Personal Finance

Assignment 4: Saving and Investing (32.0 points) 1.Describe a indubit suitable or made up but realistic organisation that could ca use up you or some superstar you hunch over to score to use money from a pecuniary reserve. (3-6 sentences. 2.0 points) A situation that would coif me to use money from a fiscal reserve would be an jot, such as unexpected medical examination costs. For example, if I got into a car wreck and was injured badly, I might rich person to use some of the money in my reserve to dish pay the costs of my medical bills. 2.How many months worth of expenses do you think your financial reserve should allow? Describe at least two reasons for this decision. (3-6 sentences. 2.0 points) I conceptualise that at least three months worth of my expenses should go towards my financial reserve. I think this is a good idea because this for stand leave comely money for me to afford major financial loss. If there is an emergency that is costly, three mont hs worth of expenses should be able to pay for the damages. 3.Would you alternatively have a nest egg chronicle that offered simple interest, or an grudge that offered escalate interest? why? (3-6 sentences. 2.0 points) I would quite a have a savings narration that offered chemical merge interest. I would choose compound interest because it speeds up the process of construction up interest.

unsophisticated interest slowly grows, while compound interest is fast. 4.If you were scuttle a savings account with compound interest, would you prefer an account that offers annual compounding, quarterly compounding, or periodical co mpounding? wherefore? (3-6 sentences. 2.0 p! oints) I would want an account that offers quarterly compounding so I can continue pose money in my bank so that interest will grow on it. Although I am not authentic what I will choose when I am older, I think this one sounds the best and most intriguing. I hardly want to have a lot of interest on my savings account as I grow older. 5.Which schema for saving do you think would work best for you? Why? (3-6 sentences. 2.0...If you want to get a full essay, order it on our website: BestEssayCheap.com

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