Performance task 1

Part 1

You are a financial planner Yassa Razaul and you work for MCI Financial Planning Pty Ltd. Your client Joan Jacques is a high net worth individual. She has $1,000,000 and she wishes to invest the full amount in a term deposit for the duration of five years. The client wishes to have all their interest paid out on maturity.

Using internet research, you must compare the advantages and disadvantages of three different retail term deposits on the current Australian market. The products can include banks and non-banks. You must communicate the comparison of the term deposits in a short letter to your client.

Your comparison letter must include:

• Interest Rates
• Compound frequency
• Fees (if any)
• Risk (if known)
• Value at maturity (assuming the interest rate stays the same)
• Notice period (if known)

Your short letter of comparison must contain a minimum of two hundred words. You are required to use financial services software to help you to research your recommendation to the client. This may include the use of an online term deposit calculators from websites to assist in the comparison. You may also wish to cross check the calculations on suitable software such as a spreadsheet.

Subject: Additional information for term deposit

Thank you for that useful information in relation to term deposits. It has been very useful. I have an additional request for more information. How much interest would I receive if I invested the $1,000,000 over 5 years and I had my interest paid out in monthly instalments for each of the three options?

Thanks for your help.

Joan Jacques

Your task is to upload a draft email in reply to Joan Jacques indicating the total value of interest received over 5 years in relation to the term deposits. Your email may be uploaded to this task in the form of a Word document.