Luke has $700 that he doesn’t need to spend at the moment. However, when he has $1,500 he would like to buy a car. He’s planning

Question

quester [9]

3 years ago

13

Luke has $700 that he doesn’t need to spend at the moment. However, when he has $1,500 he would like to buy a car. He’s planning

to have all the money within the next six months.

Advanced Placement (AP)

1 answer:

SpyIntel [72] · Answer 1 · 2022-08-16T04:36:14+03:00

Answer:

SAVINGS ACCOUNT

Explanation:

P.S - The exact question is -

Given - Luke has $700 that he doesn’t need to spend at the moment. However, when he has $1,500 he would like to buy a car. He’s planning to have all the money within the next six months.

Solution -

Luke's circumstance makes SAVINGS ACCOUNT as the most appropriate financial asset.

Given from the list as he can gain more interest than checking account/cash and savings account will be more liquid than CD ( Certificates of deposit) and his balance is too low for investing in the money market.