Compund Interest

How To Get Rich

There is a lot written about how to actually get financially independent in your life.  You should want to know more about how finances work.

Typically you can see how people who should be rich aren't... take Mike Tyson... he was undisputed world champion.  He was getting paid millions of dollars per fight ($35 in one against Evander Holyfield).  He had an estimated net worth of $300,000,000 US dollars (about $400 million in NZ).   How ever he lost his fortune.

This post is not about boxing, it is not about careers with big incomes (although that helps).  This post is about 'Interest' - the money that is paid for borrowing money.  It is something that very very few people can avoid.

Interest is charged as a % of the amount borrowed (called the principle).  The calculation of the percentage is shown for a full year (p.a. is latin for per year).

But it's never a simple thing.  The banks/lenders will want to recalculate interest and add that onto the amount you borrowed.  This is called compounding...

The trick to getting rich is to be able to save an amount of your pay and invest it to gain compound interest.  Equally it is important to avoid getting charged compound interest (pay off your loans quicker).

New Worth Example

No Qualification Job

I've created this example for you - it is an attempt to show you how a decade of work will look if you are able to save kiwisaver and one twelfth of your income.  

It is definitely not a template for you to copy - yours will be your own and you'll need to personalise it.  Pretty much you need to be aware that in the short term those instantly into entry level jobs (I've put the pay at around minimum wage - which has just gone up yesterday) probably will feel richer than those who gain extra skills (trade or education).  But remember that those who train further will almost always get high wages or salary.  

The thing that you can see is that there are calculations around adding, multiplying, fractions, percentages (which I've done as decimals), and integers (the car loan is a negative).  

Don't copy this example as yours - but it shows you what you're aiming for.  

Net Worth Calculations

Future Focused Individual Study

The purpose of this lesson today is to get you thinking about the big picture future plans around your lives.  For this activity I want for  you to imagine that you are 25 years old (about a decade away).

I want for you to make a loose plan around what things you want to do/accomplish/try over the next ten years.  I want for you to pick some pathways.

Primarily this is a way of looking at some careers/jobs that you could have in the future.  To research these (pays, how to get the job, what schooling you need) you need to go to the careers website www.careers.govt.nz and look up various interesting jobs.

You can then calculate how many years of income you have from now until then (remember some careers need to have poly or uni training.


Then I'd like you to think about what sort of savings you can make over the next 10 years.  It would be good idea to try and calculate a fraction of your pay (say one twentieth).   You will also be put into a kiwisaver scheme where you'll save another 3% of your pay.

There are chances for you to find some integer money values (from things you will owe money for).  Think about student loans, car loans, mortgages.

Then I would like to you to create a theoretical net worth calculation.


Net Worth is the dollar value at any particular moment.  It is calculated by taking all the value of things you own and taking off the things you owe.

E.g.    Bob has a $12000 car, a $270,000 house, super annuation worth $23,000 a mortgage on the house of $210,000 and a car loan of $7,000.  His net worth calculation is...

NET WORTH = WHAT YOU OWN - WHAT YOU OWE
                        = (12 + 270 + 23) - (210 + 7)
                        = 305 - 217
                        = 88                                         Bob's net worth is $88,000 dollars.

Subway Shout

Subway (Activity From BOPMA)

This is an activity about spending money.  It can be evidence for adding (lots of different items), minus (what change you get), timesing (several of these particular ones), division (splitting the bill).

Potentially you can do some fraction or percentage calculations.

E.g. What % of the money was spent on drinks or What fraction of money was spent on subs?


Hint change the $ value from 55 and change the number of people.

The premise is unique to you as you will choose how much money you have to spend.  How many people are eating and what items you will buy.

Integers

Integers Are A Challenge

For Numeracy you need to show me once that you can do integers.  This is tougher as integers represents all numbers on a number line that have no fraction or decimal.

