time value of money magic! “ active learning tool”

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© Family Economics & Financial Education –May 2011 – Time Value of Money Magic! – 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona 5.0.51.G1 Time Value of Money Magic! “Active Learning Tool”

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Time Value of Money Magic! “ Active Learning Tool”. Time Value of Money Magic!. Year 50 Interest Earned: $845.46 Amount Investment is Worth: $2945.70. Year 20 Interest Earned: $111.07 Amount Investment is Worth: $386.97. Year 15 Interest Earned: $79.19 - PowerPoint PPT Presentation

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Page 1: Time Value of Money Magic! “ Active Learning Tool”

© Family Economics & Financial Education –May 2011 – Time Value of Money Magic! – 1Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

5.0.51.G1

Time Value of Money Magic!

“Active Learning Tool”

Page 2: Time Value of Money Magic! “ Active Learning Tool”

5.0.51.G1

© Family Economics & Financial Education –May 2011 – Time Value of Money Magic! – 2Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

Year 5Interest Earned: $33.26Amount Investment is Worth: $140.26

Year 10Interest Earned: $56.46Amount Investment is Worth: $196.72

Year 15Interest Earned: $79.19Amount Investment is Worth: $275.90

Year 20Interest Earned: $111.07Amount Investment is Worth: $386.97

Year 50Interest Earned: $845.46Amount Investment is Worth: $2945.70

Time Value of Money Magic!

Initial Investment (Principal): $100.00 at 7% compounding interest

Year 1Interest Earned: $7.00Amount Investment is Worth: 107.00

Page 3: Time Value of Money Magic! “ Active Learning Tool”

© Family Economics & Financial Education –May 2011 – Time Value of Money Magic! – 3Funded by a grant from Take Charge America, Inc. to the Norton School of Family and Consumer Sciences at the University of Arizona

5.0.51.G1

Which is worse…

Spilling the beans? OR

Never having them?