Data and Solutions:

80,000 WITH $10,000 A YEAR

3 Year GIC at 4.2% ->

Year 1: 80,000 x 1.042 = 83,360

Year 2: 83,360 x 1.042 = 86,861.12

Year 3: 86,861.12 x 1.042 = 90,509.287

Total: 90,509.287

IF THERE WAS A DOWNTURN IN STOCKS:

10,000/yearly into stocks

*7.5% and -6.9%

Year 1: 0 + 10,000 = 10,000

Year 2: 10,000 x 0.93 = 9,300

Year 3: (9,300 +10,000) x 1.075 = 20,747.5

Total: 20,747.5 + 10,000 = 30,747.5

Total: $121,256.78

IF THERE WAS NO DOWNTURN IN STOCKS

10,000/yearly into stocks

*7.5% and -6.9%

Year 1: 0 + 10,000 = 10,000

Year 2: 10,000 x 1.075 = 10750

Year 3: (10,750 + 10,000) x 1.075 = 22306.25

Total: $22,306.25

Overall Total: $122,815.537

Graphs

Justification

I think that this solution was a pretty good way to approach this project. I don’t like to risk a lot so I put about 60% of my money into the GIC to keep it safe. Then, I put the rest into stocks. Even if the stocks went down a little bit, I would have enough to cover the cost as shown above. This solution could have the potential to earn a lot more money but if the stocks completely crashed, I would only be about $900 short which I could either borrow or take out of any backup savings. I think I would be willing to take that risk. When comparing this solution with the other options my group came up with, I choose one that is perfect for my risk tolerance.

Collaboration and Communication

I think I worked pretty well with my group. I would rate myself a 4 in my collaboration because I participated a lot. I listened to others ideas and I shared my own. I helped calculate our answers and I also helped writing out the answers. I think my partners and I all did a good job working together. In the end, I did not use the ideas we came up with because I felt that the risk was too high for me personally. However, I did put some of my money into stocks just like we had done in our original ideas because I learned that the stocks can earn a lot of money fast.

Core Competency Reflection

I can work with others to achieve a goal.

I worked with my group by trying to help the group have clear communication. I listened to my groups ideas and I added my own ideas to come up with a good solution. We also worked together when we were trying to figure out some problems we were experiencing. One problem was that our ideas kept being $100 too short. After looking at other ideas, we were able to achieve our goal of coming up with a successful solution.

I seek, develop and weigh options as demonstrated by…

While working on this project my group and I came up with multiple ideas. However, none of them worked for me. But, when we came up with these ideas I was able to develop my understanding in this subject. For example, I learned how useful stocks are and so I put a part of my money into stocks which allowed me to get more money overall. So after looking at the results of the options, I weighed my options and choose a safer route.

I consider more than one way to proceed in an investigation.

In this project we were asked to come up with multiple solutions for this project, that way we could find the best one that would work with our own personal risk levels. When we worked together, we tried multiple options that were quite different such as, putting our money into GIC, or all into stocks, etc. While there were a few options I considered, I ended up choosing a fairly safe one that worked for me since I prefer not to take large risks.

When it seems the good ideas just won’t come to me, I …. to help calm myself or create space in my mind to…

Sometimes I find it difficult to come up with ideas. To deal with that, I will sometimes take a step back and try to approach it from a different angle. This is really helpful since I can get too focused on the issue that I can’t see the other sides of it, but when I take a step back I can see all the other ways I can approach it. Another way I try to find new ideas is to ask for someone else’s viewpoint. That is why I appreciated the fact that we got to work together in a group; then we could see everyone’s different viewpoint which is super helpful in projects like these.