Below are the directions

Choose TWO of the following to answer. (50 points each)

1) Investing

Make a chart detailing how you would invest $100,000. Include a minimum of three

investment types. Detail the amount invested, the % and the investment type in your

Chart.

In a minimum of a paragraph, explain why you made the choices you did. The

following are examples of points to address. How would your investment goal guide

you? How did you achieve diversification and why did you made the choices you did?

2) Investing

Detail a future investment strategy. List at least three savings goals (ex: emergency

fund, college, vacation, car, house, retirement, etc). Include a minimum of three

investment types which would help you achieve your goals. Describe how each type

would tie into each goal (short term=less risk and less potential return vs. long

term=more risk and more potential return).

In chart form, detail your plan. Be sure to include target numbers of the total amount

needed to achieve each goal and the investment types utilized to meet each goal.

In a minimum of one paragraph, give a brief synopsis of your strategy.

3)Saving

Using a chart, detail a UNIQUE example of simple vs. compound interest. Use the

following numbers in your example: an initial investment of $1,000, an interest rate of

1% and a minimum length of three years.

In a minimum of a paragraph, answer the following. Which kind of interest would you

want for your savings account and why? Which kind would you want for a loan and why?

Which is the better type for your present needs? Do you see that changing as you get

older and why?