Being a good student in your Financial Algebra class, you decide to invest the money. You decide to save the money for retirement and want to leave it in the bank till you retire at 65 years old (How many years is that from now?)
You are not sure where to put the money, so you decide to do some research regarding interest rates and investing.
You will chose a depository institution and find the interest rate for their savings tools (listed below). Before you do any calculations, show your teacher the interest rate you found and where.
What institution did you choose? Include a link to their homepage.
How much your $5000 will be worth when you retire if you invest in a Savings Account? (Include a link to where you found the interest rate.)
How much your $5000 will be worth when you retire if you invest in a Money Market Account? (Include a link to where you found the interest rate.)
How much your $5000 will be worth when you retire if you invest in a Certificate of Deposit? (Include a link to where you found the interest rate.)
How much your $5000 will be worth when you retire if you invested in the stock market with an average return of 7%?
In the context of saving for retirement, what is an IRA? What does it stand for?
What are the advantages of a Traditional IRA? When do you pay taxes on your contributions to a Traditional IRA?
What are the advantages of a Roth IRA? When do you pay taxes on your contributions to a Roth IRA?
What are the positives and negatives for both?
What is a Mutual Fund?
What is an Index Fund?
What is a Stock? How would you buy one, two, or fifty of them?
What is the difference between an individual stock and a mutual fund?
What are the risks of buying Stocks and Mutual Funds versus putting your money in a traditional savings tool?