Using the potential return data provided in the previous question, calculate the amount of monthly savings that you will need to invest in order to achieve your financial goal. (If you selected multiple investment categories for your goal, then use an average of the returns as the expected rate of return.)

Financial Goal: My financial goal is to save enough money to comfortably pay rent for a nice apartment in Scranton. Timeframe for Achievement: I plan to achieve this goal within the next 3 years. Estimated Amount of Funds Needed: To estimate the amount of funds needed for this goal, I will consider several factors: Rent Expenses:Research the average cost of renting a nice apartment in Scranton. I found a suitable apartment for $1,400 per month. Living Expenses:Account for other living expenses such as utilities, groceries, transportation, and miscellaneous costs. Emergency Fund: Include an emergency fund to cover unexpected expenses or financial setbacks. Salary from Entry-Level Job: Assume a salary of $60,000 from an entry-level marketing job at a clothing company. For example, Let's say the average monthly rent for a nice apartment in Scranton is $1,400. Over 3 years (36 months), the estimated rent expenses would be $50,400 ($1,400 x 36). Including living expenses and an emergency fund, let's estimate an additional $20,000 for a total of $70,400. Considering the salary of $60,000 per year, over 3 years, the total income would be $180,000. Apartment Listings and Market Research: Utilize online platforms, real estate websites, or local agencies to gather information on current rental prices in Scranton. Budgeting Tools: Use budgeting tools or financial planning apps to estimate monthly living expenses based on the desired lifestyle. Salary Research: Research salary information for entry-level marketing positions in the clothing industry to ensure a realistic income estimate. Emergency Fund Guidelines: Follow general financial advice, which suggests maintaining an emergency fund equivalent to 3 to 6 months' worth of living expenses. Conclusion: To comfortably pay rent for a nice apartment in Scranton over the next 3 years, I estimate needing approximately $70,400. The assumed entry-level marketing job with a $60,000 salary per year provides a solid income foundation. Regularly reassessing and adjusting this estimate based on personal circumstances and market conditions will be crucial for effective financial planning.

Certificate of Deposit (CD): Potential Annual Return: 2% Reasons for Selection: Certificates of Deposit (CDs) are low-risk, fixed-term investments. The 2% potential annual return aligns with your short-term goal. Provides capital preservation with a guaranteed return upon maturity. Suitable for funds earmarked for your goal within a 3-year horizon. Government Bonds: Potential Annual Return: 3% Reasons for Selection: Government bonds are considered low-risk and provide a modest return. The 3% potential annual return is relatively stable and aligns with your short-term goal. Offers better returns compared to a Certificate of Deposit, while maintaining a conservative risk profile. Corporate Bonds:Potential Annual Return: 5% Reasons for Selection: Corporate bonds provide a slightly higher potential return, but with slightly increased risk compared to government bonds. The 5% potential annual return can enhance overall returns without exposing your funds to excessive risk. Suitable for a balanced approach with moderate risk tolerance. Given my goal of saving for a nice apartment within a 3-year timeframe, it's crucial to prioritize capital preservation and minimize exposure to high-risk investments. While options like stocks or real estate could potentially offer higher returns, they also come with higher volatility and are more suitable for longer-term goals. The selected investment categories (Certificate of Deposit, Government Bonds, and Corporate Bonds) provide a balanced approach, offering reasonable returns while mitigating the risk of significant capital loss in the short term. This strategy aligns with my goal of saving for a specific expense within a relatively short timeframe.