Question
How do income, growth, and liquidity affect the choice of an investment? Why do investors purchase stocks? Should you switch policies? Beverly and Kyle Nelson
How do income, growth, and liquidity affect the choice of an investment?
Why do investors purchase stocks?
Should you switch policies?
Beverly and Kyle Nelson currently insure their cars with separate companies paying $450 and $375 a year. If they insured both cars with the same company, they would save 10 percent on the annual premiums. What would be the future value of the annual savings over ten years based on an annual interest rate of 6 percent?
From the investment alternatives described in chapters, choose two specific investments that you feel would help an individual who is 35 years old, divorced, and earns $20,000 a year begin an investment program. Assume that this individual has $30,000 that can be invested at this time. As part of your recommendation, compare each of your investment suggestions on the factors of safety, risk, income, growth, and liquidity.
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