INV - Investment Basics Lesson

Investment Basics

Introduction

There are many different ways that you can invest your money. We’ve already talked about bank accounts that will earn interest. However, these bank accounts usually don’t allow for rapid growth of your money. There are other options that involve more risk, but can come with higher rewards! These options include buying stocks, bonds, or certificate of deposits. There is a chance that you could lose money, so you’ll want to be well informed of your investment choices!

In Your Notebook: Please take down important notes, such as formulas, and attempt the practice examples on your own before viewing the solutions!

Yield and ROI Activity

The yield and return on investment (ROI) are two good ways of determining the value of an investment. Click on the tabs to find out how to calculate these two values. After you learn about the Effective Annual Yield, click on the arrow in the bottom right corner to advance the activity and learn about Return on Investment.

 

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