Untitled Prezi

Cash Investments

Investing savings account at 1% APR

• What is a savings account? How does it work?

- A bank account that earns interest throughout time

- You open a savings account at the bank, then bank pays you interest on the money that you deposit and leave in that account. The bank then loans that money to other people.

• What is APR?

- Shows how much credit costs on a yearly basis

• What happens If you only invest half of your money? How does it affect your account over the 5 years?
• Formula: I=PRT
• I=(20,000)(.01)(5)
• I=1,000

Cash Investments

Invest in a 5 year CD (certificate of deposit) at 2.75% APR

What is a CD? How does one work?

- A CD is a savings account that has a fixed interest rate

- A CD works by money staying in the bank for a certain length of time to earn higher interest rate

• Formula: I=PRT
• I=(25,000)(0.0275)(5)
• I= 3,437.50

Interview cont.

Interview

Thinking about Investments

When thinking on who I can interview, I thought about who had somewhat of an experience with investing or still wants to invest. Then, I remembered one of my family’s friend was perfect for this task. She works a part time job as a Computer Lab Instructor, so can’t afford to make big investments at the moment. A thing she as invested on (and many people don’t realize) is her education. It was important for her to go to college, because she would be the first one in her family to graduate with a degree. In college, she got her studied to be a business major. She was glad she took those classes, because it helped her better understand how the stock market worked, and how to invest in a smart way. She did explain to me that investing in a stock is one of the easiest way to make a profit.

But apart from college, she hasn’t made a big investment since then. The reason she says that she hasn’t made an investment yet is because there is something that always comes up in her life that prevents her from taking that extra step. I could tell by the look on her face that she really wanted to make those investments. So I asked if she’s ever going to try to make an investment again. She told me that she made a new goal; that when she is in her thirties, one of her investments is to open up a restaurant. I was happy to hear that she hasn’t given up her dreams after all her setbacks.

Real Estate Investments

180,000 (home)

160,000(mortgage)

5.75 rate

30 years

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How Will You Invest Project

formula= A=Pr

180,000(1.05)^5=229730.68125

60

• monthly payments= 3,828.84468

160,000(.0575)(30)=276,000

450,000-276,00

P=(180,000)(.05)(30)

270,000 +180,000

• Total profit=174,000

• Total pay after 30yrs= 450,000

15 year 6 %

P=(180,000)(.06)(15)

162,000+ 180,000

• Total pay after 30yrs=342,000

Interview cont.

Another investment she plans to do in the future was to invest in the S&P500; which was introduced to her by her business professor. S&P500 is a stock where people are able to invest on the top 500 companies in the market. According to her professor, the stock is one of those that can never go wrong, because you might lose money one day, but can easily earn back your profits. She has always wanted to make that invest in that stock, because she always thought it to be interesting. She hopes as she continues to attain more experience with the stock market, she would want to invest in more stocks apart from the S&P500; as well as invest in some bonds in the future.

Cash Investment

invest in a stock portfolio at 10% APR

• What is a stock portfolio? How does it work?

- A stock portfolio is a grouping of financial assets such as stocks, bonds and cash.

- A stock portfolio works by the new investor buying share from existing investor via stock market.

• Formula: I=PRT
• I=(40,000)(0.1)(5)
• I=20,000

Cash Investment

invest in a mutual fund at 8% APR

• What is mutual? How does one work?

- Mutual is a collection of investments, such as stocks, bonds and other funds owned by a group of investors and managed by a professional money manager.

- A mutual fund works when a professional manager chooses investments that match the fund's goals for risk and return.

• Formula: I=PRT
• I=(20,000)(.08)(5)
• I=8,ooo

Interview cont.

Jasmine. M

Andrea.M

Zuhei.M

Per. 3

When I asked her if an investment affects her life, she responded with saying that any investment we do is going to affect us. Doesn’t matter if someone wins or loses profit. When she was in college, she told me her fellow classmates starting investing when there were around 16 or 17. Even they recommended her to start investing, because it was one of their best decisions they made. She did mention to me that everyone should make an investment in the life. It could be big or small, just as long it is something we want to invest in.