they will purement on a new car that Summary: Banking and Interest Rates 144 The Sampsons-A Continuing Case: Chapter 5 NAME DATE MyLab Finance Recall that the Sampsons would like to save a total of $1,000 per month. They notice that their local bank offers the certificate of deposit (CD) rates listed in determine if they should invest in CDs, and if so, which CDs will best suit their goals. The Sampsons are saving a for Sharon within a year. They hope to save money each month for their children's college education, which begins twelve years from now. Maturity Annualized Interest Rate (%) 1 month 3 months 6 months year years 5 years 28 years XO 10 years farin down 1. Advise the Sampsons on the maturity to select if they decide to invest their savings in a CR for a down payment on disadvantages of the maturity that you recommend the Sampsons use to save for the down payment on a car. 2. Advise the Sampsons on the maturity to select if they decide to invest their savings in CDs for their children's Sducation. Discuss the advantages and disadvantages of the maturity that you recommend the Sampsons use to save for their children's education needs. 3. If you thought that interest rates were going to rise in the next few months, how might this affect the advice that you give the Sampsons about investing in CDs with short-term versus long- term maturities? they will purement on a new car that Summary: Banking and Interest Rates 144 The Sampsons-A Continuing Case: Chapter 5 NAME DATE MyLab Finance Recall that the Sampsons would like to save a total of $1,000 per month. They notice that their local bank offers the certificate of deposit (CD) rates listed in determine if they should invest in CDs, and if so, which CDs will best suit their goals. The Sampsons are saving a for Sharon within a year. They hope to save money each month for their children's college education, which begins twelve years from now. Maturity Annualized Interest Rate (%) 1 month 3 months 6 months year years 5 years 28 years XO 10 years farin down 1. Advise the Sampsons on the maturity to select if they decide to invest their savings in a CR for a down payment on disadvantages of the maturity that you recommend the Sampsons use to save for the down payment on a car. 2. Advise the Sampsons on the maturity to select if they decide to invest their savings in CDs for their children's Sducation. Discuss the advantages and disadvantages of the maturity that you recommend the Sampsons use to save for their children's education needs. 3. If you thought that interest rates were going to rise in the next few months, how might this affect the advice that you give the Sampsons about investing in CDs with short-term versus long- term maturities
