breannaphillippo
Answered

Westonci.ca is your go-to source for answers, with a community ready to provide accurate and timely information. Get the answers you need quickly and accurately from a dedicated community of experts on our Q&A platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

Norm has $15,000 to deposit. His daughter is a junior in high school and plans to go to college. Recommend the best way for Norm to store his money. Note that the interest rates are expressed on an annual basis.
a.
A four-year CD paying 4.8% interest, with a substantial penalty for early withdrawal
b.
An online savings account offering 2.3% interest
c.
A money market account paying 3.5% interest, renewable for three-month commitments
d.
A checking account with no monthly fees

Sagot :

unicorndaniella11

Answer:

A money market account paying 3.5% interest, renewable for three-month commitments.

cGillette21

The best way for Norm to store his money is through C. A money market account paying 3.5% interest, renewable for three-month commitments. Even though a four-year CD offers a higher interest at 4.8%, the fact that there is a substantial penalty for early withdrawal is a negative factor for Norm. His daughter needs the money after 2 years since she is already a junior in high school.

Thanks for using our service. We aim to provide the most accurate answers for all your queries. Visit us again for more insights. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.