They can be positive or negative.
e.g. Yes Integers
        153
        3,998
        -45
        -1,000,000

e.g. No Not Integers
         21.5
         - 1/2           (minus a half)

Because this topic integers is in a portfolio there has to be a real life context.  Negative numbers are a challenge in real life.   e.g. I can show you 20 pens, I can show you 8 pens, I can even show you zero pens.  But I can't show you negative five pens.  

The best thing to use is the idea of money.  Negative money is when you owe someone money.  E.g. my bank account can show I have $100, my bank account can show that I have $33.  It can also show that I have minus $25 (i.e. I have over drawn the account - spent too much).  

Here are the basic rules of Integers...

Real life examples can be thinking about how your real life finances (net worth) will look like after you've taken out a student loan, overdraft, car loan or even a mortgage.  Most young people will have a negative net work (all the things you own - all the things you owe) from about the age of 18 to 40.  That's when they'll have finally paid off their debts.  

[I'm aware that the last paragraph has lots of technical financial terms in there so will have to take the time to explain this stuff].  

Other Fraction Situations

Please Hand In...

I'll need to gather off each of you some more evidence towards 26623 today.  Yesterday we did some fraction work - I posted three possible questions about NCEA credits and fractions with those yesterday.  Here are some other situations that you could use...

Donation To Charity.  
Lots of people like to give a fraction of their pay/pocket money to charity.  You could do a page on where your money comes from (that can be evidence of adding).  Then you can calculate a fraction that you could give away (like giving away 1/12th to the SPCA).

Survey of Canteen
You can take out one interval and see how many people are buying food from the canteen.  Then you can work out what fraction of them a buying a certain item (like a pie).








Budget For Shopping.
You can take your family shopping receipt and work out what fraction of the bill goes to things like fruit or meat or treats or toiletries etc.




Again all of these need to be personalised to your own experiences and you'll need to have these each on their own piece of paper.  

Do ask me questions and for help - I'm here to guide you through.  
Great to see the progress of most of you - I've a summary document to show you all where you are at heading towards the credits.  

Subjects at Waihi College

Here is your subjects...

Fractions in Real Life

Fractions For Numeracy

One of the more challenging things that you'll have to do is to show you can do fractions in a real tense (real life).

Remember that your fractions should be found from your own numbers in a real example.

Here is the online exemplar example from www.nzqa.govt.nz website.

[this is a great place for all kiwi students to know where to find the difficulty of each part].

Here is a plan for a hui with lots of people - you can see how many people are coming along and that the first problem is a fraction one (one third).

Can you see that the answer has words, working out and units (cups) so that it shows all required.   


Here are some practice ones for you...

1. John weighs 98 kgs.  The doctor tells him that his weight 2/15ths fat.  How much kgs of fat is that?
2. The doctor tells him that he needs to lose 1/10th of his weight.  How much should he weigh after a diet?

Actual real life problems that you can work on.

NCEA Level One.  You need to get 80 credits to pass Level One.  What fraction of all your credits is 80 credits?

NCEA Level One.  How many credits will you expect to have sat by the end of this term - i.e. what is one quarter of your internal credits?

NCEA Level One.  What fraction of your credits offer literacy?  What fraction of your credits offer numeracy?

Dealing with Fractions

Fractions
This is an area of confusion for a lot of students.  Fractions are old school mathematics and require some pretty powerful head space.  Unless you have a calculator (then it's easy)... you guys are allowed calculators.

Here is the logic behind fractions...

Fractions are things that confuse heaps of students... lots get through without ever really knowing what they're all about.  I always think about fractions with my stomach.  I think of bars of chocolate (cause they're rectangles) or cakes (cause they're round).

The key things you need to know is that they're parts of wholes.  They lie between the numbers on a number line...

They don't always have to be between 0 and one (e.g. you can have 'three and a half'.

Class activity - competition to see where a fraction of a line is on the whiteboard (some rewards up for grabs).  



Equivalent Fractions -

here is the link 

This is when the fraction shows the same amount of a fraction but looks different.  This is an interactive teacher led animation.  You can see how the fractions are the equal (balanced) but have different numbers top/bottom.  Other good learning here is the decimal on the bottom - you can use a calculator to find this (use the divided by button).

