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Understanding Simple Interest

6 Jun

As always, this lesson is not intended to be professional advice. This is simply lesson material for ESL students in a Managerial Economics and Corporate Finance class. Posted here for their use or for helping other students.

Corporate Value (值)

Financial officers and Managers are extremely responsible for the monetary (货币) goings-on in their companies. As we said before, the Wealth Maximization Rule means that Financial and Corporate Managers are required to maximize (最大化) the profits (收益) for their investors (投资者). 

However, maximizing profits requires in-depth (深入)planning and micro-managing (微观) your funds today while considering (考虑) future profits as well.

There are two types of Value (值) that you should be aware of in Finance and Economics.

The first is called Present Value (现值) and is the value today of something that will increase in value in the future. ExampleWhen we loan someone $1,000 at 10% interest, we know that our $1,000 loan will increase in value in the future.  Present Value = PV.

The second is called Future Value (未来价值) and is the value that the item will have in the future. Future Value = FV.

Interest (利)

I’ll make another post later discussing the many ways to use Present and Future value in your company, but today I just wanted to talk about using them to calculate (计算) “Simple Interest” (单利).  

Usually, when we loan money to someone or invest (投资) our money in something, we do so on the condition that we receive back more money than we put in.  Our corporation is not a charity (慈善机构), we don’t loan you things for free!  The original money we invest is called the Principal (本息).  The extra money we get on top is called the Interest (利).  

Example ~ Company A (a large global corporation) invests $100,000 in a small new business called Company B.  Company B has 10 years to pay it back. But Company A doesn’t do this for free ~ they want to maximize their profits too. That means they have to make some money on this contract (合同).  So they ask Company B to pay an additional 7% per year.   

$100,000 = Principal
7% = Interest

SIMPLE INTEREST (单利)

Problem! ~ 7% of what?  
Answer! ~ It depends 🙂   It depends on how Company A decides to count it.

There are two separate mathematical formulas (数学公式) you can use to figure out the Interest.  The first one is called Simple Interest (单利). Simple Interest says that each payment period Company B is going to pay an additional 7% of the original principal ($100,000).  The formula for Simple Interest is:

I = Interest
P = Present Value
R = Interest Rate
T = Number of Years Involved

Example

Company A (a large global corporation) invests $100,000 in a small new business called Company B.  Company B has 10 years to pay it back. The interest rate is 7% per year.   What is the Total Interest (利) you will pay over 10 Years?

Calculating FUTURE VALUE and PRESENT VALUE using SIMPLE INTEREST

The total interest is of course important to both Company A and Company B, there are two other important numbers that the financial managers of Company A want to know–the Present Value of their money and the Future Value of their money.  

Future Value

FV = Future Value (how much money you will make in total)
PV = Present Value

R = Interest Rate
T = Number of years involved

Using our example above with Company A & B, the Future Value is calculated like this:

That means Company A will make a total of $70,000 if they invest their $100,000 in Company B now. Over 10 years, their $100,000 will change into $170,000. 🙂 We like this plan!

Present Value

Sometimes, for example with bonds (债券), we know the Future Value (how much money will be paid to us in the end). But we don’t know how much money has to be invested (Present Value) to get that future result.  So Present Value is calculated by the formula: 

PV = Present Value 
PV = Future Value

R = Interest Rate
T = Number of years involved

Example: Mary Jane knows that in 4 years, she needs to have a total of $150,000 to pay her college tuition. She has an interest-generating account that gives her a 4% interest rate on everything she puts in. How much money should she invest today (Present Value) in order to have $150,000 in 4 years?

That means that Mary Jane needs to put $129,310.35 in her bank account now in order to get $150,000 in the future. 

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KEY TERMS TO REMEMBER

  1. Value (值)
  2. Present Value (现值)
  3. Future Value (未来价值)
  4. Interest (利)
  5. Simple Interest (单利)
  6. Principal (本息)

FORMULAS TO REMEMBER

Simple Interest

Future Value

Present Value

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When the heart charges in

4 Jun

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Cause Life’s a Mess

3 Jun

“The 50-50-90 rule: Anytime you have a 50-50 chance of getting something right, there’s a 90% probability you’ll get it wrong.”

~ Andy Rooney

Ultimate “Romeo and Juliet” Quiz ~ 80 Questions

3 Jun

Any of my readers good old English majors or part of an English Literature class?  🙂 

I’m teaching “Shakespearean Acting” this semester to a group of students participating in an English speaking competition, and they are required to be familiar with several of William Shakespeare’s plays. Including the timeless classic Romeo and Juliet

Part of our class is a very detailed, in-depth quiz on each of the stories, and I thought I would share them here for High School or College Students. You can use this to quiz your knowledge before an exam! 😛 

Please note, I am not really asking about his writing style, quotes, or themes. This is just a quiz on the facts of what actually happens in the story.  Be aware that questions range in level of difficulty 🙂 If you have other questions to add, please put them in Comments below! 

