Explanation should include
- defining return and risk
- identifying types of investment vehicles
- calculating simple interest
- describing compound interest and its benefits.
Process/Skill Questions:
- If your investment receives an annual rate of return of 12 percent, how long will it take for your money to double?
- What are examples of investment strategies? Investment vehicles?
- What is meant by the face value of a T-Bill or Savings Bond?
- What would be the rate of return if you purchased 10 shares of a stock at $44 per share and then sold them for $55 per share six months later?