Jessie is saving for college. She has made $3000 by working this summer at Thrifty's. She knows she can continue to save during the school year because she will continue to work part time. She has two years before college starts and the interest offered to her is 3.25% per year compounded annually. What option is a better fit for Jessie? Discuss your conclusion by explaining the pros and cons of your choice. Option A: She spends $500 on a camping trip at the end of the summer and puts $2500 into a savings account. She adds $200 a month to the savings account for 2 years. Option B: She puts all $3000 in her summer savings into the account and saves $150 a month. Total value Initial Investment Additional money Interest Earned invested Option A Option B Your advice for Jessie: Pros Cons

Jessie is saving for college. She has made $3000 by working this summer at Thrifty's. She knows she can continue to save during the school year because she will continue to work part time. She has two years before college starts and the interest offered to her is 3.25% per year compounded annually. What option is a better fit for Jessie? Discuss your conclusion by explaining the pros and cons of your choice. Option A: She spends $500 on a camping trip at the end of the summer and puts $2500 into a savings account. She adds $200 a month to the savings account for 2 years. Option B: She puts all $3000 in her summer savings into the account and saves $150 a month. Total value Initial Investment Additional money Interest Earned invested Option A Option B Your advice for Jessie: Pros Cons

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter13: Investment Fundamentals

Section: Chapter Questions

Problem 3FPC

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