Data and Solutions
Work calculations:
Option B – Yr3 4.2% non-redeemable GIC
Yr0 – 80,000
Yr1 – 80,000 x 1.042 = 83360
Yr2 – 83360 x 1.042 = 86861.12
Yr3 – 86861.12 x 1.042 = 90,509.287
Total: 90,509.287 + 30,000 = $120,509.29
Grand Total of – $120,509.29,
Justification
The overall option I chose is to go with the 3-year GIC (Guaranteed investment certificate), I would say this matched my risk tolerance, as I rather play safe with my money and not get potential losses, therefore, with GIC, I’m still getting a guaranteed investment offered from the bank. This is to avoid any risks, yet still gain the sufficient investment though the money accumulated over 3 years for the down payment, however leaving you with estimated $509 sum. The only downside of investing in GIC. Is that the account will be locked in until the end of the specific period term depending on what I contracted, which is for an entire 3 years I signed for and won’t be able to get access of the money I deposited, even so compared to other options, like stocks, it is an overall riskier investment and there’s no guarantee of profits during the 3-year term in which you would likely gain more investment or end up losing more as it is basically gamble and unpredictable.
Collaboration and Contributions
1. Working with my group was helpful in terms of through my learning the basic idea of financial and problem solving.
2.I didn’t contribute to my group much, reason for this is due not knowing much knowledge upon the financial topic so I simply observed and took notes of processing the steps and formulas on calculating each following option were given. As well as observing other groups, which contributed to my learning if my own group were facing difficulty solving for certain solutions.
3. I used my own solutions, as I didn’t want to rely on my group’s ideas and simply chose to do it independently.
4. My ability to collaborate with other in my group is between a 1 and 2 on the scale of 4, as I didn’t engage with the others neither assist in the working aspect, however I contributed my part in certain tasks such as defining one of the 3 types of investments (GIC’s, Saving account, and Stocks).
Core Competency Reflection
If there is disagreement within the group, I find it helpful to as group be respect towards each perspective without being too personal about it and just resolve this by which opinions are more rational and beneficial to the goal so everyone can understand till its a agreement.
If I notice a sign that my group needs help and we can get support asking the teacher.
One of the ways I ensure my group is clear on the common purpose is to communicate the objectives so everyone can remain clear and avoid misunderstandings, as well as exchange one another ideas.
