Chapter 1 Planning Your Financial Future: It Begins Here
25
1. Go to the Internet and do a search for a
fi nancial calculator. There are many good
fi nancial calculators that are available online.
Look for one that calculates compound
interest daily over a period of years. You may
need to search using the term daily compound
interest calculator or the term future value calculator. Read the calculator notes
to be sure interest is compounded daily in the calculations.
2. Using the table that follows and the online fi nancial calculator, calculate the
ending balances using the interest rates and the number of years given.
Deposit Annual Interest Rate Number of Years Compounded Ending Balance
$1,000 5% 20 Daily
$2,000 3% 15 Daily
$3,000 2% 25 Daily
Web
Connect
Financial Calculators
Needs and Wants
A Checklist
Do you ever think about what you really need and what you want? Use this checklist
to help you consider your needs and wants.
Yes No
_____ _____ 1. Do I need to buy new clothes to look presentable?
_____ _____ 2. Do I need to buy a car to get to school?
_____ _____ 3. Do I need to save money for college?
_____ _____ 4. Do I need to buy the latest DVDs?
_____ _____ 5. Do I need to go the movies?
_____ _____ 6. Do I have to borrow money to make it through the week?
_____ _____ 7. Do I need to buy the newest video games?
_____ _____ 8. Do I need to buy special sports equipment for the teams
I play on?
_____ _____ 9. Do I need a salon haircut?
_____ _____ 10. Do I need to go out to eat with my friends every Friday
night?
Being
Financially
Responsible