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Why Wh do we need to In est? e Invest?

WORKBOOK: WORKBOOK : EXERCISE2

Exercise 2 Wh do we need to Invest? E i Why d d I ?

Q1.Whichofthefollowingtypesofinvestments haveprovidedthebestlongtermreturns? D.Stocks D Stocks

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Exercise 2 Wh do we need to Invest? E i Why d d I ?

Q2.Inthelongrunwhichtypeofinvestment providesthelowestreturns? E.Savings E Savings

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Exercise 2 Wh do we need to Invest? E i Why d d I ?

Q3.Whenyouhavepurchasedastock,youare essentially: C.Buyinganownershipinterestinthecompany C Buying an ownership interest in the company

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Exercise 2 Wh do we need to Invest? E i Why d d I ?

Q4.Tobeasuccessfulinvestoryouneedto: D.Havedonethoroughanalysis,disciplinewith yourinvestingprinciples&beguidedbythe your investing principles & be guided by the ruleof72

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Exercise 2 Wh do we need to Invest? E i Why d d I ?

Q5.UsingtheRuleof72,aninvestmentearning 20%perannumwoulddoubleinhowmany years? D.3.6years (72/20%) (72 / 20%)

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Exercise 2 Wh do we need to Invest? E i Why d d I ?

Q6.UsingtheRuleof72,aninvestmentearning 7.2%p.a.woulddoubleinhowmanyyears? C.10years C 10 years (72/7.2%)

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Exercise 2 Wh do we need to Invest? E i Why d d I ?

Q7.UsingtheRuleof72,RM10,000investedfor 10Yearsat7.2%p.a.wouldyield? B.RM20,000 B RM20 000

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Exercise 2 Wh do we need to Invest? E i Why d d I ?

Q8.UsingtheRuleof72,ifyouhadinvested RM20,000@16%p.a.for9yrshowmuch wouldyouhave? B.RM80,000

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Exercise 2 Wh do we need to Invest? E i Why d d I ?

Q9.UsingtheRuleof72,ifyouhadinvested RM20,000@16%p.a.for18yrshowmuch wouldyouhave? C.RM320,000

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Exercise 2 Wh do we need to Invest? E i Why d d I ?

Q10.UsingtheRuleof72,ifyouhadinvested RM25,000@12%p.a.for12yrshowmuch wouldyouhave? A.RM100,000

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Exercise 2 Wh do we need to Invest? E i Why d d I ?

Q11.Whichofthefollowingisatruestatement C.Theearlieryouinvest,themoremoneyIll haveinthefuture have in the future

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Exercise 2 Wh do we need to Invest? E i Why d d I ?

Q12.WarrenBuffettwasbornin1930,andhe startedBerkshireHathawayin1965,howold washewhenhestarted? C.35

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Step 1 My Radar & Tolls

Download Do nload CAGR Calculator Calc lato

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Step 1 Tools & Resources

Download CAGR Calculator

Step St 3 CAGR Calculator C l l t

Download Do nload CAGR Calculator Calc lato

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Right Click Save Target As or Save Link As

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Step St 4 O Open Spreadsheet S d h t

Download Do nload CAGR Calculator Calc lato

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Q13: RM409,216.58 Q13 RM409 216 58

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Exercise 2 Wh do we need to Invest? E i Why d d I ?

Q13.IfyouhadinvestedRM100andcompounded at20.3%peryearfor45years,howmuchwould nowhave? RM409,216.59

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