Assignment 4
Assignment 4
(32 points)
Assignment 4: Saving and Investing
Instructions
Save this file in your course folder, and name it with Assignment, the section number, and your first initial and last name. For example, Jessie Robinson's assignment for Section 1 would be named Assignment1JRobinson.
Type the answers to the assignment questions below. Use complete sentences unless the question says otherwise. You will have more than one day to complete an assignment. At the end of each day, be sure to save your progress.
Review Lesson 4 of the Course Overview for instructions about turning in your assignments.
Assignment Questions
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)
A situation that would cause me to use money from a financial reserve would be an emergency, such as unexpected medical costs. For example, if I got into a car wreck and was injured badly, I might have to use some of the money in my reserve to help pay the costs of my medical bills.
2. How many months' worth of expenses do you think your financial reserve should include? Describe at least two reasons for this decision. (3-6 sentences. 2.0 points)
I believe that at least three months worth of my expenses should go towards my financial reserve. I think this is a good idea because this will leave enough money for me to afford major financial loss. If there is an emergency that is costly, three months worth of expenses should be able to pay for the damages.
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. 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
(32 points)
Assignment 4: Saving and Investing
Instructions
Save this file in your course folder, and name it with Assignment, the section number, and your first initial and last name. For example, Jessie Robinson's assignment for Section 1 would be named Assignment1JRobinson.
Type the answers to the assignment questions below. Use complete sentences unless the question says otherwise. You will have more than one day to complete an assignment. At the end of each day, be sure to save your progress.
Review Lesson 4 of the Course Overview for instructions about turning in your assignments.
Assignment Questions
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)
A situation that would cause me to use money from a financial reserve would be an emergency, such as unexpected medical costs. For example, if I got into a car wreck and was injured badly, I might have to use some of the money in my reserve to help pay the costs of my medical bills.
2. How many months' worth of expenses do you think your financial reserve should include? Describe at least two reasons for this decision. (3-6 sentences. 2.0 points)
I believe that at least three months worth of my expenses should go towards my financial reserve. I think this is a good idea because this will leave enough money for me to afford major financial loss. If there is an emergency that is costly, three months worth of expenses should be able to pay for the damages.
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. 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