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Saving and Investing
Part 1: Time Value of Money

Activity: Read and complete the worksheet The Power of Compound Interest
Go to the website listed in the document and come up with your own example. Compare differences in interest paid based on frequency of compounding.

Complete the worksheet: Rule of 72
Enter answers into form

Savings Analyzers on the Internet
Activity: You want to save $6,000 for a down payment on a new car in 2 years. You've already saved $1,500. How much will you need to save each month to reach your gain if you are earning 2%, 3.5%, or 5% on your money? Use the savings calculator found at this web site to determine your answers.
http://www.asec.org/ycalcs.htm

Activity: Choose one of the "Savings Calculators" at the "Choose to Save" web site below and use it to answer your own savings question.
http://www.choosetosave.org/tools/fincalcs.htm

What question did you select and what did you learn from the experience?

Name:

Email Address:

 

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