These interactive courses will familiarize you with calculations relating to share accounts and other deposit accounts. All credit union employees need good math skills as a core competency.

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Following are the learning objectives for each course:

Basic Math Definitions:

• Convert percentages to decimals
• Calculate annual rates of return and annualized rates of return
• Define basis point and determine the number of basis points in a dividend rate change
• Explain the difference between accrued and credited dividends
• Define compounding, and explain how it can increase the amount earned on a share account
• Calculate the average daily balance of a share account

Share Account Dividends:

• Determine end-of-day balances on accounts
• Calculate daily balance dividends and average daily balance dividends
• Calculate dividend rates for periods of different lengths, when given an annual dividend rate
• Explain factors that cause dividend earnings to fluctuate from one period to another
• Round dividend amounts and rates

Account Balances and Dividend Calculations:

• Explain and calculate dividends for accounts with minimum balance requirements
• Define tiered-rate account
• Explain the difference between tier methods A and B and how that difference affects dividends
• Calculate dividends for accounts with tiered rates
• Define and explain how to calculate dividends on stepped-rate accounts

Dividend Compounding and Annual Percentage Yield (APY):

• Define and calculate annual percentage yield (APY) and state the basic formula for open-end and 365-day accounts
• Explain how members can use APYs to compare yields on different accounts
• Describe the effects of low and high dividend rates on APY calculations
• Explain differences in disclosing APYs on accounts with minimum balance requirements to earn dividends, tiered-rate accounts, stepped-rate accounts, and certificates
• Define annual percentage yield earned (APYE) and explain why the APYE for a member’s account might be higher or lower than the account’s APY

Helping Members Reach Savings Goals:

• Calculate the approximate doubling of an investment by using the Rule of 72s
• Calculate the future value of an initial deposit by using a future value table
• Calculate the amount of an initial deposit to achieve a future value
• Calculate growth of a continuing series of annual deposits by using a future value of annuity (FVA) table
• Calculate how much to deposit annually to achieve a future value