You have $2,000 and want to invest in two savings goals: a short-term goal (less than one year) of saving for textbooks during your first year of community college, and a longer-term goal (over 1 year) of saving for a car when you graduate from college. Use the information in the chart below to explain how much you would choose to save for each goal, where you would save it, and why. When explaining your choices, be sure to consider the liquidity of each investment, the potential for interest earned, and any potential fees or penalties. Savings Account
0.09% APY
No minimum deposit

MMA
1.05% APY
$500 minimum deposit

24-Month CD
2.9% APY
$250 minimum deposit

US Savings Bonds (Series EE)
0.1%
$25 minimum purchase

$15 fees for
any withdrawals in
excess of 6 per month

$15 fees for
any withdrawals in
excess of 6 per month

Penalty for early
withdrawal is 3 months
of interest or $25,
whichever is greater

Cannot redeem during
first 12 months;
before five years,
loss of 3 months of interest

Short Writing

Ineed . read this textbook passage. select the five (5) statements which are most logically supported by the given information. what would you do if you won ten million dollars in a lottery? your first reaction might be, “i’d spend the rest of my life on the beach (or skiing or traveling).” but in all likelihood you, like most other people who receive financial windfalls,would seek some kind of work eventually. a variety of motives keeps people working,even when they don’t need a paycheck to survive. if you’ve ever worked as a volunteer, you know that someone can be more satisfying than receiving pay. work also provides a sense of identity. one man aged 81 said, “i’ve been in the fabric business since i was a kid, and i still get a kick out of it." studies suggest that rats, pigeons, and children sometimes work to gain rewards,even if they can get the same rewards without working. one researcher wrote the following on the subject: rats will run down an alley tripping over hundreds of food pellets to obtain a single, identical pellet in the goal box, . . and pigeons will peck a key . . to get exactly the same food that is freely available in a nearby cup. given the choice of receiving marbles merely by waiting a certain amount of time for their delivery, children tend to prefer to press a lever . . to get the same marbles. 1. serving a purpose is satisfying. 2. it is not so lucky to win a large amount of money in a lottery. 3. endless “vacationing” eventually becomes dissatisfying. 4. the pay we receive is unimportant. 5. most people try to work as little as possible. 6. people, rats, and pigeons enjoy the challenges and interaction that work offers. 7. it generally feels better to achieve something than to be given something. 8. people who don’t retire continue to work only because they need the money. 9. most people who work as volunteers resent the fact that they are not paid for their work. 10. work can be its own reward.