Part A:
Describe two possible financial goals for which you may require $12,000. Classify each as a want or need. Do research to ensure that amount is enough for your goal.
Part B:
Create and describe three possible investments to reach your goal within five (5) years. Investment 1 is a simple interest investment with 3% annual interest. How much would you need to invest at the beginning? Investment 2 is a compound interest investment, with 3% annual interest compounded monthly. How much would you need to invest at the beginning?
Investment 3 is a regular deposit in an account that earns 3% compound interest, compounded once per year. How much do you need to deposit, and how often will you deposit it, to reach it Part C:
Calculate and describe the total interest earned on each of your three investments. Explain your thinking and show your work.