This video is so great! I am so glad I found it. Core maths is a new subject so I've been finding it difficult to find videos on it so this is just perfect. Thank you so much!
Just looking up AER as M and S bank are offering 5% AER on savings account in which you can only transfer £250 per month from current account to savings. They said you would generate £81 interest over year but I thought it would be more because 5% of £3000 is £150 but I see now they don't pay 5% interest per month or compound it but rather break down the interest over 12 months. i.e 5% divided by 12 = 0.41666667%. So am I correct in thinking Im getting approximately 0.42% monthly interest on £250 that is compounded each month??
So as it's every 3 months, n would have to be 4. The fact that the money is in the account for only 9 months is neither here nor there. The AER is used to compare saving accounts' annual rate, so even though the money in the example is only in the savings account for 3 of the four months, the AER surely shows what it would be for a year? Otherwise if wouldn't be an annual equivalent rate and you wouldn't be able to compare like for like with another savings account, that paid interest, say every 6 months. If someone paid into an account for half a year and the account paid out interest every 6 months, the AER calculation would still have to have n=2.
But the AER is used to compare like for like over an annual period. The question's not asking how much they would have after 9 months, it's asking for the AER for the savings account.
Just wondering what program you are using for this video? As a teacher I’d love to find a programme where I can put values into typed formula like that? Thanks
This video is so great! I am so glad I found it. Core maths is a new subject so I've been finding it difficult to find videos on it so this is just perfect. Thank you so much!
wow thanks you so so much!!
not me finding this amazing teacher 2 days before my exam
lmao, hello dalma
@@ebonyhayhurst2548lmfaooo, heyy ebony
my exam definitely isn’t tomorrow..& i’ve definitely done revision before this…
At 4:07, am i mistaken in thinking a higher AER is a good thing? Because it's said that Halifax is the better option even though it has the lowest AER
not me cramming a day before my exam
Same, barely done any revision
I’m cramming ON the day 😭
@@ramengurung9913 nahhh 💀 good luck mate
@@Imakidormaybeasquid thanks 😭
Just looking up AER as M and S bank are offering 5% AER on savings account in which you can only transfer £250 per month from current account to savings. They said you would generate £81 interest over year but I thought it would be more because 5% of £3000 is £150 but I see now they don't pay 5% interest per month or compound it but rather break down the interest over 12 months. i.e 5% divided by 12 = 0.41666667%.
So am I correct in thinking Im getting approximately 0.42% monthly interest on £250 that is compounded each month??
very helpful video, really needed that. keep it up and thank you
Shouldn’t the interest rate at 8:47 be 0.5 not 0.02
I think it should be 0.005, as that is 0.5% as a decimal
0.5 is the interest rate for 3 months but the interest is supposed to be yearly not months or whatever
The exam is totally nOt next week and I’m cramming paper 1 ....
dude it's tomorrow and I'm cramming TODAY
Fuck fuck duck duck fuck
its easy though
@@wagwaan7058 if its so easy why are you watching tutorial videos a day before the exam
Jack Cleary no harm, in checking to be sure
My exam is in 12 min
Plug
sfe
Pleasseee do more core maths videos plsss
In the first example, i should be 0.0121 instead of 0.0242... minute: 5
yeah i was confused about this i dont understand why he doubled the multiplier ive never done that before
@@AlfieDyer because it was for 6 months and there are 12 months in a year meaning we must double. i'm about 2 years late 😂.
nicely explained . I have a resit tomorrow and this helped me clarify what I learnt
1:08
8:53
help im doing this test tmmr 💀
Today for me
@@jeffispro2567 Same. Good luck!
@@Eleanor-si3qd how’d it go?
When calculating the AER at 7:40 shouldn't the value of n be 4, rather than 3? Seeing as there's four 3-month periods in a year?
it says the money is deposited into an account for 9 months not a year so there will only be 3 compounding periods
But shouldn't the AER be representative of a year? Hence the ability to compare saving accounts?
n - is the number of times a year interest is paid - hope this helps
So as it's every 3 months, n would have to be 4. The fact that the money is in the account for only 9 months is neither here nor there. The AER is used to compare saving accounts' annual rate, so even though the money in the example is only in the savings account for 3 of the four months, the AER surely shows what it would be for a year? Otherwise if wouldn't be an annual equivalent rate and you wouldn't be able to compare like for like with another savings account, that paid interest, say every 6 months. If someone paid into an account for half a year and the account paid out interest every 6 months, the AER calculation would still have to have n=2.
But the AER is used to compare like for like over an annual period. The question's not asking how much they would have after 9 months, it's asking for the AER for the savings account.
Thank you so much!! Feel confident for my exam!
Just wondering what program you are using for this video? As a teacher I’d love to find a programme where I can put values into typed formula like that? Thanks
Very low tech I am afraid - its just powerpoint and something called workspace