1.Janice Sanders plans on saving $12,000 for 3 years until she returns to college for her master's degree in personal financial planning. She would like to receive a fixed rate of return over that period. Which of the following would you recommend as the best place to put her money?

a.Bond mutual fund

b.Savings Account

c.3-year certificate of deposit

d.stock in G.E.

e.Both answer 1 and 2 are correct

2.Matt Bellamy wants to save $100,000 in 10 years.He has already deposited $2,500 into his brokerage account and will be putting more money in every year for 10 years.He thinks he can earn 5%.What can we say about his chances of meeting his goal?

a.He will likely reach his goal.

b.He will probably have much more than $100,000 at the end of 3 years.

c.He is unlikely to make his goal.

d.We cannot say much because we do not know how much he is planning on depositing each year.

e.None of the above.

3.Lonnie Lynn figures he needs to put $6,139 into a mutual fund today if he can earn 5% and wants it to grow to $10,000 in 10 years.How much would he need to put in if he could get a a.6% rate of return instead?

b.less than $6,139

c.$6,139

d.more than $6,139

e.cannot be determined because we do not have all the variables

none of the above