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Fact Questions

  1. Where is Romeo and Juliet set? (city and country)
  2. In the introduction, the chorus tells us that there are two families fighting in the city. What are their names?
  3. Which Family does Juliet belong to?
  4. Which Family does Romeo belong to?
  5. The two families have been fighting for years and years. Why are they fighting?
  6. What does “star-crossed” mean?
  7. When the story opens, the Prince of Verona, Prince Escalus, is extremely angry with the two families. They have been fighting for years, so why is he particularly angry at them now?
  8. What event sparks the big battle between the two families in the beginning scenes?
  9. Who are Gregory and Sampson?
  10. Benvolio initially tries to stop the fight between the two families. But eventually he joins in. Why does he change and start fighting?
  11. The Prince arrives and gives a harsh warning about the punishment if the two families continue fighting. What is his warning?
  12. Romeo did not come to the fight at the beginning. Where was he?
  13. His parents are worried about Romeo. What is he doing that has them concerned? Be specific
  14. His parents ask someone to go find Romeo and interrogate him as to the reasons for his melancholy. Who is this friend and what is their relationship to Romeo?
  15. Romeo tells us why he is so melancholy at the beginning. What reason does he give and who is the cause?
  16. What is Benvolio’s response to Romeo’s feelings for Rosalind? Does he support the match?
  17. We move scenes now to Juliet’s home, where someone is asked her father for Juliet’s hand in marriage. Who wants to marry Juliet?
  18. Her father does not want to approve the marriage. What is his problem? How old is Juliet?
  19. Her  father finally gives permission, but it comes with two conditions. What are they?
  20. Lady Capulet and the Nurse go to tell Juliet about her engagement. How does Juliet respond? 
  21. The Nurse here tells an old story about Juliet as a little girl. What is that story?
  22. The Capulet’s are hosting an engagement party via a masquerade ball. How do Romeo, Benvolio, and Mercutio learn about the party?
  23. Who is Mercutio. Is he related to Romeo?
  24. That night, the three men are sneaking their way into the party. Why is Mercutio going? Why is Benvolio going? Why is Romeo going?
  25. Mercutio is the cynic of the story. What is his opinion about Romeo’s “true love” for Rosalind? What is his opinion of love and women in general?
  26. Who is Tybalt? How is he kin to Juliet?
  27. When they sneak into the party, Tybalt recognizes Romeo despite his mask. Tybalt wants to throw Romeo out, but someone stops him. Who and what 2 reasons do they give?
  28. How does Tybalt respond?
  29. Why is this moment in the story important?
  30. How do Romeo and Juliet actually meet?
  31. What is so surprising about their first meeting with one another?
  32. While watching her, Romeo says he wished he were something Juliet is wearing. What is it?
  33. Does Romeo  talk to Rosalind at the party?
  34. After the party, Romeo sneaks away from his friends and hides in Juliet’s home because he is “too in love to leave.” Where does he go?
  35. Romeo sees Juliet and hides while listening to her talk to herself about how she wishes things would go. What is Juliet wanting?
  36. Romeo comes out of hiding to confess his love to Juliet. Why?
  37. Romeo and Juliet makes some exciting plans for the next day. What do they plan to do?
  38. The Friar is not initially excited about Romeo’s feelings for Juliet. Why does not not believe their love is real?
  39. Romeo asks the Friar to marry them. Why does the Friar agree?
  40. Romeo meets up with Juliet’s Nurse to tell her what he needs Juliet to do. The Nurse flatters him by comparing the what flower that Juliet speaks of so often?
  41. Juliet creates a fake excuse for going to the church and then secretly marries Romeo. What is her excuse?
  42. Who knows about the wedding besides Romeo and Juliet?
  43. We move to Mercutio and Benvolio out walking. Mercutio is laughing at Benvolio, who he says is a walking contradiction. What does he say is so funny about Benvolio?
  44. Why are Mercutio and Benvolio annoyed at Romeo?
  45. Benvolio brings bad news about Tybalt that he shares with Mercutio. What has Tybalt done?
  46. Romeo comes but refuses to fight with Tybalt. Why?
  47. Mercutio is furious at Romeo’s sudden “friendliness” to Tybalt. It’s more than just a feeling of betrayed friends. What is the problem? To understand this answer, you need to have some background into the cultural history. 
  48. Be specific. Exactly what happens when Mercutio dies?
  49. How does Romeo respond when Mercutio dies? What does he do?
  50. The Prince arrives, and learns about this new fight. Earlier he named the punishment for anyone fighting in his town. But now, for Romeo, he changes his mind. Why does the Prince change his punishment?
  51. What exactly is Romeo’s Punishment
  52. How does Romeo respond to his Punishment?
  53. How does Juliet respond initially when she hears the news about Tybalt?
  54. An important moment in the story, Juliet and her Nurse have a fight here. What is the fight about?
  55. Friar Laurence has a plan to help Romeo out of trouble after Tybalt and Mercutio die. What does he tell Romeo to do?
  56. The night after they are married, Romeo sneaks into Juliet’s room to see her before he leaves town. How does he get in to her room?
  57. Juliet’s parents and her fiancee decide to move the wedding closer. How much time is there until the wedding now?
  58. Are Juliet’s mother and nurse excited or sad about the wedding?
  59. How does Juliet respond? 
  60. After Romeo is banished and her marriage is moved up, Juliet sneaks out to seek Friar Laurence’s advice. What excuse does she give her parents for why she goes to the church?
  61. When Juliet goes to meet Friar Laurence for advice, she runs into someone else in the church. Who does she meet and what do they say to one another?
  62. What is Friar Laurence’s Plan? What exactly is supposed to happen?
  63. Who finds Juliet’s body the next morning?
  64. The day Juliet dies was a special day for her. What big event was supposed to happen?
  65. After she meets Friar Laurence and gets the sleeping potion, Juliet goes home. What does she tell her parents she would do now?
  66. Why do her parents think Juliet died and who do they blame?
  67. In Act 5, Romeo is banished but we learn he has been having a bad dream recently. He is concerned. What happens in his dream?
  68. Why did Friar John fail in delivering the letter to Romeo telling him Juliet was still alive?
  69. Friar John was supposed to tell Romeo that Juliet was alive, but he fails. Instead someone else comes to Romeo and tells him Juliet is dead. Who tells Romeo that Juliet is dead?
  70. Romeo buys some illegal poison. Where did he get it and why did they sell it to him?
  71. When Romeo goes to visit the tomb, someone else is already there. Who was it?
  72. This visit thinks Romeo has come to the tomb for dastardly reasons. What does he/she think Romeo plans to do at Juliet’s tomb?
  73. In the end, what happens to Count Paris? 
  74. How does Romeo die?
  75.  Who is alive and present when Juliet wakes up from her sleep of the dead?
  76. How exactly does Juliet die?
  77. In the end, who is left to tell the prince about what happened?
  78. When he arrives, Lord Montague says something terrible has happened to Romeo’s mother. What is it?
  79. How are the parents going to honor their children’s deaths?
  80. At the end, the Prince says everyone has been punished. How was He Punished?

