Chat with us, powered by LiveChat PERSONAL FINANCIAL LITERACY : A TIME TO SPEND, A TIME T | WriteDen

PERSONAL FINANCIAL LITERACY : A TIME TO SPEND, A TIME T

PERSONAL FINANCIAL LITERACY : A TIME TO SPEND, A TIME TO SAVE : 02.04 : INTEREST RATES AND INFLATION

Put Your Money Where Your Mouth Is

For your assignment, you will compare savings options and make a recommendation as to which option would earn the most interest after taxes and inflation. 

Part One—Select Two Savings Options

Select one savings option from the Simple Interest column and one from the Compound Interest column to compare: 

Simple InterestCompound InterestOption A—earns 2.5% simple interest per yearOption D—earns 2% compound interest per yearOption B—earns 3% simple interest per yearOption E—earns 2.5% compound interest per yearOption C—earns 3.5% simple interest per yearOption F—earns 3% compound interest per year

Part Two—Crunch the Numbers

Calculate the after-tax real rate of return earned on $5,000 by your selected savings options over a period of three years. This will help your comparison. Remember, the real rate of return includes taxes on the interest earned and inflation. For this assignment, use a tax rate of 10% and an average cumulative rate of 3%.

You will submit your calculations as part of your assignment. Need help? Check out the steps to calculate the after-tax real rate of return:

Step 1: Calculate the interest earned

Step 2: Calculate the taxes on the interest earned

Step 3: Calculate the inflation on the interest earned

Step 4: Find the after-tax real rate of return

Part Three—Make Your Recommendation 

Compile your calculations and make a recommendation. Of the savings options that you chose, which would you recommend a depositor use? Use complete sentences to explain why one option would be more beneficial than the other based on the after-tax rate of return.

What to Submit

Submit your selected savings options, calculations, and recommendation to 02.04 Interest Rates and Inflation.

ASSESSMENT

  1. Complete the reading and activities.
  2. Review the rubric before completing and submitting this activity.
  3. Complete parts one, two, and three. 
  4. Submit your work to 02.04 Interest Rates and Inflation.

Rubric

    HOW OUR WEBSITE WORKS

    Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of 
    HIGH QUALITY & PLAGIARISM FREE.

    Step 1

    To make an Order you only need to click ORDER NOW and we will direct you to our Order Page at WriteDen. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
     Deadline range from 6 hours to 30 days.

    Step 2

    Once done with writing your paper we will upload it to your account on our website and also forward a copy to your email.

    Step 3
    Upon receiving your paper, review it and if any changes are needed contact us immediately. We offer unlimited revisions at no extra cost.

    Is it Safe to use our services?
    We never resell papers on this site. Meaning after your purchase you will get an original copy of your assignment and you have all the rights to use the paper.

    Discounts

    Our price ranges from $8-$14 per page. If you are short of Budget, contact our Live Support for a Discount Code. All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.

    Please note we do not have prewritten answers. We need some time to prepare a perfect essay for you.