Data and Solutions

3 Year GIC + Stock Market

3 Year GIC

Year 1 – 40,000 x 1.042 = 41,680

Year 2 – 41,680 x 1.042 = 43,430.56

Year 3 – 43,430.56 x 1.042 = 45,254.64

Stock Market

Year 1 – 40,000 x 1.075 = 43,000

Year 2 – (43,000 + 10,000) x 1.075 = 56,975

Year 3 – (56,975 + 10,000) x 1.075 = 71,998.13 + 10,000 = 81,998.13

Total = 45,254.64 + 81,998.13 = 127,252.77

OR

Stock Market

Year 3 – (56,975 + 10,000) x 0.913 = 61,148.18 + 10,000 = 71,148.18

Total = 45,254.64 + 71,148.18 = 116,402.82

If the stock market had three good years. This solution will produce more than enough money for the down payment. However if it goes bad even once the money will end up at least 4,000 short. My risk tolerance is mostly medium so this might not actually be the best option for me but I think that the amount missing isn’t very differential so I’d risk it. There might be better options but this one works because there’s a buffer if all goes well and it isn’t a disaster if it doesn’t.

The group work was fine. I believe it went well and my contributions to the group were a few different plan options and writing everything down. The rest of the group also contributed other options and did most of the math for me. We ended up going with the original idea our group had and didn’t do the math for any of the other ones. I would say our group work was a 3.

Core Competency Reflection

I can work with others to achieve a goal.

Our group work went smoothly. There was no discord between the members. All of us contributed, there was no one person doing all the work. As such no one was left out either.

I can take on roles and responsibilities in a group; I can do my share.

I contributed to our group work. I was a part of the discussion happening among my teammates. This is actually somewhat rare, I don’t like talking to people.

I can reflect on my thinking.

I recognize what was probably going through my head at the time. However right now I’m also aware that this solution is not the best, both in general terms and in the terms of my own risk tolerance. Finding a way to ensure the correct amount of money was there no matter what would have been best for me.

I can show a sense of accomplishment and joy. I take pride in my work and myself.

May not entirely be relevant, but I am proud of myself for finally getting this project done. I’m proud I’ve managed to get it complete and no longer have to worry about it anymore. Even if it was very, very late.