ACCOUNTING 20 – PRACTICAL FINANCIAL KNOWLEDGE
ACCOUNTING 20 – Name:
PRACTICAL FINANCIAL KNOWLEDGE
1. What is an investment?
2. Why do people invest?
3. Define/look at financial institution websites for the information on the following investment topics in the charts provided :
-what are they? Terms?? Percentages? Two Advantages and tow disadvantages??
• GIC (guaranteed investment certificate)
|Definition | |
|terms | |
|percentages | |
|advantages | |
|disadvantages | |
• Term deposit
|Definition | |
|terms | |
|percentages | |
|advantages | |
|disadvantages | |
• TFSA’s
|Definition | |
|terms | |
|percentages | |
|advantages | |
|disadvantages | |
• RRSP
|Definition | |
|terms | |
|percentages | |
|advantages | |
|disadvantages | |
• RRIF
|Definition | |
|terms | |
|percentages | |
|advantages | |
|disadvantages | |
• RESPs
|Definition | |
|terms | |
|percentages | |
|advantages | |
|disadvantages | |
• Bonds
|Definition | |
|terms | |
|percentages | |
|advantages | |
|disadvantages | |
• Stocks
|Definition | |
|terms | |
|percentages | |
|advantages | |
|disadvantages | |
• Money market funds
|Definition | |
|terms | |
|percentages | |
|advantages | |
|disadvantages | |
• Savings accounts
|Definition | |
|terms | |
|percentages | |
|advantages | |
|disadvantages | |
Other questions you might have about investments:
4. Go to this website:
and calculate the following:
1. You put in $ 100 dollars per month for 5 years in a variable GIC with a rate of 2.5%. After this time, calculate the amount of money that you will make.
Months:
Principal:
%age of interest:
Interest Earned:
Total new amount:
2. Now take this money (from question # 1) and lock it in for 5 more years in a fixed GIC. Look for a competitive rate and quote the bank that you received this from. How much will you have earned?
Principal:
Time (in months):
%age of interest:
Interest:
Total new amount:
3. Invest 1000 dollars into a fixed RRSP today. At an average of 3.5 % return on interest. How much will this RRSP be worth in 40 years?
Principal:
Time (mths):
%age of interest:
Interest earned:
New amount after 40 years:
4. WHO WANTS TO BE A MILLIONAIRE??
This is an investment goal calculator. How much money do I want in the future!!!???
How much do you need to invest, per month, starting now, for the next 50 years…how long will it take to get to 1 million dollars? Start now!!!
_______ per month for ____________ years at 3 % interest.
Original investment ___________________
Interest earned ______________________
New amount = $1,000,000
Using this calculator….set your own financial goals for the next time frame:
Starting September 2017….ending June 2020…..
How much I would like? _________________
What I need to invest per month? _____________
Interest rate __________________
How much I actually invested ________________
The total amount after _________ months. __________________
TRY IT OUT!!!!! DREAM….
Using this calculator….set your own financial goals for the next time frame:
Starting _____________________….ending _________________…..
How much I would like? _________________
What I need to invest per month? _____________
Interest rate __________________
How much I actually invested ________________
The total amount after _________ months. __________________
[pic]
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related searches
- management accounting vs financial acc
- management accounting vs financial acco
- financial accounting textbook
- management accounting vs financial accounting
- financial management accounting pdf
- accounting and financial management
- fundamental financial accounting concepts pdf
- accounting financial statements examples
- financial accounting systems requirements
- financial vs managerial accounting examples
- financial accounting notes pdf
- financial accounting pdf free download