Mauritius received a bonus check from his employer and wants to put it aside to use for a down payment on a house that he hopes to buy in 7 years.
What would be a good place for Mauritius to put his money in, knowing his timeline for this goal?
Choose 1 answer:
Choose 1 answer:
(Choice A) stocks or bonds
A
stocks or bonds
(Choice B) CDs (certificate of deposit)
B
CDs (certificate of deposit)
(Choice C) a bank account
C
a bank account
B) CDs (certificate of deposit)
CDs are a good option for Mauritius because they offer higher interest rates compared to a regular bank account. Additionally, CDs have a fixed term, such as 7 years, which aligns well with Mauritius' timeline for buying a house. This means he can deposit the bonus check into a CD and let it grow at a fixed interest rate for 7 years, ensuring that the money will be available when he needs it for a down payment on the house.