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Finding total money saved | Personal financial literacy | 4th grade math (TX TEKS) | Khan Academy

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    - [Instructor] We're told Lena puts $35
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    in her savings account
    each month for nine months.
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    She earns $1.25 total
    interest during that time.
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    What is the balance
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    in Lena's savings account
    after nine months?
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    Pause this video, have a go at it.
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    Okay, so first, we just have to calculate
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    how much she put in and
    then add the interest.
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    So, the amount that she
    puts in is $35 per month
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    times nine months.
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    So, if we take $35 times nine months,
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    9 times 5 is 45,
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    9 times 3 is 27, plus 4 is 31.
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    So, that's how much she deposits,
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    but she also got interest on that.
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    So, if we then add another $1.25
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    so then if we add all of this together,
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    we're going to get $316.25
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    as our answer, we're done.
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    Now, some of you might be saying,
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    "What is this interest thing
    and why are banks paying it?"
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    Well, when you put money in your bank,
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    well, they want you to
    put money in the bank
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    because they can do
    things with that money.
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    They can sometimes lend
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    some of that money out to other people,
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    and when they lend it to other people,
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    they make interest on that
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    so they are essentially paying you
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    to be able to lend your money out.
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    So, that's what interest is.
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    It's the bank paying you
    to keep money with them
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    that they can just use for other things.
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    But that's why it's sometimes
    good to keep it with a bank,
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    because you're not just saving directly
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    the money that you save,
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    but you're actually
    earning extra money on it
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    for someone to be able
    to keep it in the bank,
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    and it's oftentimes convenient and safe
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    to keep it in the bank.
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    Easy to keep track of.
Title:
Finding total money saved | Personal financial literacy | 4th grade math (TX TEKS) | Khan Academy
Description:

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Video Language:
English
Team:
Khan Academy
Duration:
01:33

English subtitles

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