The following assessment is an assignment, where you will be required to do research collect and analyse a variety of data then answer questions on the information collected, which will generate evidence to present for assessment You need to research a vanety of financial instruments to prepare yourself for your retirement
1. Choose a financial instrument that would be suitable for you
2. Draft a plan to show how your money would grow if you decided to invest your money with the chosen instrument 3. Research cost and revenue in national and the global economy
Do the following
Provide the following as evidence:
A printout or scanned page of the research done on financial instruments-this could be brochures from financial institutions
2 The plan developed to show the growth of your money using the chosen instrument 3. A synopsis discussing the following:
a What interest was used to calculate the growth of the money?
How this type of interest differs between compound and simple interest and how this interest would affect
the growth of the money? Use a calculation to prove the difference in growth c. How does cost and revenue affect national economy in relation to the global economy? Ensure to include reasonable arguments between the two national and global economy, describing methods to control costs and optimise profits. You could use a national budget as a base for your discussion
As an AI language model, I cannot provide you with printouts or scanned pages, but I can certainly help you with the content of your assignment. Here's how you can approach each section:
1. Choosing a financial instrument:
Research various financial instruments such as stocks, bonds, mutual funds, real estate, or retirement accounts like individual retirement accounts (IRAs) and 401(k)s. Consider your risk tolerance, time horizon, and investment goals to determine which instrument would be suitable for you. For example, if you have a long-term investment horizon and are willing to take on more risk for potentially higher returns, you might consider investing in stocks.
2. Plan for the chosen instrument:
Create a plan that outlines how your money would grow if you decide to invest in the chosen instrument. Include details such as the initial investment amount, expected return rate, investment period, and any additional contributions you plan to make over time. You can use a compound interest calculator or financial planning software to help you project the growth of your investment over time.
3. Understanding interest and its impact on growth:
a. Explain the interest rate used to calculate the growth of your money in your chosen investment. For example, if you invest in a fixed deposit account, the interest rate might be fixed for a specific duration.
b. Compare compound and simple interest and their implications for the growth of your money. Explain how compound interest allows for exponential growth by adding interest on both the initial investment and accumulated interest. Provide a calculation demonstrating the difference in growth between compound and simple interest using the same principal amount and interest rate over a specific period.
c. Research and discuss how costs and revenue impact the national and global economy. Provide examples and arguments on how costs and revenue affect economic indicators such as GDP, employment rates, and inflation. Consider the impact of government spending, taxation policies, trade agreements, and global market conditions on the economy. Discuss methods to control costs and optimize profits, such as cost-cutting measures, investment in research and development, diversification strategies, and government regulations.
Remember to cite your sources and provide references for the information you gather during your research. Good luck with your assignment!