SAVING AND INVESTMENTS

Front

What is the formula to calculate Return on Investment (ROI)?

Back

ROI = (Net Profit / Cost of Investment) x 100

Front

Define Fixed Deposit Account.

Back

A Fixed Deposit Account is a savings account where money is deposited for a fixed term and cannot be withdrawn before maturity without penalty.

Front

What is Compounding Interest?

Back

Compounding interest is interest that is added to the principal of an account, allowing interest to be earned on previously accumulated interest.

Front

If a house costs RM 100,000 and you put 20% down, how much is the down payment?

Back

The down payment is RM 20,000.

Front

What type of investment typically provides returns in the form of rent?

Back

Real estate investments provide returns in the form of rent.

Front

What is the difference between saving and investing?

Back

Saving is setting aside money for future use, typically in a low-risk account, while investing involves purchasing assets with the expectation of generating a return.

Front

What is the purpose of a savings account?

Back

A savings account is designed to hold money that is not intended for immediate use, allowing it to earn interest.

Front

What does it mean to diversify investments?

Back

Diversifying investments means spreading money across various assets to reduce risk.

Front

What is the significance of the maturity date in a Fixed Deposit Account?

Back

The maturity date is when the investment period ends, and the principal plus interest can be withdrawn.

Front

How do you calculate the total return from an investment?

Back

Total Return = (Final Value of Investment - Initial Value of Investment + Income) / Initial Value of Investment x 100