Posted by jesse on Tuesday, October 6, 2009 at 2:43am.
What might be the savings goal for a person who buys a fiveyear CD paying 4.67 percent instead of an 18month savings certificate paying 3.29 percent?
i just do not get this

per.finance  Writeacher, Tuesday, October 6, 2009 at 8:49am
This is not my field, but I'll give you some possible ideas.
You are describing someone who is willing to have his money tied up for a longer period of time (a 5yr CD) for a higher rate of interest, not a person who wants a faster turnaround for a lower rate of interest. Therefore, this person might be 
**a person who will retire in 56 years.
**a person who has a child who will enter college in 56 years.
**a person who plans to look for a home to buy in 56 years.
**etc. (What are other financial goals people have?)
Answer This Question
Related Questions
 Algebra  A man invests his savings in two accounts, one paying 6 percent and ...
 Arithmetic progression  A person buys national savings certificate of values ...
 PERSONAL FINANCE  a SAVER HAS A $1000 ON DEPOSIT IN AN ACCOUNT EARNING 3 ...
 Business Finance  Your firm is contemplating the purchase of a new $869,500 ...
 finance  A 45yearold woman decides to put funds into a retirement plan. She ...
 Matyh  Victor Malaba has a net income of $1,240 per month. If he spends $150 ...
 a.p.  a perso buys national savings certificate values exceeding of the last ...
 Math  Betsy, a recent retiree, requires $6000 per year in extra income. She has...
 COLLEGE ALGEBRA  Sue, a recent retiree, requires $6,000 per year in extra ...
 Math  A man invests his savings in two accounts, one paying 6% and the other ...
More Related Questions