Banking Blog Post

Bank Policy 
In the past few math classes we have been learning about bank accounts. Traditionally, there are two bank accounts: Checking and savings account. There are also other special accounts that bank offer as a 'super saver'. Within these banks there are two different interests, compound and simple. A compounded interest is when the interest rate is constantly being added on to a new amount.  On the other hand, there is simple interest where the interest rate is constantly added onto the original amount.

Compound vs. Simple
In my opinion, I think compounded interest is a lot better, but in some scenarios simple interest can be a bit better. For example, we watched a video where a man who lived for a thousand years wanted to check  on his bank account. He originally had 20 cents, but with an interest of 2.25% it grew to a larger amount. We weren't told of the new amount, and we had to figure it between ourselves. We originally found the simple interest amount which turned out to be $20. We thought this was a bit low, so we then tried the compounded interest. We then calculated the compounded interest and found that amount was around $4,000,000,000 dollars. There is a huge difference between these two and though, we don't leave our money in the bank for thousands of years, I believe it would still make a difference. Furthermore, I believe that if I were to invest in a bank, I would want to have a compounded interest, as well as a high rate. Moreover, I would also like to keep about a thousand dollars in the bank for emergencies and never touch it. As the years go by, it will grow to a larger amount, which will benefit me.

Citations 
Fox in Flats. "Piggy Bank - Fox In Flats." Fox In Flats RSS. N.p., n.d. Web. 29 Sept. 2014.