IXL | Compare savings options

Hannah is saving for season passes to Splash and Slide Water Park. She can keep her money at home, or she can put it in a savings account at a bank. Which of these is true?

An advantage of keeping the money in a savings account is that Hannah won't lose her money.

An advantage of keeping the money at home is that Hannah will earn interest on her money.

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Learn with an example

question

Camilla wants to buy an electric scooter that costs $630. She doesn't have any savings now, so she thinks of two plans to save money for the scooter.

Plan A: Save $12 each week for 50 weeks. Put the money in a savings account that will pay a total of $4 in interest.
Plan B: Save $14 each week for 45 weeks. Put the money in a savings account that will pay a total of $3 in interest.

Which plan should Camilla follow to save enough money to buy the scooter?

Plan A

Plan B

key idea

The money you keep in a savings account earns interest. Interest is additional money you can earn for allowing the bank to use your money.

solution

Camilla wants to buy an electric scooter that costs $630. Find which plan will save enough money.

Find how much money Camilla will save if she follows Plan A.

Plan A is to save $12 each week for 50 weeks and earn $4 interest. First, multiply $12 by 50.

600

Then, add $4 interest.

600

604

Camilla will only save $604 if she follows Plan A. That is not enough money to buy the scooter.

Find how much money Camilla will save if she follows Plan B.

Plan B is to save $14 each week for 45 weeks and earn $3 interest. First, multiply $14 by 45.

630

Then, add $3 interest.

630

633

Camilla will save $633 if she follows Plan B. That is enough money to buy the scooter.

Camilla should follow Plan

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