List at least three of your financial goals. Explain whether they are short-term, intermediate, or long-term. (1-3 sentences. 3.0 points) 2. List at least three things you would consider when choosing a bank and account type. (1-3 sentences. 3.0 points) 3. Describe at least four ways you can take money out of a checking account. (1-4 sentences. 2.0 points) 4. Calculate the ROI dollar amount and percentage for these example investments. a. You invest $50 in a government bond that says you can redeem it a year later for $54. Use the instructions in Lesson 3 to calculate the ROI dollar amount and percentage. (2.0 points) TIP: Subtract the initial investment from the total return to get the ROI dollar amount. Then divide the ROI dollar amount by the initial investment, and multiply that number by 100 to get the percentage. b. You invest $100 in stocks and sell them one year later for $115. Use the instructions in Lesson 3 to calculate the ROI dollar amount and percentage. (2.0 points) TIP:
Answers
Financial goals are an vital stage towards financial freedom.
Short term financial goals
In starting short-term financial goals, you can increase sureness and increase general awareness, which is vital for attaining extra goals.
1. setting up a financial plan.
"we are not aware where we are heading untill we actually dont know where we are at this moment.
This meant setting up a financial plan; we will be surprised at the amount of money is slipping through cracks each month. "
2. Generate an extra fund.
An alternative fund is a prosperity that you precisely set separately to pay for unanticipated expenditures.
In the beginning , $ 500 to $ 1,000 is a decent goal. As soon as you have finished that goal, you want to enlarge it so that your alternative fund can shelter large financial complications like joblessness.
3. Pay credit card bills.
pay a credit card loan or creat an emergency fund first. Certain persons say that you must create an alternative fund, although you still have a credit card loan, since without an emergency fund, you will direct an unforeseen expenditure to credit card debt.
Three things to choose a bank account
• Safeguard Your Money ...
• Charges.
• Comfort of Deposit
There are 4 methods to withdraw money from the checking account:
1. Extract money from inside the bank personally, go to the bank, pen the check allocated for cash, sign check And receive cash.
2. ATM- use the bank card at ATM. When you insert the card inside the machine, it will ask you to feed the PIN.
3. Transfer money amid bank accounts,
4. Usage of a debit card on the grocery or something else and receive the money back.
Government bond = the sum capitalized in $ 50
Total sum repaid after 1 year =$ 54
So to find the rate of interest earned .
Total money earned in one year = Total sum repaid after 1 year - Sum capitalized in government bond
Hence, the rate of interest earned in one year = $ 54 - $ 50
= $ 4
Hence, interest earned in a year = $ 4.
We are familiar with the formula,
substituting the values in the formula,
we get
rate of Interest =
Divided 50 to 50, we get 2.
hence, rate of interest (ROI) = 8% / year.
b. IIIlLy 115 -100 = 15$
100---1
115---?
115/100 -1=1.15-1 = 0.15
=15%
Answer:
1. One of my financial goal is to save up 20% of my salary in the bank per month. This is a short term goal because the time frame is only after every month.
Then, save up money to start a business is somehow a long-term goal already since there are a lot of things to get through before finally reaching that goal.
Lastly, save up money for retirement. To be able to have a peaceful retirement life, one should prepare for it by not spending too much while still earning. This, of course, is a long-term goal.
2. Three things to think about when choosing a bank account are, safeguard Your Money, charges, and comfort of Deposit
3. There are 4 methods to withdraw money from the checking account:
Extract money from inside the bank personally, go to the bank, pen the check allocated for cash, sign check And receive cash.
ATM- use the bank card at ATM. When you insert the card inside the machine, it will ask you to feed the PIN.
Transfer money amid bank accounts,
Usage of a debit card on the grocery or something else and receive the money back.
4. Government bond = the sum capitalized in $ 50
Total sum repaid after 1 year =$ 54
So to find the rate of interest earned. Total money earned in one year = Total sum repaid after 1 year - Sum capitalized in government bond. Hence, the rate of interest earned in one year = $ 54 - $ 50
= $ 4 Hence, interest earned in a year = $ 4.
We are familiar with the formula, substituting the values in the formula, we get rate of Interest = Divided 50 to 50, we get 2. Hence, rate of interest (ROI) = 8% / year.
B.
115 -100 = 15$
100---1
115---?
115/100 -1=1.15-1 = 0.15
=15%
5. I would like to buy a car with the income I would make, it would be a equity investment. I chose this item because it would help me get to work and places on my owns. I would also like to buy or rent a house with my income, this would also be a equity investment, it would give me a place to live to a long-period of time. I would like to invest in a strong company would wants to help the good in the world, this is a debt investment, it would give a strong face to the world.
Explanation:
Just did it and got a 100%