Practice #2
Complete each of the items below. When you are done check your
answers with the ones provided in the solution (to view the solution,
click on the [solution to practice]
button at the bottom of this page).
Rates for Interest
Earned
(Adapted from: USA Today, 1/15/98)
|
Type of Investment |
Present |
6 mos. ago |
1 yr. ago |
|
Money Mutual Funds |
5.07% |
5.0% |
4.82% |
|
Bank Money Market |
2.53% |
2.61% |
2.60% |
|
6 month CDs |
4.81% |
4.9% |
4.76% |
|
1 year CDs |
5.09% |
5.2% |
5.04% |
|
5 year CDs |
5.42% |
5.74% |
5.53% |
- One year ago, which type of investment had the highest interest
rate? Which type had the lowest interest rate?
- What type of investment had an interest rate of 5.00%? How
long ago did it have this interest rate?
- Which types of investments have had interest rates drop from
one year ago to the present day?
- Which type of investment would give you the largest return
on your money? Explain your answer.
[solution to practice]