Here is the button on the calculator for fractions...

Can use see the grey button under the "Abs" button.  That's for fractions.


Try some of these...

1.  What is one fifth of 730?

2.  What is nine tenths of 860?

3.  What is five twelfths of 288?

4.  Increase 50 by one quarter.

5.  Increase 180 by two thirds.

6.  Decrease 360 by one tenth.

7.  Decrease 440 by three fourths.

BBQ

Context Number

Here is an e-copy of the work we are doing on the school BBQ.

It is a rich document where you can find lots of work on...

Adding/Subtraction/Times/Dividing

Percentages/Fractions/Decimals

(not so easy on integers).

Remember you have a page - name on top with 26623.

Show working/symbols (like "=" signs).  Write some words to go with your working.  

Do ask for help.  

Numeracy Problem

Part Time Work

Please calculate for me how much work you will need to do in order to buy a surfboard (substitute in other gift) worth $345.00 (or what ever)

Remember...
Separate Paper, Sentences, Working (aka maths symbols like "="), Units, Reasonable Answers.

Computations

Adding, Minus, Times and Divide.
These are a core component of what you have to be able to do at year 11.   They are the most common problems and ones that you've been learning for years.

This year I'm not going to teach you the methods of + - x or / ... these have been covered extensively previously.  This year I'm going to teach you about the communication of your calculations.  

For numeracy you will need to be clear in what you are doing.  Some students can look at a problem and find the *right* answer... but that is all they put down.  This is not as important as being able to show/communicate your working.  

For all your work - remember that I've got to keep all your evidence [that's why you need to name your pages]  You will need to clearly show...

1. Words - telling me (the marker) what you are calculating.
2. Symbols - all the add/minus/times/divide symbols (and fractions/decimals/etc)
3. Any Units - like "hours" or "days" etc.  
4. There should be a logical order if possible.  

Remember for 26623 (Number Standard) your answers have to be 'reasonable' - they can't be crazy off.  E.g. saying "For lunch I ate 540 kgs of food".  

Evidence In Numeracy

This is What I Need From You

The way that the portfolio works is that you've got to show me that you can use your maths knowledge in the real world.  I need the date, the paperwork or video or photo, and that it relates to real life.  You will need to help me with accumulating this evidence.

There are three topics that we will do with our portfolios...
Number & Measurement & Statistics.

Here is the paperwork that each standard has -

Personal Goal This Year

Personal Goals

It is  really important that you keep on track this year.  Here are some things that will greatly help you this year...

1. Everything matters - every single assessment is vital - don't think "oh it's only worth two or three credits".  Yo will need to keep constantly ahead of your work.  This is for all your subjects.  
2. Know what you have chances in.  Know exactly how many credits you have available to get your 80 credits.  If you have 100 available from you subjects you will need to pass four out of every five standards.  
3. Remember that the externals are harder too pass - work hard on those internals why you can get ahead.  
4. Turning up makes a big difference.  Waihi College students that passed Level One in 2014 averaged 89.3% attendance.  Those that failed Level One averaged 73.8% attendance.  
5. Most students have two subjects that they do really good at.  Then there are four other subjects... you have to concentrate on these ones.  You can't afford to have bad subjects - ones that you don't pick up standards in.  Attitude is important but so is effort and seeking help.  

Definitely put this maths course to the top of your attention.  Our course is about accumulating up evidence that you've got the maths.

Welcome to Year 11 Maths

Welcome to the start of our year here at Waihi College. 

This course is a vital ingredient for getting through your NCEA Level One.  This is probably the most important class you will have this year - numeracy is the number one reason any NZ student fails NCEA.  

NCEA needs...

1. 80 or more credits - typically you will be offered between 90 and 135 credits (depending on your subjects), 
2. Literacy (10 credits)
3. Numeracy (10 credits).  

To get numeracy you will need to get the ten credits either... in a portfolio (no tests but documented work) or in achievement standard tests.  The challenges is that there are not many standards that have numeracy (physics and one geography standard and maths).