Math
If you invest $300 and get a 6% rate of return compounded weekly, how much money will you have in 19 years?
$937.41
You have a $875 bond that pays 2% interest, compounded monthly. How much will it be worth in 25 years?
$1442.03
You are a part owner of the company if you own _____.
Stock
If an investment has no risk at all (like a savings account), what type of return can you expect?
Stella puts $1500 in her savings account and gets 3.1% interest, compounded monthly. How much money will she have in 8 years?
$1921.57
You have a $480 bond that pays 9% interest, compounded monthly. How much will it be worth in 13 years?
$1539.82
If you own stock, what is it called when the company pays you out some percentage of the profits?
dividends
If an investment had 20% returns, would it be considered high risk or low risk?
HIGH RISK
Julian has $1800 in an account that earns 11% interest, compounded monthly. How much will this account be worth in 3 months?
$1849.96
You have $900 to invest and you will need the money in 7 years.
Which is better, an account that pays 8.2% interest, compounded annually, or an account that pays 8% interest, compounded daily?
8% daily: $1575.51
8.2% annually: $1562.55
You can generally expect a 3% return from this asset in the long run.
Bonds
What is it called when you invest in multiple companies, or asset types?
Diversification (it lowers risk)
Max has $2300 in an account that earns 2% interest, compounded monthly. How much will this account be worth in 6 months?
$2323.10
You have $700 to invest and you will need the money in 5 years.
Which is better, an account that pays 8.1% interest, compounded monthly, or an account that pays 8% interest, compounded weekly?
8.1%, monthly: $1048.08
8%, weekly: $1043.96
Order these from least risk to most risk: bonds, stocks, savings accounts
savings accounts (least risk)
bonds (medium risk)
stocks (most risk)
Old people generally should invest mostly in...
bonds