F3 CH 3 CONSUMER MATHEMATICS (3.1 SAVING & INVESTMENT)

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What is Return on Investment (ROI)?

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ROI is a financial metric used to evaluate the profitability of an investment, calculated as (Net Profit / Cost of Investment) x 100.

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How do you calculate ROI?

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ROI = (Selling Price - Purchase Price) / Purchase Price x 100.

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What is a dividend?

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A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits.

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What is a fixed deposit account?

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A fixed deposit account is a type of savings account where money is deposited for a fixed term at a fixed interest rate.

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What is a current account?

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A current account is a type of bank account that allows for frequent deposits and withdrawals, often used for business transactions.

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What is a savings account?

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A savings account is a deposit account held at a financial institution that provides a modest interest rate.

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What is the purpose of saving money?

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The purpose of saving money is to set aside a portion of income for future use, emergencies, or investments.

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What is the difference between saving and investing?

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Saving is setting aside money for short-term needs, while investing is using money to purchase assets with the expectation of generating a profit.

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What is the meaning of shares in finance?

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Shares represent ownership in a company and entitle the shareholder to a portion of the company's profits.

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What is the interest rate?

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The interest rate is the percentage of a loan or deposit that is charged as interest to the borrower or paid to the depositor.