Module 9 Outline MATH 115 Problem Solving MODULE NINE (Week 9) Annuities, Stocks, and Bonds (Chapter 10) Overview: A good understanding of the topics of this chapter is extremely important to the long-term of your financial health. Many students believe that it is impossible for working people to accumulate several hundred thousand or a million dollars. They simply do not have a good understanding of regular investing and the effect of compound interest over many years. The section on annuities includes a discussion of Individual Retirement Accounts to help students understand the value of an annuity in their own lives. The time value of money is emphasized by a discussion of the present value of an annuity and also sinking funds. Sinking funds are commonly used by business and government to accumulate funds to pay off debts. Stocks and bonds are common investment vehicles. It is difficult to pick up a paper today without some reference to stocks, bonds, or mutual funds, which are also introduced in this chapter. Most financial planners recommend including stocks and bonds or mutual funds composed of stocks and bonds in any long-term investment portfolio. They make this recommendation simply because the returns on stocks have generally been far superior to that of banks over the past 50 years or so. A cumulative review of simple interest, compound interest, annuities, and stocks and bonds follows this chapter and is an excellent tool to help you integrate the various concepts. Learning Outcomes: Upon completion of this module, you should be able to: Recognize basic terms with annuities. Calculate annuities. Utilize a sinking fund table. Identify the types of stocks. Explain the basics of bonds. Reading Assignment: Miller, C.D., Salzman, S.A., & Clendenen, G. (2009). Business Mathematics (11th ed.). MA: Pearson Education, Inc., Chapters 10.

Module 9 Outline MATH 115 Problem Solving MODULE NINE (Week 9) Annuities, Stocks, and Bonds (Chapter 10) Overview: A good understanding of the topics of this chapter is extremely important to the long-term of your financial health. Many students believe that it is impossible for working people to accumulate several hundred thousand or a million dollars. They simply do not have a good understanding of regular investing and the effect of compound interest over many years. The section on annuities includes a discussion of Individual Retirement Accounts to help students understand the value of an annuity in their own lives. The time value of money is emphasized by a discussion of the present value of an annuity and also sinking funds. Sinking funds are commonly used by business and government to accumulate funds to pay off debts. Stocks and bonds are common investment vehicles. It is difficult to pick up a paper today without some reference to stocks, bonds, or mutual funds, which are also introduced in this chapter. Most financial planners recommend including stocks and bonds or mutual funds composed of stocks and bonds in any long-term investment portfolio. They make this recommendation simply because the returns on stocks have generally been far superior to that of banks over the past 50 years or so. A cumulative review of simple interest, compound interest, annuities, and stocks and bonds follows this chapter and is an excellent tool to help you integrate the various concepts. Learning Outcomes: Upon completion of this module, you should be able to: Recognize basic terms with annuities. Calculate annuities. Utilize a sinking fund table. Identify the types of stocks. Explain the basics of bonds. Reading Assignment: Miller, C.D., Salzman, S.A., & Clendenen, G. (2009). Business Mathematics (11th ed.). MA: Pearson Education, Inc., Chapters 10.