Interest in Investing
Whats My Interest?
Investment Challenge
1. John receives $1,000 as a graduation gift from his grandparents. Rather than spend it, he decides to invest it in a
two-year bond that earns 3% simple interest. John doesn’t need access to the money right away because he wants to
save it for when he’s ready to buy a home in about 10 years. Is the bond a wise investment for John? Why or why not?
What other investment options does John have?
-I believe that this is a good idea but he could also do Mutual funds so he could save up more.
2. If you had the choice between investing $1,000 in a mutual fund that earns 7.5% compound interest or a bond that
earns simple interest at 7.5%, which would you prefer and why?
- I would chose mutual fund because it will get you more money in the long run
1. John receives $1,000 as a graduation gift from his grandparents. Rather than spend it, he decides to invest it in a
two-year bond that earns 3% simple interest. John doesn’t need access to the money right away because he wants to
save it for when he’s ready to buy a home in about 10 years. Is the bond a wise investment for John? Why or why not?
What other investment options does John have?
-I believe that this is a good idea but he could also do Mutual funds so he could save up more.
2. If you had the choice between investing $1,000 in a mutual fund that earns 7.5% compound interest or a bond that
earns simple interest at 7.5%, which would you prefer and why?
- I would chose mutual fund because it will get you more money in the long run