Brad purchased a house for $65000. To pay for the house Brad took out a 30 year mortgage and pays the bank a yearly interest fee of 12.1%. How much interest did he pay his first year?
What is $7,865.00?
100
A mutual fund that was designed to reduce fees by investing in stocks and bonds that make up an index
What is an Index fund?
100
Reduces risk by spreading investment money among a wide array of investment tools.
What is Portfolio diversification?
100
Created when a company combines the funds of many different investors and then invests that money in a diversified portfolio of stocks and bonds.
What is Mutual Fund?
100
Have the potential for significant fluctuations in return over a short period of time.
What is Speculative investments?
200
Brad deposited $12,000 in an account that pays 4.2% interest each year. The amount of interest is paid at the end of each year. How much will the account have after 3 years?
What is a $13,576.40?
200
A form of lending to a company or the government (city, state, or federal)
What is a Bond?
200
The possibility that an investment will fail to pay the expected return or fail to pay a return at all.
What is an Investment risk?
200
The rise in the general level of prices.
What is Inflation?
200
These types of investments eliminate, reduce, defer, or adjust the current year tax liability.
What is Tax-sheltered investments?
300
How many years would it take my stock to double if I am getting 11.3%?
What is 6.4 years.
300
The uncertainty regarding the outcome of a situation or event?
What is Risk?
300
The purchase of assets with the goal of increasing future income.
What is investing?
300
The total return on an investment expressed as a percentage of the amount of money invested.
What is a Rate of Return?
300
The specified time in the future when the principal amount of the bond is repaid to the bond holder.
What is the Maturity date?
400
Kari would like to make a down payment on a house. She currently haws $7000. What interest rate must Kari receive for her investment in order to double it in 7 years?
What is 10.3%?
400
Albert deposited $70,000 at a bank that pays 10% interest. Michael deposited $64000 at a bank that pays 16% interest. Who will receive more interest in a year?
Who is Michael?
400
The current price that a buyer is willing to pay for stock?
What is the Market Price?
400
Allows a person to easily calculate when the future value of an investment will double the principal amount.
What is the Rule of 72?
400
The owner of a stock or share?
What is a Stockholder or a Shareholder?
500
Matt invested $2000 into a stock of his choice. After two years, he got a check for $600 in dividends. After another year he sold his stock for $2400. What is Matt's rate of return?
What is 50%.
500
Olivia saved $500 in a Certificate of Deposit for six months. At the end of the six months she had a return of $50. What is Olivia's rate of return.
What is 10%.
500
A share of ownership in a company.
What is Stock?
500
A group of similar stocks and bonds.
What is an Index?
500
Illustrates the trade-offs between risk and return for a number of saving, and investing tools.