First Direct 7% con

eskbanker

Organgrinder said:

I'm a maths teacher and might use this as a test question.

Last Direct advertise a savings rate that pays 7% interest per annum. You are allowed to pay £250 into your account each month. John says at the end of the year he'll have earned £210 in interest. Explain why John is incorrect.

John might have an account with a different interest rate from the one that you have

SaveTheEuro

Not everyone understands compound interest, just as 10 out of every 8 people don’t understand fractions. 

kimwp

Organgrinder said:

Dazed_and_C0nfused said:

Organgrinder said:

I'm a maths teacher and might use this as a test question.

Last Direct advertise a savings rate that pays 7% interest per annum. You are allowed to pay £250 into your account each month. John says at the end of the year he'll have earned £210 in interest. Explain why John is incorrect.

For what age group?

Primary, secondary or FE 🤔

Secondary.

I'm (fairly newly) a volunteer maths tutor with Project Access, currently trying to figure out how mutually exclusive events, independent events, conditional probability, venn diagrams and probability trees do/don't overlap - it's a lot harder to explain why what a pupil is doing isn't right than to just knowing the right steps!! 😫

Bigwheels1111

Organgrinder said:

I'm a maths teacher and might use this as a test question.

Last Direct advertise a savings rate that pays 7% interest per annum. You are allowed to pay £250 into your account each month. John says at the end of the year he'll have earned £210 in interest. Explain why John is incorrect.

£300 a month.

HSBC is £250

Organgrinder

SaveTheEuro said:

Not everyone understands compound interest, just as 10 out of every 8 people don’t understand fractions. 

Indeed. After all there's 3 sorts of maths teacher. Those that can count and those that can't.

friolento

SaveTheEuro said:

Not everyone understands compound interest, just as 10 out of every 8 people don’t understand fractions. 

In the vast majority of Regular Savers, there is no compounding of interest

badger09

SaveTheEuro said:

Not everyone understands compound interest, just as 10 out of every 8 people don’t understand fractions. 

The misunderstanding is not about compound interest. 

It is the misguided belief that any institution will pay interest on money which has not yet been deposited😏

boingy

Organgrinder said:

SaveTheEuro said:

Not everyone understands compound interest, just as 10 out of every 8 people don’t understand fractions. 

Indeed. After all there's 3 sorts of maths teacher. Those that can count and those that can't.

Yep. And 58.4% of statistics are just made up.

MisterMotivated

Organgrinder said:

I'm a maths teacher and might use this as a test question.

Last Direct advertise a savings rate that pays 7% interest per annum. You are allowed to pay £250 into your account each month. John says at the end of the year he'll have earned £210 in interest. Explain why John is incorrect.

John is not incorrect, he's taking into account the interest paid on his feeder account

surreysaver

Bigwheels1111 said:

Every week or two this type thread comes up.

Does nobody read the T&C.

I love the T&C, FD said £136.50 interest, not the £135.38 I got this year.

I call to ask why ?.

Plus speed up transfer of funds.

I got £1.12 credit and funds moved into my account in 8/9 minutes.

Saved waiting 5 plus days for the funds.

Now stashed in my Chip 5.1% easy access isa.

People read, but they don't understand