# Lesson 8 paragaph 2.1 part 2

Welcome T3!

Economics: lesson eight

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Slide 1: Tekstslide
EconomieMiddelbare schoolhavoLeerjaar 3

In deze les zitten 11 slides, met tekstslides.

Lesduur is: 60 min

## Onderdelen in deze les

Welcome T3!

Economics: lesson eight

#### Slide 2 -Tekstslide

Plan for today
1. Start of the lesson with a meme

2. Check: Lesson goals and the homework

3. Explanation: chapter 2 paragraph 2.1 part 2

4. Time to do the homework

#### Slide 3 -Tekstslide

Chapter 2 Dealing with money
Paragraph 2.1 Saving and investing?

#### Slide 4 -Tekstslide

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

#### Slide 5 -Tekstslide

Check the homework
1, 2, 6, 7, 8, 9 and 13

Together:
7 --> calculating with factors
9 --> calculating with more than 100%

#### Slide 6 -Tekstslide

Practice compound interest
nn

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

#### Slide 7 -Tekstslide

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)

#### Slide 8 -Tekstslide

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

#### Slide 9 -Tekstslide

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

#### Slide 10 -Tekstslide

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