Download presentation

Presentation is loading. Please wait.

1
THE POWER OF INTEREST

2
**DAVE RAMSEY'S INVESTMENT CALCULATOR**

3
**Interest is the fee for the use of money over time.**

4
**What are some items you may loan to a friend?**

5
**What is the opportunity cost when loaning something to someone else?**

The owner does not get to use the item for a period of time.

6
**Interest is paid by a borrower and received by a lender or a saver.**

A saver is paid when they allow a borrower to use their money for a period of time. Interest is paid by a borrower and received by a lender or a saver. Who pays interest? Who receives interest?

7
**“HE WHO HAS THE Gold---Rules!”**

8
**Double A Penny For One Month—How Much At End?**

“I do not believe Dave Ramsey’s claim.” Go to Excel

9
**simple interest A1 Type the word Simple A2 Type in 100 A3 = A2 + 5**

Paid on the amount of the original investment and does not change over time. A1 Type the word Simple A2 Type in 100 A3 = A2 + 5 Drag

10
compound interest Paid on the amount of the original investment and all accrued interest. C Type Compound C Type C = C2 * 1.05

11
**Add $2,000 starting with a $100 investment**

E1 Title Add $2,000 per year E2 Type 100 E3 = (E2 * 1.05)

12
**Rule of 72 How many years to double your money?**

Divide 72 by the Interest Rate Interest rate is /4 = 18 years. Interest rate is /18 = 4 years

Similar presentations

© 2017 SlidePlayer.com Inc.

All rights reserved.

Ads by Google