Posted by **jesse** on Tuesday, October 6, 2009 at 2:43am.

What might be the savings goal for a person who buys a five-year CD paying 4.67 percent instead of an 18-month 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 5-yr 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 5-6 years.

**a person who has a child who will enter college in 5-6 years.

**a person who plans to look for a home to buy in 5-6 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 ...
- 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 45-year-old 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 ...
- Math - Betsy, a recent retiree, requires $6000 per year in extra income. She has...
- COLLEGE ALEGBRA - 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 ...
- algebra 1 - MArta has $6000 to invest. She puts x dollars of this money into a ...
- algebra..urgent!!!! - MArta has $6000 to invest. She puts x dollars of this ...

More Related Questions