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3. Assume you just inherited $25,000 from a deceased relative and you choose to invest it to start saving for the down payment on a home you plan to purchase 10 years from now. You are considering the following choices: Your credit union offers a certificate paying 4.65% compounded annually; a local bank is offering a certificate paying 4.6% compounded quarterly; and a reputable investment firm is offering a certificate paying 4.55% compounded monthly. Ignoring for now taxes and other special considerations, carefully evaluate your opportunities. Choose an investment and defend your choice. (solve each using algebra formulas, then check with spreadsheet function.) Credit Union: Bank: Investment firm: Your Conclusion:

3. Assume you just inherited $25,000 from a deceased relative and you choose to invest it to start saving for the down payment on a home you plan to purchase 10 years from now. You are considering the following choices: Your credit union offers a certificate paying 4.65% compounded annually; a local bank is offering a certificate paying 4.6% compounded quarterly; and a reputable investment firm is offering a certificate paying 4.55% compounded monthly. Ignoring for now taxes and other special considerations, carefully evaluate your opportunities. Choose an investment and defend your choice. (solve each using algebra formulas, then check with spreadsheet function.) Credit Union: Bank: Investment firm: Your Conclusion

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