Lesson 6 & 7 paragaph 2.1 part 2

• Economie
• Middelbare school
• havo
• Leerjaar 3

Welcome T3!

Please sit according to your seating plan :)

Economics: lesson six

Plan for today

1. Start of the lesson   

2. Meme and lesson goals

3. Explanation: chapter 2 paragraph 2.1 part 2

4. Time to do the homework

Chapter 2 Dealing with money

Paragraph 2.1 Saving and investing?

Goals of the lesson

Last lesson:

1. You are able to explain the saving motives in your own words

2. You remember the different types of saving accounts

3. You are able to explain the difference between variable- and fixes interest

4. You are able to calculate single- and compound interest (and today)

Today:

5. You are able to explain what nominal interest rate and real interest rate means.

6. You are able to explain the difference in risk of several forms of investment

Practice compound interest

nn

I have €125,- savings, interest = 0,3%. Calculate the compound interest for 4 years.

Investing in tangible assets

-Government needs money --> bonds

                     - Fixed interest (little risk)

-Companies need money--> stocks

                    - company makes a profit? --> return on investment

                    - a loss --> nada (more risk)

Inflation

Nominal interest =  in €€€€€

Real interest = nominal corrected by inflation

Current state

Prices of goods and services are 3% more expensive than a year earlier.  CPI= 3%

So you can buy less with the same amount of money. Purchesing power decreased.

CPI

Consumer price index.

An imaginary shopping cart with products an avarage household buys. 

Takes 'weight' into account.

Practice

Do exercise 16

We'll check it together

Goals of the lesson

Monday:

1. You are able to explain the saving motives in your own words

2. You remember the different types of saving accounts

3. You are able to explain the difference between variable- and fixes interest

4. You are able to calculate single- and compound interest

Today:

5. You are able to explain what nominal interest rate and real interest rate means.

6. You are able to explain the difference in risk of several forms of investment

Let's get to it!

• What: Do the following exercises: 5, 10, 11, 12, 17, 19 and 20

• With who: In pairs or alone

• Purpose: Process all theory from paragraph 2.1

• Done?: Call me, I'll tell you what to do next