Last Year on the Green · January: Six Per Cent
The idea: interest is earned only on the money that is in, for as long as it stays in; match the account to when you need the money.
Read it
Who is in this book
- Cyrus The cost of borrowing is the total you pay back, not the size of each payment from LedgerQuest
- Danya a child of the Green Asks "how do we know?"
- Marcus A budget is a plan for what the money is for, before it arrives from LedgerQuest
- Devon Every yes costs the next-best thing you could have done with that time or money from LedgerQuest
- Tara a child of the Green Listens longest, speaks last
Every recurring character has a short tune, so you can tell who is on stage before a word is said. The tunes play only when you tap, and the Reading Access sound switch turns them off.
The Honest Page
Which parts of this story are true, stretched or made up?
True
- Interest on a savings account is paid on the balance while it is in the account, so money paid in during the year earns interest only from the day it arrives. A rate quoted per year (such as an annual equivalent rate) is the yearly figure, not what a year of monthly payments will earn. Source
- Twelve monthly payments of £127.50 make £1,530 and 78 payment-months; 6% a year on that is about £49.73, while 6% of the whole £1,530 would be £91.80. Eight payments make £1,020 and 36 payment-months; 1.5% on that is about £5.74 and 4.5% is about £17.21.
- An annual percentage yield, called an annual equivalent rate in the United Kingdom, states the interest an account would pay over a year, so that accounts can be compared. Source
Stretched
- In the case, interest is worked out month by month as simple interest. What we simplified: Real accounts usually work interest out each day and add it monthly or yearly, so the true figures differ by a few pence. The rates, the fixed term and the early-closing rule vary between accounts; read the terms of the one you are offered.
Made up
- The Green Building Society, its rates and leaflet, the clerk, Hana's plan and Tara's savings are made up. The idea that interest is earned only on money while it is in is real.
Tara’s sentence
The case stops where Tara speaks. Write the sentence you would have said. It stays on this device.
Kept.
Your sentence lives on this device. Nothing is sent anywhere.
Ring the hammer for someone
Pick this book for someone younger. The link carries only the book, and it will wait for them on the Green.