Types of Funds
This type of fund simply tracks a market index and usually has low fees.
Index Fund
This employer-sponsored account often comes with matching contributions.
401(k)
What determines the horizontal asymptote of an exponential function?
The "+ c" at the end of the function
Investing a fixed amount at regular intervals is called this.
Dollar cost averaging
Evaluate log (1000)
3
This type of fund is actively managed by a professional who picks investments.
Mutual Fund
This IRA allows you to withdraw money tax‑free in retirement.
ROTH
In an exponential function, if b > 1, then we have ...
Exponential growth
Buying an asset just because it’s trending is an example of this bias.
Chasing trends
Evaluate log_7 (17)
~1.456
This investment trades like a stock but often tracks an index.
ETF
Most working American citizens will have access to this retirement benefit.
Social Security and Medicare
Identify the asymptote of y = 4.3 (1.3)^x + 7
7
This strategy often yields higher returns historically but involves higher risk, as you invest everything at once.
Lump-sum investing
Solve 2*4^x = 48
~2.292
This type of fund automatically becomes more conservative as you approach retirement.
Target-Date Fund (TDF)
This IRA gives you a tax break now but taxes you when you retire.
Traditional
When do we have exponential decay?
When 0< b <1
This is the free money you get when your employer adds to your retirement contribution.
Company matching
Mari invests $1,000 in the stock market with an expected return of 15%. Using the rule of 72, how long will it take Mari's investment to double?
4.8 years
his fund type has higher fees because a manager attempts to outperform the market.
Actively managed mutual fund
When should someone utilize a ROTH IRA?
When their marginal tax rate is lower now than they would expect it to be in the future.
How do you find the % growth in an exponential function.
1 + r = b, so r = b - 1, then convert r to a %.
A diversified portfolio helps reduce this type of risk.
Volatility/market swings
Mari invests $1,000 in the stock market with an expected return of 15%. How long will it take for her investment to reach $2,500?
~6.556 years