Question: Find the following values using the Internet. Remember to state where the information was found and, also, describe the items chosen Find a two-year G.I.C.
Find the following values using the Internet. Remember to state where the information was found and, also, describe the items chosen
- Find a two-year G.I.C. rate from any financial institution.
- The cost of a used car and the cost of a new car.
- The price to spend two weeks on vacation in the United States and then outside of the continent.
- Three years' worth of tuition at a college or university near your current location and another further away.
Create a financial report for you to follow for the next ten years outlining the following items:
| Part A: Post-Secondary Education | |
| In this section, find how much you would need today to pay for the two post-secondary institutions using the G.I.C. interest rate. Compare the two values and state some conclusions. | |
| Part B: After School | |
| In this section, calculate the amount needed in four years to buy the new car and the used car if the price increases by 2.4% yearly. Since most people do not pay cash for their car, calculate how much monthly it would cost for a 3-year loan at 3%/a compounded monthly for the new car and at 7%/a compounded monthly for the used car. Would you buy a used car or a new one? Explain. | |
| Part C: Vacation Time | |
| After much hard work, you finally decide to enjoy a vacation. Calculate the monthly payments that must be made to go on the vacation in two years for both locations. Assume that the travel agency charges 8%/a compounded monthly. Which one would you choose? Explain. | |
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