9/16/10
1. Why did Milton think his chocolate candy would sell?
It was a non-expensive chocolate for everyday people, and he believed that the flavor of caramel every day was too rich.

2. Where did he get the money to start making chocolate?
Hershey sold his Lancaster Caramel Company so he could create a plant to produce his chocolate.
3. What type of company did Hershey have before he incorporated?
Before building his chocolate corporation, Milton had a caramel producing company.

4. What benefits do you think Milton gained from forming a corporation?
He was able to sell stocks, and he was able to separate the company from him. It was almost its own person, so when he passed away, the company would live on.

5. Why would people today want to invest in the Hershey Company?
It has not failed at any time and it is well known around the world.

AT&T
Campbell's Soup
GIANT Food Stores
Wawa
Gamestop
Apple
Walmart
BP
PPL
Progressive

11/2/10

1. Why might someone close to retirement be more interested in the dividends paid by investments than a young investor?
They aren't getting as much of an income, so anything extra would be helpful and welcome.
2. What other measures of a company’s “health” would you like to have before deciding to invest in the company?
How much you've heard about them, how reputable the company is. How well known the company is, their history, and if they will go out of business or not.
Compound Interest:
Part 1: Using the following table, determine the value of a $1,000 investment after three years when interest compounds annually. Use the supplied interest rates to compute values. (Round to the nearest whole number. Show your work.

* 72/ interest rate = years to double money (i.e. 72/3 = 24 years.)

Example: Year 1: $1,000 x 3% (.03) = 30 + 1000 =


1. Why might someone close to retirement be more interested in the dividends paid by investments than a young investor?
2. What other measures of a company’s “health” would you like to have before deciding to invest in the company?

Year 2: 1,030 x .03 = 31 + 1,030 = 1, 061
Year 3: 1, 061 x .03= 1,061 = 1,093 (Three year total value)
Years to double: 72 divided by 3 =24.

Amount Invested
Interest Rate
Three Year Total Value
Years to Double (Rule of 7
$1000
3%


$1000
5%


$1000
8%


$1000
10%



Part 2: Using the following table, determine the value of a $1,000 investment after three years, 5, 10, and 15 years when the interest rate remains the same.

Amount Invested Interest Rate Length of...
Interest Rate
Length of Investment
Amount Earned
$1000
6%
3 years

$1000
6%
5 years

$1000
6%
10 years

$1000
6%
15 years



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