Personal financial literacy | PERSONAL FINANCIAL LITERACY

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

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 4: Find the after-tax real rate of return

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

Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.

Over the years, our Acme Homework has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keep up with the rising Academic Trends.

Affordable Prices

Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.

On-Time delivery

We pay strict attention on deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.

100% Originality

At Essay USA, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.

Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email: support@acmehomework.com.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
\$0.00

How it works?

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Our Services

Essay USA has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.

Essay Writing Services

At Essay USA, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.