Janice Sanders plans on saving $12,000 for 3 years until she returns to college for her master's degree in personal financial planning.She would like to receive a fixed rate of return over that period.Which of the following would you recommend?

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Quizplus · Accepted Answer

Since Janice plans on saving for 3 years, a 3-year certificate of deposit (CD) would be the best option as it will offer a fixed rate of return over that period. Money market deposit accounts typically offer lower interest rates, while 1-year CDs would not provide a fixed rate of return for the full 3-year timeline. Series EE US savings bonds may also offer a fixed rate of return, but their rates are often lower than those of CDs. Therefore, the best choice would be a 3-year certificate of deposit (CD).

Janice Sanders Plans on Saving $12,000 for 3 Years Until