Percentage Investments

Will you choose the right investments to secure a 10 000$/£/€ investment from your parents?

Sometimes our intuition/gut feeling for numbers can lead us astray.

What's the best way your parents could help to make your life easier? i'm sure you can think of many ways. . ! One way would be to invest 10 000$/£/€ when you were aged 10yrs old (giving them 10yrs to save up!) to use as a deposit on (maybe) your first house 20yrs later aged 30.

However, this is a lot of money and your parents don't want you to waste it! Being worldly wise, your parents know that it's best not to put all their eggs in one basket, so they want to spread their money across a range of companies. They have decided to give you a series of five financial tests to check your business acumen. If you choose the best investment option in three or more out of the five investment scenarios below, your parents have agreed to invest 10 000$/£/€ on your behalf!

Resources & Gameplay

In pairs decide on which of the three options you are going to invest in for each of the five scenarios described below.

Then in your groups, compare your choices with classmates, give arguments and counter arguments and see if you can come to an agreement on which options are the best to invest in - based on the information given below (not based on which company you think is likely to do best over the next 20yrs - you can share your reasoning on that issue with the whole class at the end of the lesson).

Investment 1

Adidas: For every 40€ you invest they promise to pay you interest of 2.8€ at the end of each year

EMI Record Label: For every 200€ you invest they promise to pay you interest of 10€ at the end of each year

Facebook: For every 1€ you invest they promise to pay you interest of 0.09€ at the end of each year

Investment 2

OkCupid: For every 2.50€ you invest they promise to pay you interest of 0.32€ at the end of each year

Microsoft Xbox: For every 400€ you invest they promise to pay you interest of 24€ at the end of each year

Lego Toy Makers: For every 1.50€ you invest they promise to pay you interest of 0.15€ at the end of each year

Investment 3

Nike: For every 24€ you invest they promise to pay you interest of 1€ at the end of each year

Nintendo Wii: For every 180€ you invest they promise to pay you interest of 14.4€at the end of each year

Citroën Cars: For every 500€ you invest they promise to pay you interest of 25€ at the end of each year

Investment 4

Sega Dreamcast: For every 150€ you invest they promise to pay you interest of 11.25€ at the end of each year

Snickers (MarsTM): For every 0.50€ you invest they promise to pay you interest of 0.06€at the end of each year

Sony Music Entertainment: For every 400€ you invest they promise to pay you interest of 22€ at the end of each year

Investment 5

Samsung: For every 250€ you invest they promise to pay you interest of 10€ at the end of each year

Twitter shares: For every 13€ you invest they promise to pay you interest of 1.43€at the end of each year

Volkswagen: For every 900€ you invest they promise to pay you interest of 81€ at the end of each year

Description

  • For each of the five investment plans above, you can do whatever working out/calculations, reasoning you want to try and work out which would be the best investment plan.
  • In pairs decide on which of the three options you are going to invest in for each of the five scenarios described below.

  • Then get together in a group of two or more pairs (your teacher will tell you how many to a group) to compare your choices and decide which options are the best investment - based on the information given below (not based on which company you think is likely to do best over the next 20yrs - you can share your reasoning on that issue with the whole class at the end of the lesson).

  • Once each group has publicly declared their choices, your teacher will run the simulations for each scenario to reveal the winner.

  • Your teacher may choose to run do one scenario at a time with pairs and groups making their choices and the teacher running the associated simulation before moving on to the next investments scenario.

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Comments 1

Mala Dorset 21 September 2016 - 09:51

Is this interest simple or compound?


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