3. Would you rather have a savings account that offered simple interest, or an account that offered compound interest? Why? (3-6 sentences. 2.0 points) An account that offered compound interest.
3. Would you rather have a savings account that offered simple interest, or an account that offered compound interest? Why? (3-6 sentences. 2.0 points) I would rather have a savings account that offered compound interest.
4. If you were opening a savings account with compound interest, would you prefer an account that offers annual compounding, quarterly compounding, or daily compounding? Why? (3-6 sentences. 2.0 points) I would prefer annual compounding because it seems
Describe a real or made up but realistic situation that could cause you or someone you know to have to use money from a financial reserve. (3-6 sentences. 2.0 points) * If someone were to have a sudden, serious illness that required a long hospital stay with large medical bills and left them unable to work, they would have to use money from a financial reserve like a savings account or a 401k plan to pay the bills. 2. How many months' worth of expenses do you think your financial reserve should include?
Why? I would rather have a savings account that offered compound interest. I would choose compound interest because it speeds up the process of building up interest. Simple interest slowly grows, while compound interest is fast 4. If you were opening a savings account with compound interest, would you prefer an account that offers annual compounding, quarterly compounding, or daily compounding?
Assignment 4: Saving and Investing (32.0 points) 1. Describe a real or made up but realistic situation that could cause you or someone you know to have to use money from a financial reserve. (3-6 sentences. 2.0 points) If someone were to have a sudden, serious illness that required a long hospital stay with large medical bills and left them unable to work, they would have to use money from a financial reserve like a savings account or a 401k plan to pay the bills. 2.
| The idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. Provided money can earn interest, any amount is worth more the sooner it is received (“Time Value of Money,” n.d.). | Provide a real-world example for the time value of money. | An example would be depositing money into a savings account now and letting it earn interest. This amount of money will be worth more later because it will earn interest.
Bonds are not better than GIC(s). Bonds offer lower interest rate, so low that it is better to just invest our money in a TD Savings Account. Mostly investors do not even consider Bonds as there more much better investment opportunities. GIC(s) offer more interest rates, more options and so there is more demand for GIC(s). 7) What is the most popular age group for buying GICs?
The student’s decision saves $811,249 by the first quarter that is well over target. This reduces the working capital shortfall and enables EHC to increase patient volume. The next decision to make is to decide between two loan options. The student selects loan option two that has a six-month total interest payment of $53,873 over option one that has a six-month total interest for $56, 589. Option two is the choice because the $2,716 savings difference in total interest from option two outweighs the $1,043 in interest savings from option one.
1. If you are borrowing money and paying interest, would you prefer an interest rate that compounds annually, quarterly, or daily? Why? (2-4 sentences. 1.0 points) If i had an account that had compounded interest rate i would pick compound interest daily because i would make more money that way.