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denis-greek [22]
3 years ago
13

John receives $1,000 as a graduation gift from his grandparents. Rather than spend it, he decides to invest it in a two-year bon

d that earns 3% simple interest. John doesn't need access to the money right away because he wants to save it for when he's ready to buy a home in about 10 years. Is the bond a wise investment for John? Why or why not?
Mathematics
1 answer:
Nataliya [291]3 years ago
3 0
<span>The bond doesn’t sound like it’s a wise investment for John because he’s using a two-year bond for something he’s not going to access for 10 years. </span><span>John could find a way to invest his money into a 10-year bond with any form of interest.

Hope this helps.</span>
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