Question

As an eighth grader, Marliss wins an art competition, and her prize is one thousand dollars. She wants to invest the money for her college fund. Which of these would be a good option?

A savings bond

An IRA

Futures

Stocks

Answer 1

I think A. Savings bonds hbu @whpalmer4

Answer 2

yep

Answer 3

you think its A too @Mertsj

Answer 4

She's got about 5 years before she'll conceivably be using the money. An IRA is no good for this application, as she'll have to pay an early withdrawal penalty. She probably doesn't know anything about futures investments, or have the necessary capital to open an account. A savings bond of the right duration will be safe, but provide almost no appreciation relative to inflation. Stocks are really her only reasonable approach here if she wants to have more than $1000 in current purchasing power 5 years down the road.

Answer 5

Could I ask you what you think "yep" means?

Answer 6

what is your reason behind the answer @Mertsj , @whpalmer4 thinks otherwise..

Answer 7

An IRA is for retirement. Futures are too risky and an 8th grader is too young to have a futures account of a stock account so the savings bond is the only sensible option presented for an 8th grader.

Answer 8

There is no reasonable expectation that there is going to be significant increase in $1000 in 4 years. The object is preservation of capital

Answer 9

You still didn't tell me what you think "yep" means

Answer 10

lol yep is really plain ... so it can be a lot of things but i get you..
also in the internet it says that Bonds are attractive investments to people within five years of retirement, who wish to preserve their capital, and who need income.

Answer 11

what was the final answer to this question?