Data and solutions

Part 1

I chose to invest my money in GIC’s. the reason why is because GIC’s are guaranteed and I cannot lose my capital. I originally thought doing stocks would be better. For stocks I used 7.48% rate for the first two years and for the third year I used (-18.60%) because that is how much S&P index is down this year. that amounted to only $102,112.75.

Part 2 (Calculations and Graph)

Stock return average over 5 years 7.49%

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S&P return for 2022 -18.60%

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GIC example $80K in 3yr GIC plus $10K

Year	Start Value	Growth	Percentage	Additional Savings	Total at Year End
1	80000	3,360.00	4.20%		83,360.00
2	83360	3501.12	4.20%		86,861.00
3	86861	3648.18	4.20%		90,509.18

$10K placed in 1 year GIC

1	10000	350	3.50%		10,350.00
2	10350	362.25	3.50%	10000	20712.25
3	20712.25	725.1	3.50%	10000	31,437.35

Total Savings at Year 3 ~ $121,946.53

(Excel)

Part 3

when I first started I thought stocks would be better, but if I have one bad year I might lose a lot of money. That is why for the down payment I will have a better chance with a guaranteed investment with a GIC.

Core competency reflection

I found working with my group went pretty good for most of it. Some parts we did get stuck on but I think we were able to persevere through it.
I Tried my best to get a full understanding of what we were doing and talk to my group. My peers helped me on parts where I got stuck like calculating a GIC and all that stuff
I started by using the graph created with my group. However, I realized that stock rate of return was not exactly correct so I had to recalculate everything over.
my skill to work with other is probably around a 3.5/4 , as I’m very comfortable talking with everyone and I try my best to input.