1: Solution
The way I am choosing to earn enough money to put the $120, 000 down payment is by investing in stocks for the first two years, because if the stock goes down in either of these two years, I lose significantly less than in the third year. In the third year I will put all my money into a 3.5% one-year GIC, because this is guaranteed to get the amount of money I will need.
This way to me seems much less risky than putting all three years with stocks.
Year 1
$80,000 x 1.07486 = $85,988.8
+10k = $95, 988.8 Year 2
$95,988.8 x 1.07486 = $103,174.52
+10k = $113,174.52 Year 3
$113,174.52 x 1.035 =$117,135.63
+10k = $127, 135.63
2: Visual Representation – I used Excel to make this graph
3: Justifications
The reason I choses this solution is because as I said earlier, the risk of a bad year of stocks is much less damaging in the first two years then the last, and I end up with an extra $7k.
The advantages of this way are :
- Lower risk of huge loss
- Extra $7k at the end of year 3
The disadvantages are:
- First two years are susceptible to losses
- If either of the first two years have a loss, it will take more then 3 years to make the money
- If the first 2 years do go well for stocks, it might have been smarter to invest in stocks because of the extra ~$4k.
4: Collaboration and Contributions
a) I really liked working with my group. I think we work well together, but I think I didn’t give them enough chances to do the work, and just did most of it myself, which is a mistake, because if one person does too much of the assignment, the others could lose interest very quickly.
b) I contributed to my group by taking charge and doing a lot of the equations. My group mates didn’t do to much, but they corrected my mistakes when I made them.
c) No I didn’t because the solution we did was too risky for me to do IRL, and I know I wouldn’t want to do it if I was actually trying to buy a house.
d) I would rather it a ¾ because though I did help, I feel like a didn’t leave room for my team to do much
5: Core Competency
- One of the ways I ensure my group is clear on the common purpose is to…
Explain what we need to do after reading the instructions, then asking for assistance from an authority if I need to ask a question. This way if my group doesn’t know something, I can get help from someone who they will believe and trust with giving us the information.
- If there is disagreement within the group, I find it helpful to…
If I am the one disagreeing, I try to put myself into the other persons shoes to see their perspective. If I am not, I will try to mediate the disagreement and prevent it from turning into a problem.
- When I am sad, angry or frustrated, doing…
Taking a break from what I am doing, removing myself from the situation, and try to refocus and remember that none of what I do right now really matters, because all it will amass to is a letter on a piece of paper helps me be more productive or calm.
- Although I am challenged by my hearing loss I can get through these challenges by tapping in to…
My people skills, so that if I miss something, I can ask for an explanation from either my peers or teacher(s). I can also turn my hearing aids up or down depending on the situation at hand to hopefully hear better.