Mathematics SBA

Topic: A comparative analysis of the interest rates charged by commercial banks on loans in Berbice,
Guyana

Objectives:

1. To identify the types of interest charged by the commercial banks in Berbice Guyana

2. To compare the interest rates charged on loans by commercial banks Berbice, Guyana.

3. To determine which commercial bank offers the lowest loan interest rates.

4. To identify the factors that influence the interest rates charged by commercial banks in Berbice,
Guyana.

5. To identify whether or not the interest rates vary based on the types of loans offer by commercial
banks in Berbice Guyana

Introduction

Some CSEC researchers living in Berbice, Guyana, have noticed that many people in our
community discuss bank loans and how different banks charge varying interest rates. This
sparked curiosity among the young minds about how these rates affect people's choices and their
ability to repay loans. Through this Mathematics SBA, they will compare the interest rates that
commercial banks in Berbice charge on loans. They want to understand if the rates influence
which bank people choose and how different calculation methods change the total amount
someone has to repay

By conducting research to gather information they hope to see if there are any patterns in how
banks have been setting their lending rates. This investigation will help them apply the
mathematical concepts they've learned about interest calculations in real-world situations. It will
also help the researchers to understand why some people prefer certain banks over others in the
region. As researchers who will soon be adults and might need to take loans in the future, they
believe this knowledge will be very useful in their lives
Methods of collecting data- how you gather data

The researchers carried out a survey by interviewing bank managers from several commercial
banks in Berbice, Guyana. They visited the banks on specific dates to gather information about
loan interest rates. Along with conducting interviews, they used data collection sheets to record
details about the various methods of calculating interest, such as simple interest, compound
interest, the reducing balance method, and the straight-line method.

During these interviews, the researchers asked bank managers questions about their interest rates,
the methods they use for calculating interest, and how these methods affect the total repayment
amount for customers. Essentially, it was a one-on-one conversation between the researchers and
the bank representatives aimed at collecting accurate information for the students' Mathematics
SBA project.

By gathering this information, the researchers zhoped to understand better how interest
calculation methods vary across different banks and what factors influence the rates. As CSEC
students, they believed this method would give them reliable data to analyze and compare the
lending practices of the banks in the region.
 Questionnaire
1. What is your age?

 18 – 25
 26 – 35
 36 – 45
 46 and above

2. What is your gender?

 Male
 Female
 Other

3. What is your current employment status?

 Employed
 Self – Employed
 Unemployed
 Retired
 Student

4. What is your monthly income range?

 Less than GYD 50, 000

5. Have you taken a loan in the past five (5) years?

 Yes
 No

6. Which commercial bank fo you most frequently engage with for loan-related services?

 Republic Bank
 Guyana Bank for Trade & Industry Ltd. (GBTI)
 Scotiabank
 Citizens Bank
  Other

7. What type of loan did you apply for or inquire about at the bank?

 Personal Loan
 Mortgage
 Business Loan
 Other

8. What is the current interest rate you were offered for the loan type selected above?

…………………………………………………………………………………………………..

…………………………………………………………………………………………………..

9. Does your bank offer fixed or variable interest rates on loans?

 Fixed
 Variable
 Both

10. How often are you required to make loan repayments?

 Monthly
 Quarterly
 Annually
 Other

11. Do you believe the type of loan affects the interest rate you are charged?

 Yes
 No

12. Which method does your bank use to calculate loan interest?

 Simple Interest
 Compound Interest
 Reducing Balance
 Straight-Line Method
 Other
13. Do you feel that the interest rates offered by your bank are competitive compared to other
banks in Berbice?

 Yes
 No
 Not Sure

14. Have you ever switched banks due to better loan terms or interest rates elsewhere?

 Yes
 No

15. What factor influences your decision when choosing a bank for a loan?

…………………………………………………………………………………………………..

…………………………………………………………………………………………………..

16. How do you think interest rates affect your ability to repay loans?

…………………………………………………………………………………………………..

…………………………………………………………………………………………………..

17. Do you believe that loan interest rates in Berbice have increased or decreased over the past
five (5) years?

 Increased
 Decreased
 Stayed the Same
 Not Sure

18. How satisfied are you with the transparency of interest rate information provided by banks in
Berbice?

 Very Satisfied
 Satisfied
 Neutral
 Dissatisfied
 Very Dissatisfied
19. What suggestion would you make for improving transparency regarding interest rates in
Berbice’s commercial banks?

…………………………………………………………………………………………………

…………………………………………………………………………………………………

20. Which commercial bank do you believe offers the most favourable loan terms in Berbice?

…………………………………………………………………………………………………..

…………………………………………………………………………………………………..