Caribbean Secondary Education Council
(CSEC)
Mathematics SBA
Group Members:
Name of School:
Subject: Mathematics
Territory: Guyana
Name of Teacher:
Consumer
Arithmetic
Mathematics School Based Assessment
Group members
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CONTENT
Project Title……………………………………………….................................PG 3
Introduction………………………………………………………………………………PG 3
Method of Data Collection…………………………………… ………………….PG 4
Presentation of Data………………………………………………………………….PG 5-8
Analysis of Data………………………………………………………………………. PG 9-10
Discussion of Findings……………………………………………………………PG 11
Conclusion………………………………………………...............................PG 12
Appendix of Diagrams……………………………………………………………….PG 13-14
References…………………………………………………………………………….PG 15
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Title: A comparative analysis of loan interest between four banks of Guyana.
Introduction: The parents of a particular researcher recently decided to buy a
house valued at 8 million GYD, but realized that they did not have sufficient
money. Deciding that they needed a loan they began looking at interest plans
from the top banks. An interest plan refers to the layout of everything that will
come with your loan e.g. interest rates, equity contribution and time period etc.
An interest rate is the amount of interest due per period, as a proportion of the
amount lent, deposited or borrowed (called the principal sum). Equity
contribution refers to the down payment i.e. a lump sum made on your first
payment to secure your house. This down payment is the amount of money you
spend upfront to purchase a home and is typically combined with a home loan to
fulfill the total purchase price of a home. As such, the objectives of this SBA are:
1) To find the bank with the best interest plan according to the amount of the
loan
2) To determine which plan best fits the family’s monthly income
3) To calculate how much money the family will end up paying altogether
4) To calculate the down payment
The researchers intend to seek out the best interest plan and then calculate each
monthly installment as per each bank’s plan. They will then compare the data and
calculate and compare the down payments.
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Method of Data Collection:
The researchers visited the bank websites to collect information. They then went
into the banks to check with the managers that the information has been updated
and that it is correct. The researchers then found out the financial information of
both parents with taxes, household expenses, etc. The results were then
recorded. The data was then compared and analyzed.
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Presentation of Data: Table 1.1 below shows the interest & rates of each bank
per annum as well as equity contribution/down payment.
`Name of Bank
Interest Rate
Contribution
Equity
Republic
7.45%
Bank
10%
Trading &
Industry
Guyana
Bank of
20%
9%
Bank of
Baroda
10%
20%
Citizens
Bank
10%
10%
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Guyana Bank of
Citizens Bank Bank of Baroda Trading and Republic Bank Name of Bank
Industry
$7,200,000.00 $6,400,000.00 $5,760,000.00 $5,364,000.00 Total Interest
and full repayment after they were calculated.
$800,000.00 $1,600,000.00 $1,600,000.00 $800,000.00 Down
payment
$14,400,000.00 $12,800,000.00 $12,160,000.00 $12,564,000.00 Repayment
Table 1.2 below shows the banks in alignment with their interest, down payments
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The bar graph shows the financial plans per each bank, this includes interest,
down payment and total repayment.
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The double line graph below shows the interest payable for each bank as well as
the total repayment.
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Analysis of Data
The interest rates had a range of 2.55%. This allowed for the interest to fall
between $8,000,000 and $5,096,000. The rates held an average of 9.11% giving
an average interest of $7,290,000. The interest was calculated using the formula
SI = Principle x Rate x Time ÷ 100.
The table below shows the difference between the chosen plan and the others.
Bank Names Rates Interest Difference
Republic Bank 7.45% $ 5,364,000.00 0
Guyana Bank for Trading 9% $5,760,000.00 $396,000.00
& Industry
Bank of Baroda 10% $ 6,400,000.00 $ 1,036,000.00
Citizens Bank 10% $ 7,200,000.00 $ 1,836,000.00
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The differences in interest were close to $400,000 to over $1 million. The down
payment had a range of $800,000. Down payment is simply calculated as x
percent of the loan. Down payment helps lower the monthly payment and total
interest payable. Due to sizeable down payments the loans were not calculated
out of the original principal amount but the down payment subtracted from the
loan. The new principal sum was added to the total interest to give the total
repayment. Citizen’s Bank had the worst financial plan.
The line graph highlights the worst and best plan. Whereas Republic Bank carries
the lowest interest rates, Guyana Bank for Trade & Industry (GBTI), sizeable down
payment allows for a smaller total repayment.
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Discussion of Findings
The best suitable loan plan for the family was the one offered by Republic Bank at
7.45%. With this, the family would pay back $12,564,000 in monthly installments
of $104,000. Although, the interest rates show little difference the interest has a
significant range in numbers. A 2.55 range in percent caused $1,836,000
difference in amount. While GBTI essentially has smaller monthly installments and
an overall smaller total repayment the interest rate is higher causing you to repay
more in interest.
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Conclusion
The Middle class family of four wanted to purchase a home but lacked the finance
to do so, they decided to apply for a home loan, and we the group conducted an
investigation of four banks in Guyana, being, Republic Bank, GBTI, Citizens Bank
and Bank of Baroda to determine which of these Banks provide the best interest
rate for a home loan to suit the family. Based upon the data collected from the
investigation, it was observed that Republic Bank provides the most suitable
interest rate of 7.45% per annum, and as such they were selected by the family.
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Appendix of Diagrams
Column Chart
Line Graph
Tables
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References:
https://www.csecmathtutor.com/
www.gbtibank.com/loans
/www.citizensbankgy.com
https://bankofbaroda.gy › products
Personal Loans – Bank of Baroda (Guyana) Inc.
https://republicguyana.com › personal
Make It Happen Loans | Republic Bank
https://www.bankofguyana.org.gy › ...
Loans - Bank of Guyana
https://www.scotiabank.com › ...
Scotiabank Guyana Loan Selector Tool - Scotiabank Global Site
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