5 Thing I learned This Year
200,000 1,200 1,000 200 199,800
199,800 1,200 999 201 199,599
199,599 1,200 998 202 199,397
- The different types of economies and how they affect the society that uses them. I learned about how there are three types of economies; command, market, and traditional. The difference between these three economies is that a command market is usually present in socialist, meaning it is controlled by the government. A market economy is when an individual's own economic recources and markets decide how money is distributed. A traditional economy consists of customs and cutlural traditions. There is, however, a possiblity of mixtures of two of these ecomonies. For example, the United States is a mixture between a market economy and a command economy.
- How tax percentages work and the reasons taxes are taken out of one's paycheck. Tax percentages work to calculate how much one owes in taxes. The way this is calculated is you divide the amont of money owed in taxes by the amount of income one recieves. An example of this would be if someone made $50,000 a year and owes $13,000 in taxes. 50,000/13,000 is .26, which means that one would one would owe 26% on every paycheck. This benifits me for my future so that I will know how to calculate my own tax percentages.
- What the relationship is between risk and return and how it can benefit you. The releationship between risk and return is that if you take a higher risk, you can recieve a higher return. It is dangerous because in order to get a high return, you must risk a lot. This is useful in life because it can be used in more things than just money situations, though it is very useful in money situations.
- The three types of savings accounts, regualar, CD, and moneymarket, and what the differences between these are. A regular account can also be known as a passbook account and it has a high liquidity and return rates are low. A regular account is usually for day to day use. A CD acount is short for certificate deposite and it is where you promise to keep your money in the bank for a certain amount of time. Liquidity is low, but return rate is higher. FInally, a moneymarket account has a high interest rate and it takes a lot of money to start it up, usually more than $10,000.
- How to calculate intrest. calculating interest is useful when buying a house or a car. The formula for this is principal x rate x time. An example of this would be if someone was buying a house for $200,000 and there's a 6% APR (annual percentage rate(interest)) with a payment of $1,200 a month. Here is an example of how to calculate this:
200,000 1,200 1,000 200 199,800
199,800 1,200 999 201 199,599
199,599 1,200 998 202 199,397