3. 1.What is an Index Fund?
2.What is the basic equation for finance?
3.What is the FutureValue of $100 invested at a 13% growth rate for 7 years?
4.What is the PresentValue of $800 in 12 years at 4%?
5.What is the FutureValue of $700 invested at a 7% growth rate for 13 years?
6.What is the PresentValue of $500 in 4 years at 12%?
7.What does insurance allow you do do?
8.What is the difference between an index fund and a mutual fund?
9.What is compounding?
10.What is discounting?
A stock that consists of stocks from a stock market group
(1 + r)N
$100 x (1 + r)N = $100 x (1 +.13)7 = $100 x 2.353 = $235.30
$800 ÷ (1 + r)N = $800 ÷ (1 +.04)12 = $800 ÷ 1.60 = $500.00
$1,686.89
$317.75
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management, fees, diversity
multiplying to find a future value
dividing to find a present value