After the diagnostic exam on Monday Aug. 29th, you may get a head-start reading this article.
Copies will also be available in class.
After reading, in your notes, respond to the following questions:
1) In your own words, explain what the "interest" on a loan is.
2) In the second paragraph, it says that 1,000 French Francs equaled $4,550 Dollars.
Therefore, the exchange rate was:
1 French Franc = __________ Dollars. Show your work.
3) The third paragraph describes the "stipulations" for the loan - that the craftsmen be married, with completed apprenticeships, and having two people who could vouch for them.
Why might Benjamin Franklin have included these stipulations? What purpose do they serve?
4) In 1789, $4,550 was worth a lot of money. In today's dollars, that amount is really like $108,000.
Therefore, an American Dollar in 1789 is worth about _________ Dollars today.
5) What can we learn from this? How can we make the most out of our future savings and interest?
On the negative side - how can the power of compound interest hurt us if we have credit cards?
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