Succeeded Calculations
Goal = 120,000 & above
3 year GIC
80,000 x 1.042 = 83,360
83,360 x 1.042 = 86,861.12
86,861.12 x 1.042 = 90,509.29
1 Year GIC for one year of savings
10,000 x 1.035 = 10350
Adding all 3 years worth of savings together
10,350 + 10,000 + 10,000 = 30,530
30,350 + 90,509.29 =120,859.29
Final Amount
=120,859.29
Failed Calculations ( GIC 3 Year done incorrectly )
80,000 x 1,042 = 83,360
83,360 + 10,000 = 93,360
93,360 x 1.042 = 97,281.12
97,281.12 + 10,000 = 107,281.12
107,281.12 x 1.042 = 111, 786.93
111, 786.93 + 10,000 = 121,286.93
does not work because you can not add 10,000 into a GIC each year if it is a 3 year plan, as it is non renewable.
Another possible Solution
40,000 x 1.075 = 43,000
43,000 + 10,000 = 53,000
53,000 x 1.075 = 56,975
56,975 +10,000 = 66,975
66,975 x 1.075 = 71,998.125
71,998.125 + 10,000 = 81, 998.125
40,000 x 1.035 = 41,200
41,200 + 81,998.125 = 123,198.125
Justification for our solution (Strengths and Weaknesses)
| Strengths | Weaknesses |
| Risk free (Guaranteed payback) | Low risk = low reward (Less money than you can make with ex. Stocks |
| Higher interest rate than a regular savings account | Only 800$ extra |
| Non-redeemable (cannot take money out & cannot add money) |
This solution was one of the best possible for my risk tolerance, as when I took the survey I had a low risk percent. Although it does not have many strengths, it trades this off for a guaranteed chance to make enough money for the house. For many other people they may find confidence to invest into stocks for a high risk, high reward.
Group Reflection (Collaboration questions)
Working with my group was easy, as I already knew one of the members quite well, and I found it easy to connect with and support my other group member. I contributed ideas to the group, how stocks rates averaged, I also would do calculations alongside my group members to speed up the process. My other group members also did the same, supporting and collaborating, sharing ideas. I ended up using the final solution we all came up with, after going through 3 other ideas we settled on a 3 year GIC + a 1 year GIC in savings. I think my ability to collaborate in this project is a 4/4.
Core Competency Reflection
“If there is disagreement within the group, I find it helpful to” try every idea that the group comes up with. Whenever the group would disagree about different interest rates or different solutions I found it very important to listen closely to each idea. Along with trying out every solution or idea.
I can take on roles and responsibilities in a group; I do my share. I do this by helping out in each area I can in the work while also focusing on one thing. For this project I focused on creating calculations along side my group members to brainstorm solutions for each question. Than proceeding to share.
I can form new ideas to create new things. I can also build on the ideas of others. I formed ideas through thinking of new solutions and creative ways to get 15% of 800,000. I also built on others ideas like using a 3 year GIC, than adding on to it by using someone else’s idea but advanced such as putting some savings money into stocks for a year.
I can ask and respond to questions to be an active, supportive listener. I could ask the teacher and helpers questions if I was unsure. I listened to my group members ideas and I listened to the teachers instructions. Through listening I was able to deepen my understanding of this course, that I knew nothing of beforehand.