What might be a savings goal for a person who buys a, Finance Basics

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What might be a savings goal for a person who buys a

Question: 1. What might be a savings goal for a person who buys a five-year CD paying 4.67 percent instead of an 18-month savings certificate paying 3.29 percent?

2. What is the annual opportunity cost of a checking account that requires a $300 minimum balance to avoid service charges? Assume an interest rate of 3 percent.

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Finance Basics: What might be a savings goal for a person who buys a

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