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NURASHIKIN ROSLY Micro Teaching, Consumer Mathematics: Saving and…
NURASHIKIN ROSLY Micro Teaching
Consumer Mathematics:
Saving and Investments
Savings
Definition
Excess money deposited in the safe, money box or drawer. Extra money can also be deposited at a bank that will provide returns based on interest rates and saving periods.
Types of Savings
Fixed Deposit Account
A sum of money is saved for a certain period of time such as 3 months, 9 months or 1 year tenure.
Account holders will be offered more competitive interest rates compared to savings accounts.
Savings cannot be withdrawn before maturity date
If the money is withdrawn before maturity, the actual interest rate that should be received, will be reduced and will be cancelled at a certain time
A saving certificate will be issued to the account holder
Current Account
Savings in a current account can be used for personal or business purposes.
The account holder may make payment to another party by cheque
The current account applicant must submit a referral who is an existing current account holder at the same bank to ope the account,
The account holder can enjoy an overdraft facility; withdrawing money beyond the balance of the deposit, but with interest charges.
Saving Account
The account holder receives the interest based on the total amount and duration of savings.
The savings account holder can save any amount according to his ability.
Interest rates are lower compared to fixed deposits accounts.
The account holder can withdraw the savings at any time.
The savings can be withdrawn by using a debit card via automatic teller machine (ATM)
Benefits of Savings
Compound Interest
Definition
Interest that is calculated based on the original principal and also the accumulated interest from the previous period of savings.
Formula
MV = P(1+(r/n))^nt MV: matured value P: principal r: yearly interest rate
Simple Interest
Formula
I=Prt P : Principal r: rate t: time (years)
Definition
A reward given to the depositor at a certain rate on the deposit amount (principal) for a certain period of time (in years)
Investment
Return on Investment (ROI)
Definition
Return value of each ringgit invested by the investor
Formula
ROI = (Total return/Value of initial investment) X 100%
Definition
An alternative step for future returns in the form of current income and capital gains.
Types of Investments
Real Estate
Investments on immovable assets such as residential houses, shops, land
Considerations of various aspects such as economic situations, income-generating capabilities that is rent, location and property prospect in the future.
Individuals who invest in real estate will receive an investment return in the form of rent and capital gains.
ROI
House
Rental and capital gain
Commertial lot
Land
Factors affect ROI on real esstate
The economic situation
Political situation
Location
Shares
A company will issue shares for the purpose of raising capital
An individual who purchases shares from a company is the owner of the company under certain conditions
The shareholders will receive returns in the form of dividends and capital gains.
Unit Trust
Trust fund is controlled by a unit trust company that is managed by a qualified professional manager in the field of investment.
Collect money from investors and the money is invested in various potential companies with the aim of providing returns that benefit investors.
Return for Unit Trusts
Bonus shares
Capital gain
Dividents
