Explain the following concepts to one of your family members/friends.

1. Explain to him/her why s/he will get a fortune if s/he starts saving and investing $5 every day. Use the concept of time value of money and power of compounding.
2. Loan amortization help him/her understand how to calculate how much principal and how much interest s/he pays each month on his/her mortgage.

• Make sure your answers are concise but accurate.
• Make sure your family members/friends understand your explanations. You will need to turn in a statement from him/her certifying that 1) you have explained both of the concepts above to them and 2) your explanations have helped them understand the basics of these concepts. Make sure they print their names on the statement, state their relationship with you, sign and date it. You must turn in this statement with your answers, and you will not get credits for the quiz if this statement is missing.