Lovely Language ~ Chinese “Laoxiang”

2 Jun

Fun Chinese Words ~ 老乡 (Laoxiang) has no exact translation into English. In Chinese, it expresses the concept of someone who comes from the same hometown as you. More specifically, someone who, upon seeing them again, brings back happy, cherished memories of good times as a child. A person who gives you nostalgia.

“Sarang” (Dear Love) by The One

31 May

My Students ROCK!

25 May

I just absolutely love my students so much. Spent the night talking with a couple of them and had a wonderful time. The first gave me the wonderfully thought out present of a small piano music box, with a photo of my mom and me inside and a small engraving “With Love” from her. Isn’t that wonderful? She knew I loved Piano and hunted two days to buy it for me. I just adore her. ❤ The other was a wonderful young man I’m teaching now. He has traveled to all but one of the Chinese provinces with his friends and just got a passport to check out Russia. 🙂 He has a new idea about how to create green energy that sounds fascinating and I really wish him the best! His health isn’t great though (His heart is bad), so I would ask that you all pray for him. We spoke about his hopes, dreams, and how he is trying so hard to do his best for his family. A real encouragement and just inspiration for me. ❤

Oh, and did I mention that another girl brought my COOKIE DOUGH ICE CREAM!  Honest-to-God Cookie Dough Ice Cream. REAL AMERICAN ICE CREAM. Since apparently many of the Chinese are lactose intolerant, they make their ice cream from water instead of milk. Meaning it lacks the good old flavor. Now I have some actually delicious ice cream!  I am so wonderfully blessed by God. Best Job Ever!!

Involuntary Escargot

22 May

So Tired!

17 May

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Do I look as crazy and tired as I feel? Up till 5am and awake again at 7 am two nights in a row does not a gorgeous Olivia make 😜☕ I even drank my first cappacino to stay awake! Translated a project from Chinese to English for a company developing an ecological cooperation program with the Middle East as a joint effort to combat desertification.

So cool! But it was a doozy of a project including the Presentation, the 20+ page Project Handbook, and several addendum papers. Worked around the clock in between classes for about 48 hours going paragraph by paragraph. Fascinating topic, but I am glad it’s done! My Chinese helpers did an excellent job, and the finished result looks amazing! Especially since we were working with such technical vocabulary! Proud of a Translation well done.

China Fashion- Medieval Chinese Collaboration

16 May

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Saw this beauty at the local Target substitute. Actually has potential!