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A ) Tell me four ways your net worth can increase, you can make up the numbers for example you earn more by _ _
A Tell me four ways your net worth can increase, you can make up the numbers
for example you earn more by or you lower spending by
B Do a personal balance for yourself, for where you will be five years from now. Be as
detailed as possible. What is your net worth in five years Include
Liquid assets, for example cash
Other assets, for example car
Current liabilities, cell phone bill
Other liabilities, balance of the loan on your car
Please include as many assets and liabilities as you can
C what is your Liquidity ratio, based on the above balance sheet. That is your total Liquid
Assets divided by your Total Current Debt
D I am attaching an article on how some families live on their income. Pick one family out
and tell me your advice to them.
E Next week we study Income taxes
What is Adjusted Gross Income Whats an example of an itemized deduction
FOR Extra credit optional
To better understand how your money grows, by compounding:
Do a future value of money problem using Excel. Go to Excel
formulas,
financial,
FV
Put in the rate percentage return on your investment for example is
number of periods That is how many years out from now you will need the money, so
if it is years put in
PMT you can skip
PV is present value that is how much are you investing, put it as a negative number,
so if you are investing $ put in
TYPE, you can skip
Enter these and you will see the Future Value of your investment
So for example, you invest $ want to get on it for years. That equals $
To assist you, there are good Youtubes on calculating Future Value or FV
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