Web Application Chapter 9 page 355

Manually calculating interest, whether it is simple or compound, can be a time-consuming job. Although calculators and computer software have simplified interest computation, it is still important to realize how interest is computed. The Internet is also available to assist in calculations. For this Web Application, the Royal Bank of Canada Web site, which can be found at www.royalbank.com, will serve as the learning tool. There are two areas of interest on this site: Personal Savings Calculator and Compound Interest Calculator.

Point your browser to the Royal Bank of Canada's homepage, www.royalbank.com, and select Personal Investments first then select Your Money Matters. On the Your Money Matters page, select calculators or type in www.royalbank.com/yourmoneymatters/calculators.html.

1. Select Personal Savings Calculator. On this interactive page, enter the following combinations of personal savings information and find the expected yearly savings for each amount.

Gross Salary	Pay Frequency	Saving Goal	Yearly Savings
$250.00	Weekly	10%	?
$1200.00	Monthly	10%	?
$180.00	Weekly	5%	?

2. Select Compound Interest Calculator from www.royalbank.com/yourmoneymatters/calculators.html. As was done in question 1, enter the following combinations of saving information and find the expected value of savings after five years.

Amount	Average Estimated Rate of Return	Invest for 5 years	Value of Savings
$468.00	5%	5 years	?
$1300.00	10%	5 years	?
$1400.00	10%	5 years	?

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