Data and Solution

I will allocate my money in the account that gives 4.2% non-redeemable GIC in 3 years
(option B)

In the starting year, I have $80,000

On the first year, I will earn $80,000 × 4.2% = $3,360 for GIC

                           So, in total, I will have $80,000+$3,360 = $83,360

                           +$10,000

On the second year, I will earn $83,360 × 4.2% = $3,501.12 as GIC

                           So, in total, I have $83,360 +$3,501.12= $86,861.12

                           +$10,000 + $10,000

On the third year, I will earn $86,861.12 × 4.2% = $3,648.16704 for GIC

So, in total, I have $86,861.12 +$3,648.16704= $90,509.287

                           +$10,000 + $10,000 + $10,000

Hence, in next 3 years, I will earn $90,509.287+ $30,000 = $120,509.287 in total.

Justification

GIC= guaranteed investment certification

I think the weakness of GIC is that not all investment returns are taxed equally, and unlike capital gains and dividends, interest income earned from GICs is fully taxable in the year received.  GIC is also a low returns. While GICs are safe, the returns are very low compared to other kinds of investments.

However. there are some good aspects, too; fixed term and interest. You will know exactly when your GIC will expire and how much interest you’ll earn at the end of the term.

Collaboration and Contributions

I didn’t work as a group and got a  help from Mr. Ruditsch. It was interesting to know about how GIC actually applies to the account.

Core Competency Reflection

When I need to boost my mood or re-focus, I… usually do other works so that I can do the refreshing. While I did this assignment, I had tried to re-focus on by looking up relevant info. 

My values around new learning inform my decisions about… I gives me another perspective on how I can look something in different views. 

I can ask and respond to questions to be an active, supportive listener. I make sure my group is active in learning and understands the solution.

I reflect on my thinking. I am able to look at my work and see any things I’ve done well in and any things I might have missed. 

I can analyze evidence to make judgements. I look at the evidence provided and create a possible solution. 

I consider more than one way to proceed in an investigation. I can look and process any other possible solutions to the problem. I then can see how it compares with my own solution.