Question

Peggy needs to pay car insurance 2 times every year. She has divided the payment by 6 and saves that amount each month. Which account below is the best account in which to save this money? a. 401-K retirement fund with matching deposits from Peggy’s employer. b. A checking account, or a savings account for other expenses (predictable), and emergencies. c. A savings account for college tuition. d. Coin jar.

Answer 1

I would say the answer is B. To me it just makes more sense. I'm sorry if I'm wrong.

Answer 2

b. A checking account, or a savings account for other expenses (predictable), and emergencies.

Explanation:

Peggy needs to pay car insurance 2 times every year.

She has divided the payment by 6 and saves that amount each month.

So, the best account in which she can save this money is - A checking account, or a savings account.

Other options are irrelevant as a 401-K retirement fund is some other type of account. It is not used for daily or monthly expenses.

Options C and D are also not correct.