Personal Finance

Assignment 4: Saving and Investing (32.0 points) 1.Describe a discernible or made up but realistic situation that could ca use up you or some unity you know to score to use money from a fiscal reserve. (3-6 sentences. 2.0 points) A situation that would coif me to use money from a pecuniary reserve would be an jot, such as unexpected medical costs. For example, if I got into a car wreck and was injured badly, I might energise to use some of the money in my reserve to dish pay the costs of my medical bills. 2.How galore(postnominal) months worth of expenses do you think your pecuniary reserve should overwhelm? Describe at least two reasons for this decision. (3-6 sentences. 2.0 points) I trust that at least three months worth of my expenses should go towards my financial reserve. I think this is a good idea because this impulsive leave comely money for me to afford major financial loss. If there is an emergency that is costly, three months worth of expenses s hould be open to pay for the damages. 3.Would you alternatively have a nest egg forecast that offered simple interest, or an placard that offered escalate interest? accordingly? (3-6 sentences. 2.0 points) I would quite a have a savings placard that offered chemical complex interest. I would choose compound interest because it speeds up the process of construction up interest.

artless interest slowly grows, while compound interest is fast. 4.If you were possible action a savings account with compound interest, would you prefer an account that offers annual compounding, quarterly compounding, or periodical compounding? why? (3-6 sentences. 2.0 point! s) I would want an account that offers quarterly compounding so I can continue pose money in my bank so that interest testament 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 win a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper