5.0 Unit 5 Exam

Instructions

https://www.desmos.com/scientific to use for calculations

3

How can compounding increase your investment’s growth?

3

What statement accurately describes the historical trends of the stock market since its inception?

3

If the one-day performance of Super Duper Stock shows a -11.4% return, what can you assume about the longer-term historical performance of their stock?

3

If you want to maximize your investment returns, which of these suggestions would be the WORST advice?

3

How does a bond differ from a stock in your investment portfolio?

3

When it comes to investing in the stock market, which of the following statements is TRUE?

3

In 2018, Agatha set up a spreadsheet with a list of 10 stocks and 4 bond funds she’d just purchased for her investment portfolio. She recorded her purchase price per share and the number of shares she’d bought of each asset. She hasn’t bought or sold any shares since that day. She’s interested to know how much money she’d gain or lose if she sold all the shares today. What new data would she need in order to determine the return on investment for her entire portfolio?

3

What does it mean to have an investing portfolio that is diversified?

3

What is a dividend?

3

Which of the following is TRUE about investing?

3

Which of these terms regarding bonds is NOT correct?

3

Trevor has saved $500 in a savings account that earns 0.5% interest annually. What will most likely happen to the purchasing power of his savings over time?

3

Colin is working to complete a spreadsheet to track his investment portfolio. Here’s where he’s gotten so far:

3

Which of the following accurately describes the "bond see-saw"?

3

What is the growth factor of the function represented by this table? Note: y-values are rounded to two decimal places.

3

Emile has $300 to deposit in an investment account that will double every decade. How much money will Emile have in 3 decades?

3

You’ve set a goal of having $10,000 after 15 years. If you estimate that your investment account will have an average yearly growth factor of 1.09, which equation could be used to calculate how much you should invest today?

3

You work at a company as an accountant. You are calculating the value of the company’s assets after a 4% per year depreciation. If the initial value of the assets was $204,500 and it has been 5 years since they were purchased, what is the value of these assets today?

3

You model your investment account using the formula y = 20000(1.035)x where x represents the number of years and y represents the account balance after x years. What is the growth rate of your investment?

4

5

You currently have $5,500 that you would plan to deposit into an investment account that has an anticipated growth factor of 1.032 per year. Use guess and check to estimate the number of years that it will take for this investment to grow to $10,000. Show your work.

20

You can model a particular stock investment using the formula $15000(1.07)^x where x represents the number of years that you have held your investment.  Round to the nearest penny. 
Years      Invesement Balance
     3      $_______ 
     5      $_______ 
   10      $_______ 
   20      $_______ 

What was your total return on investment (ROI) after 20 years? _______ % (round to the nearest whole percent)  Show your work (Screen shot Desmos) for full credit. 

5

Alec’s portfolio includes a bond fund that has an average annual growth of 3.5% per year.  If he invests $165, what will his investment balance be after 25 years?_______ Show your work AND EQUATION USED (Desmos Screenshot) for full credit. 

5

You modeled the growth of your investment using the following table.  What is the growth rate each year?_______ %

	Linear	Exponential
Function A
Function B
Function C
Function D

	Linear	Exponential
Function A
Function B
Function C
Function D

5.0 Unit 5 Exam

How can compounding increase your investment’s growth?

What statement accurately describes the historical trends of the stock market since its inception?

If the one-day performance of Super Duper Stock shows a -11.4% return, what can you assume about the longer-term historical performance of their stock?

If you want to maximize your investment returns, which of these suggestions would be the WORST advice?

How does a bond differ from a stock in your investment portfolio?

When it comes to investing in the stock market, which of the following statements is TRUE?

What does it mean to have an investing portfolio that is diversified?

What is a dividend?

Which of the following is TRUE about investing?

Which of these terms regarding bonds is NOT correct?

Trevor has saved $500 in a savings account that earns 0.5% interest annually. What will most likely happen to the purchasing power of his savings over time?

Colin is working to complete a spreadsheet to track his investment portfolio. Here’s where he’s gotten so far:

Which of the following accurately describes the "bond see-saw"?

What is the growth factor of the function represented by this table? Note: y-values are rounded to two decimal places.

Emile has $300 to deposit in an investment account that will double every decade. How much money will Emile have in 3 decades?

You’ve set a goal of having $10,000 after 15 years. If you estimate that your investment account will have an average yearly growth factor of 1.09, which equation could be used to calculate how much you should invest today?

You work at a company as an accountant. You are calculating the value of the company’s assets after a 4% per year depreciation. If the initial value of the assets was $204,500 and it has been 5 years since they were purchased, what is the value of these assets today?

You model your investment account using the formula y = 20000(1.035)x where x represents the number of years and y represents the account balance after x years. What is the growth rate of your investment?

You currently have $5,500 that you would plan to deposit into an investment account that has an anticipated growth factor of 1.032 per year. Use guess and check to estimate the number of years that it will take for this investment to grow to $10,000. Show your work.

How can compounding increase your investment’s growth?

What statement accurately describes the historical trends of the stock market since its inception?

If the one-day performance of Super Duper Stock shows a -11.4% return, what can you assume about the longer-term historical performance of their stock?

If you want to maximize your investment returns, which of these suggestions would be the WORST advice?

How does a bond differ from a stock in your investment portfolio?

When it comes to investing in the stock market, which of the following statements is TRUE?

What does it mean to have an investing portfolio that is diversified?

What is a dividend?

Which of the following is TRUE about investing?

Which of these terms regarding bonds is NOT correct?

Trevor has saved $500 in a savings account that earns 0.5% interest annually. What will most likely happen to the purchasing power of his savings over time?

Colin is working to complete a spreadsheet to track his investment portfolio. Here’s where he’s gotten so far:

Which of the following accurately describes the "bond see-saw"?

What is the growth factor of the function represented by this table? Note: y-values are rounded to two decimal places.

Emile has $300 to deposit in an investment account that will double every decade. How much money will Emile have in 3 decades?

You’ve set a goal of having $10,000 after 15 years. If you estimate that your investment account will have an average yearly growth factor of 1.09, which equation could be used to calculate how much you should invest today?

You work at a company as an accountant. You are calculating the value of the company’s assets after a 4% per year depreciation. If the initial value of the assets was $204,500 and it has been 5 years since they were purchased, what is the value of these assets today?

You model your investment account using the formula y = 20000(1.035)x where x represents the number of years and y represents the account balance after x years. What is the growth rate of your investment?

Identify whether each function is linear or exponential.

Which function has the greatest growth factor? Justify your response in show your work.

You currently have $5,500 that you would plan to deposit into an investment account that has an anticipated growth factor of 1.032 per year. Use guess and check to estimate the number of years that it will take for this investment to grow to $10,000. Show your work.

Identify whether each function is linear or exponential.

Which function has the greatest growth factor? Justify your response in show your work.