lesson to determine how much Malik would have in his account if he chose this option?