Unit 4 Saving and Investing PPT

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

2. 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

3. 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 hubbard.oahs@gmail.com
Presentations Block Day!
Must submit presentation notes (flashcards)

4. 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

5. 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

6. Annual Interest Rate
SIMPLE INTEREST
FORMULA
Interest paid
Principal
(Amount of
money invested
or borrowed)
Time (in years)
I = PRT

7. 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

8. 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

9. COMPOUND INTEREST
FORMULA
amount at
the end
Principal
(amount
at start)
annual interest
rate
(as a decimal)
nt
n
r
PA 





 1
time
(in years)
number of times per
year that interest in
compounded

10. nt
n
r
PA 





 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

11. 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!

12. Investment Plan Project

13. Investment Plan Project
• Create a Google Slides titled “Investment Plan”
and share with hubbard.oahs@gmail.com
• Access links at www.oahsfinance.weebly.com

14. 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

15. 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

16. 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
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Finance – Unit 4 Savings

17. 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

18. 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

19. Investment Plan Project
www.oahsfinance.weebly.com
Finance – Unit 4 Savings
Index, Value, and Growth Funds

20. 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

21. 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