per.finance
posted by jesse .
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

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?)
Respond to this Question
Similar Questions

Math
Betsy, a recent retiree, requires $6000 per year in extra income. She has $47,000 to invest and can invest in Brated bonds paying 15% per year or in a Certificate of Deposit (CD) paying 6% per year. How much money should be invested … 
PERSONAL FINANCE
a SAVER HAS A $1000 ON DEPOSIT IN AN ACCOUNT EARNING 3 PERCENT INTEREST. dURING THIS YEAR THE INFLATION RATE WAS 5 PERCENT. AFTER ONE YEAR EHAT IS THE BUYING POWER OF THE AMOUNT IN SAVINGS FOR THAT PERSON? 
finance
A 45yearold woman decides to put funds into a retirement plan. She can save $2,000 a year and earn 9 percent on this savings. How much will she have accumulated if she retires at age 65. At retirement how much can she withdraw each … 
Business Finance
Your firm is contemplating the purchase of a new $869,500 computerbased order entry system. The system will be depreciated straightline to zero over its 5year life. It will be worth $84,600 at the end of that time. You will be able … 
COLLEGE ALGEBRA
Sue, a recent retiree, requires $6,000 per year in extra income. She has $50,000 to invest and can invest in Brated bonds paying 15% per year or in a certificate of deposit (CD) paying 7% per year. How much money should be invested … 
Math
A man invests his savings in two accounts, one paying 6% and the other paying 10% simple interest per year. He puts twice as much in the loweryielding account because it is less risky. His annual interest is $11000 dollars. How much … 
Algebra
A man invests his savings in two accounts, one paying 6 percent and the other paying 10 percent simple interest per year. He puts twice as much in the loweryielding account because it is less risky. His annual interest is 418 dollars. … 
Matyh
Victor Malaba has a net income of $1,240 per month. If he spends $150 on food, $244 on a car payment, $300 on rent, and $50 on savings, what percent of his net income can he spend on other things? 
Arithmetic progression
A person buys national savings certificate of values exceeing of the last years purchase by Rs. 100. after 12years he finds that the total value of certificate purchased by him is Rs. 7,200 find the value of the certificate purchased … 
a.p.
a perso buys national savings certificate values exceeding of the last years purchase by ₨.100.after 12 year he finds that the total value of certificate purchased by him ₨.7,200. find the value of the certificate purchase by him …