21
Unit 4 Saving and Investing Orcutt Academy High School Accounting & Finance

Unit 4 Saving and Investing PPT

Embed Size (px)

Citation preview

Page 1: Unit 4 Saving and Investing PPT

Unit 4 Saving and Investing

Orcutt Academy High School

Accounting & Finance

Page 2: Unit 4 Saving and Investing PPT

Investment FAQ Topics 1. Stocks

2. Bonds

3. Mutual Funds

4. Index Funds

5. Real Estate

6. Collectibles

7. Small Business

8. Futures

9. Precious Metals

10.401k/403b

11. IRA/Roth IRA

12.Company Pensions

Page 3: Unit 4 Saving and Investing PPT

Investment FAQ Slides Use the site www.investopedia.com

1. Description including how to invest

2. Benefits

3. Investment Costs

4. Typical Return (Range or Average)

5. Return Potential (Low, Average, or High)

6. Risk (Low, Moderate, or High)

7. References

Title with your investment type “Stocks”

Share with [email protected]

Presentations Block Day!

Must submit presentation notes (flashcards)

Page 4: Unit 4 Saving and Investing PPT

SIMPLE INTEREST Interest paid on the principal only

and NOT on any accumulated interest

COMPOUND INTEREST Interest is paid on the principal

AND on any accumulated interest

Compound vs. Simple Interest Video

Page 5: Unit 4 Saving and Investing PPT

Read the following article, and respond to the blog post

“4 Ways Simple Interest is Used in Real Life”

1. CDs of 1 yr or less

2. Auto Loans

3. Consumer Loans

4. Discounts on early

payments

Page 6: Unit 4 Saving and Investing PPT

Annual Interest Rate

SIMPLE INTEREST FORMULA

Interest paid

Principal

(Amount of

money invested

or borrowed)

Time (in years) I = PRT

Page 7: Unit 4 Saving and Investing PPT

If you invested $100,000 in a CD account that paid

simple interest of 2%, find the interest earned

after 2 years.

I = (100,000)(0.02)(2)

I = $4,000

enter in formula

as a decimal I = PRT

Simple Interest Example 1

Page 8: Unit 4 Saving and Investing PPT

If you invested $300 in an account that paid

simple interest, find how long you’d need to

leave it in at 1.5% interest to make $15.00.

15 = (300)(0.015)T

Simple Interest Example 2 Solving for Time

enter in formula

as a decimal I = PRT

It will take 3 years and 4 months for the investment

to reach a maturity value of $315

Page 9: Unit 4 Saving and Investing PPT

COMPOUND INTEREST FORMULA

amount at

the end

Principal

(amount

at start)

annual interest

rate

(as a decimal)

nt

n

rPA

1

time

(in years)

number of times per

year that interest in

compounded

Page 10: Unit 4 Saving and Investing PPT

nt

n

rPA

1500

.013

4

4 (2)

$513.15A

Find the amount that results from $500 invested at

1.3% compounded quarterly after a period of 2 years.

Compound Interest Example

To solve, plug in to calculator

Follow PEMDAS!

1. Parenthesis .013/4 = __+1

2. Exponents ^8

3. Multiplication x 500

Page 11: Unit 4 Saving and Investing PPT

Complete the Next 2 Worksheets

Simple Interest Show work for each problem

Simple Interest (Solving for P,R,T) Be Careful when they ask for the final amount (#1-3)

Extra Credit for #7 and #8

Due at the end of the period!

Check your answers at my desk when you’re done!

Page 12: Unit 4 Saving and Investing PPT

Investment Plan Project

Page 13: Unit 4 Saving and Investing PPT

Investment Plan Project • Create a Google Slides titled “Investment Plan”

and share with [email protected]

• Access links at www.oahsfinance.weebly.com

Page 14: Unit 4 Saving and Investing PPT

Investment Plan Project

Slides

1. Title Slide (Investment Plan)

2. Investment Personality – Investment Goals

– Risk Tolerance

– Ability to Cope with Uncertainty

3. Money Personality – Describe your money personality

– List advice for your personality

4. Retirement Needs – Describe assumptions (calculator inputs)

– How much you need for retirement

– Yearly & Monthly savings (% and amount)

5. Asset Allocation – Describe assumptions (calculator inputs)

– Pie Chart

Due

Monday

4/25

Due

Tuesday

4/26

www.oahsfinance.weebly.com

Finance – Unit 4 Savings

Page 15: Unit 4 Saving and Investing PPT

Investment Plan Project

Slides

6. Five Stocks – Choose at least five stocks. For each stock, list

company or index name, ticker symbol, and

current price per share (include date).

7. Online Broker – Brokerage name, investment products,

commission and fees, minimum to open,

promotions, etc…

8. Detailed Description of One Stock – Company or index name, ticker symbol, P/E

ratio, annual earnings per share, stock history

(graph), and number of shares you will

purchase your first year investing. Also,

explain why you decided to purchase this

stock, and how this purchase reflects your

investment personality.

Due

Friday

4/29

www.oahsfinance.weebly.com

Finance – Unit 4 Savings

Page 16: Unit 4 Saving and Investing PPT

Investment Plan Project

Slides

9. 2 Bonds – Include one corporate bond & one

government bond

– For each bond include

• Price

• Rate of return/Yield/Coupon

• Term

Due

Tuesday

5/3

www.oahsfinance.weebly.com

Finance – Unit 4 Savings

Page 17: Unit 4 Saving and Investing PPT

Investment Plan Project

Slides

10. One Index or Mutual Fund. – Include

• Price/Share

• Expenses (%)

• Fund History

• Investment Strategy

• Why you chose the fund

Due

Block Day

www.oahsfinance.weebly.com

Finance – Unit 4 Savings

Page 18: Unit 4 Saving and Investing PPT

Investment Plan Project

Slides

11. Investment Portfolio – Investment Portfolio Excel Template

• Download and complete the

template for your chosen year.

Compare the pie chart to your asset

allocation pie chart, and make sure

your totals make sense given your

retirement needs. – Vanguard ETFs (no minimums)

– US News Best Mutual Funds

• Save as a PDF and use the snipping

tool to save an image of your

investment portfolio and insert on

your Google presentation.

Due

Friday

www.oahsfinance.weebly.com

Finance – Unit 4 Savings

Page 19: Unit 4 Saving and Investing PPT

Investment Plan Project www.oahsfinance.weebly.com

Finance – Unit 4 Savings

Index, Value, and Growth Funds

Page 20: Unit 4 Saving and Investing PPT

Investment Plan Project

Slides

12. Portfolio Analysis – Is your portfolio conservative,

moderately aggressive, or aggressive?

– Is your portfolio passive or active?

How?

– How is your portfolio diversified?

13. Conclusion – Describe the highlights of your

investment plan. • Which parts were the most useful?

Eye-opening? Relevant?

Due

Today!

www.oahsfinance.weebly.com

Finance – Unit 4 Savings

Page 21: Unit 4 Saving and Investing PPT

Investment Plan Project

Presentation & Grade

Presentation Notes – Use the notes feature on Google slides or take notes on

paper. This document will help you define key terms.

Grade – View the grading rubric.

Presentation – Present to one or both of you parents/guardians this weekend

and submit the Parent/Guardian Evaluation Form and Oral

Presentation Rubric Monday! Your parent/guardian will be

contacted to verify you have presented to him or her.

www.oahsfinance.weebly.com

Finance – Unit 4 Savings