SOPHIA'S FINANCIAL PLAN

Sophia, 23, completed her Bachelor of Science degree one year ago. The major cost of her tuition and hooks was covered by a scholarship.

Through wise planning, she was able to save $25,000 from her part-time joh. Acting on a suggestion from her parenta, Sophia met with a

financial planner, who advised her to invest her money in low-risk bonds and guarantced investment certificates (GICs).

Sophia works in an office in Toronto, Ontario, and she carns $55,000 a year. In approximatoly throe years. she would liko to return to

school and start her master's degree. Then she would like to buy a housc. Sophia wants to live on her salary and invest $3,000 annually

each year for 3 years as well as the $25.000 she has ulready saved for her education and future home.

QUESTIONS

1. Tow did Sophia benefit from her parents" advice und her own Onancial plunning?

2. What decisions does Sophia need to make regarding her future*

3. How could various personal and economic factors influence Sophia's financial planning"

4. What would be the value of Sophias $25 000 and $5,000 annual savings be in three years If it cared on annual interest rate of 1 5

percent?

5. Conduct a Web scaron to abtain intormation tha: Sophia may find uselu!