Return On Investment: R.O.I.: Examples of calculations using the R.O.I. Formula/Equation. Determining the Net Income and/or a "Sales Price" of an Asset or Investment given a desired minimum Percent Return R.O.I. Description of R.O.I. as essentially the percentage of an investment or asset purchase which produces a profit (net income).

Chapter 2 The Financial Plan – We examined the seventh component which is creating a plan for communicating and keeping records of your investments. We learned that keeping good records is just as important as making and communicating your personal financial decisions. We discovered that writing down your goals and periodically referring to them makes you much more likely to achieve them.

Return On Investment: R.O.I : Definition, Formula, and Calculations. The importance of R.O.I. as a key measure of investment value in the business world. Concept of Net Income. Return On Investment calculated normally as a Percentage return. Review of Compound Interest HW assignment problems.

I planned for Financial Literacy

Compound Interest Calculations. Use of the Compound Interest Formula: Various example calculations with different compounding periods and interest rates. Demonstration calculations of "Balance due" on a loan or mortgage.

Chapter 2 The Financial Plan – We examined the six component which is a plan for retirement. We discovered that retirement planning involves determining how much money to save for retirement every year and how to invest that money. We looked at the ways for accumulating wealth without paying taxes until we retire.

Compound Interest: Definition, Formula, and Calculations. Definition/effect of number of compounding periods,
"rolling snowball" interest process, concept of Annual Percentage Yield APY. Comparison of advantages of Compound Interest vs Simple Interest. Exponential growth of Interest and Balance with compounding. During today's session on Compound Interest, Aiden clearly understood the concept and why compounding is financially more beneficial than Simple Interest.

Chapter 2 The Financial Plan – We examined the fourth component which is developing a plan to manage your risk. This risk is related to the likelihood of financial loss due to a car being stolen or a house or boat being damaged. We learned that this is why we purchase insurance. We determined the need and financial liquidity needed for purchasing asset, medical, and life insurance. We learned about the fifth component which is a plan for investing. We looked for the balance between investing to increase earnings and our need for liquidity. We learned that different types of investments have different levels of risk. The riskier the investment the greater the return.

Simple Interest, Compound Interest. I = PRT Simple Interest Formula. Various Calculations and example problems. Compound Interest process and advantage over simple interest. Annual Percent Yield APY as a true measure of actual interest earned.

We examined the third component which is financing for major purchases. We learned the purpose of down payments in long-term financing. We discovered that big ticket purchases are collateral for the lender because they can repossess the item. We understand that the lenders make money on the interest they charge you for borrowing their money. Lenders determine your overall credit worthiness which is an assessment of how likely you are to pay back the loan. We discovered that lenders will loan you more money than you should borrow so you need to develop your own financial plan for paying for big ticket items.