Question

#1). Yasmine plans to attend a four-year public university. She expects she will need to contribute $9,000 annually to her education. Which savings plan will help Yasmine save enough money to pay for one year of school, regardless of whether or not interest is earned on her savings?

A). $600 per month for 1 year
B). $350 per month for 2 years
C). $225 per month for 3 years
D). $200 per month for 4 years



#2).What are possible advantages and disadvantages of using automatic withdrawal to pay bills? Check all that apply.

A). not having to keep track of the balance in a checking account
B). avoiding late payment fees
C). having to share your account information
D). not having to find a stamp and a mailbox
E). not knowing when the payment will be taken out of your account
F). possible overdraft fees if there is not enough money in the account to cover the payment amount
G). having to pay a fee fo

Answer 1

The answer to #1 is D.

The answers to #2 is B,C,D,F.. I'm not sure what the remainder of G says..

Answer 2

Part 1 - option D is the answer.

Part 1:

Yasmine needs to contribute $9,000 annually to her education.

So, the best plan will be as follows:

A. $600 per month for 1 year, amount becomes
`600*12*1=7200`

B. $350 per month for 2 years, amount becomes
`350*12*2=8400`

C. $225 per month for 3 years, amount becomes
`225*12*3=8100`

D. $200 per month for 4 years, amount becomes
`200*12*4=9600`

We can see that plan D will save her required amount. Hence, option D is the correct answer.

Part 2:

Automatic withdrawal is the function given to account holders of any bank, where they can choose a particular date to auto debit their bill amounts.

Advantages are :

B). avoiding late payment fees

D). not having to find a stamp and a mailbox

Disadvantages are :

A). not having to keep track of the balance in a checking account(you surely have to check your bank positions timely )

C). having to share your account information

F). possible overdraft fees if there is not enough money in the account to cover the payment amount.