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kozerog [31]
3 years ago
14

You have $2,000 and want to invest in two savings goals: a short-term goal (less than one year) of saving for textbooks during y

our first year of community college, and a longer-term goal (over 1 year) of saving for a car when you graduate from college. Use the information in the chart below to explain how much you would choose to save for each goal, where you would save it, and why. When explaining your choices, be sure to consider the liquidity of each investment, the potential for interest earned, and any potential fees or penalties.
Savings Account
0.09% APY
No minimum deposit

MMA
1.05% APY
$500 minimum deposit

24-Month CD
2.9% APY
$250 minimum deposit

US Savings Bonds (Series EE)
0.1%
$25 minimum purchase

$15 fees for
any withdrawals in
excess of 6 per month

$15 fees for
any withdrawals in
excess of 6 per month

Penalty for early
withdrawal is 3 months
of interest or $25,
whichever is greater

Cannot redeem during
first 12 months;
before five years,
loss of 3 months of interest
SAT
2 answers:
Dvinal [7]3 years ago
7 0
I don’t understand what you question is?
Pavlova-9 [17]3 years ago
7 0

Answer:

First, I would choose the plan of the long term goal because long term goals are the most effective. Starting off, I would use my 2000 dollars and spend them evenly amoung textbooks and my other miscellanous because a car can come after once I finish school. So this will lead me to open an savings account because I can putt as much money as I want into my account and the 15 fee is cheap so I won't loose to much money towards my books and other college funds.

Explanation:

this is what I would do

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