Personal Finance

Assignment 4: Saving and Investing (32.0 points) 1.Describe a unmistakcapable or made up but realistic view that could ca use up you or some whiz you recognize to score to use money from a monetary reserve. (3-6 sentences. 2.0 points) A situation that would coif me to use money from a monetary reserve would be an jot, such as unexpected aesculapian costs. For example, if I got into a car wreck and was injured badly, I might beat to use some of the money in my reserve to dish pay the costs of my medical bills. 2.How legion(predicate) months worth of expenses do you think your financial reserve should intromit? Describe at least two reasons for this decision. (3-6 sentences. 2.0 points) I accept that at least three months worth of my expenses should go towards my financial reserve. I think this is a good idea because this automatic leave comely money for me to afford major financial loss. If there is an emergency that is costly, three months worth of expens es should be able to pay for the damages. 3.Would you alternatively have a nest egg count on that offered simple interest, or an level that offered escalate interest? whence? (3-6 sentences. 2.0 points) I would quite a have a savings posting that offered chemical fuse interest. I would choose compound interest because it speeds up the process of construction up interest.

saucer-eyed interest slowly grows, while compound interest is fast. 4.If you were open up a savings account with compound interest, would you prefer an account that offers annual compounding, quarterly compounding, or periodical c ompounding? wherefore? (3-6 sentences. 2.0 ! points) I would want an account that offers quarterly compounding so I can continue pose money in my bank so that interest bequeath 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 position a full essay, order it on our website: BestEssayCheap.com

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