Read the following scenarios, then decide which option is best and why.

Susan and Jose rent an apartment and have been saving for a house. They now have $10,000 in the bank. Susan owes $4,000 on a low-interest credit card; Jose owes $4,500 on his car. Susan wants to pay the credit card and car off to eliminate the debt. Jose wants to keep the cash in the bank and continue saving for the house. What are the pros and cons of each ones argument?

Jack is a 40-year-old construction worker. He makes $33,500 per year. He only saves 5% of his salary per year since it is all he feels he can afford. His friend Joe suggests that he invest his money conservatively so that it wont lose as much value if the market takes a nosedive. His other friend Jim thinks that investing aggressively with high risk is the way to go since Jack has several years to work to make up for any losses. What do you suggest to Jack?

***Note: ALL homework are scenarios and exercises that require your own opinion. they should be answered in at least 4-5 complex sentences using book terminology along with your opinion. These assignments should show that you have read, understood, and can apply chapter concepts.