Banks and Profit

Banks and Profit

Purpose of Banks

• Take in deposits

• Keep funds available for withdrawl

• Lend money to people, bussiness and governments

• keep money safe

Banks

• Lend money for all sorts of things

• Houses

• Cars

• Personal loans

Let's look at types of questions you'll see about banks

Multiple Choice

Which situation describes a financial institution as a lender?

• Juliette deposits her paycheck in a savings account at a bank.

• Pauline earns interest each month on the money in her savings account.

• Mitchell borrows money from his bank to buy a car.

• Landry withdraws money from his checking account to purchase some new clothes.

Multiple Choice

Mrs. Smith is saving money to buy a car. At first she kept the money she saved at home, but then her husband persuaded her to deposit the money into an account at the bank. Which of the following is the best reason for Mrs. Smith to deposit the money into an account at the bank?

• The money is safer in the bank than at home.

• She can withdraw her money at any time.

• The bank is near her house.

• She will receive a checkbook in her favorite color.

What is profit?

Profit is the money you make after you claculate your expenses.

The formula for profit is:

income-epenses= profit

Senerio

• Think of opening a lemonade stand

• Your parents give you $10 for supplies

• Your supplies are your expenses

• You sell lots of lemonade and make $20

• That money you made is your income

• You stil have to pay back the money that you spent on supplies

• What's left over is your profit

Problem 1

• What are his expenses?

• What is his income?

• How do we calculate profit?

• 
  

• 
  

• 
  

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Problem 2

• What are the expenses

• What is the income?

• Don't forget the word EACH

Multiple Choice

Zoey sold snacks at a neighborhood pool. The cost of preparing the snacks was $10.29. The money she received from the sale of the snacks was $21.75.

What was Zoey's profit?

• $32.04

• $11.46

• $21.75

• $10.29

Multiple Choice

Donovan made a picnic table to sell for profit. He made a list about what he did:

*price paid for wood: $45

*price paid for nails: $5

*cost of paint: $10

*selling price: $100

What was Donovan's profit from selling the table?

• $55

• $60

• $40

• $50

Multiple Choice

Lyndee bought an old coffee table at a garage sale. She repaired it and updated it, then she sold it for a profit. Here is a list of what Lyndee did:

*price paid for coffee table: $11

*price paid for decals: $3

*cost for paint: $4

*selling price: $38.50

• $18

• $20.50

• $27.50

• $20

Multiple Choice

Latrell bought an old rocking chair at a yard sale for $12. He spent a total of $4.75 on supplies to repair and paint it. He sold it for $38. How much profit did he earn?

• $16.75

• $21.25

• $33.25

• $30.75