what is the most suitable option for norm to invest his $15,000, considering his daughters upcoming college…

what is the most suitable option for norm to invest his $15,000, considering his daughters upcoming college plans and the associated interest rates?\na. a four - year cd paying 4.8% interest, with a substantial penalty for early withdrawal\nb. an online savings account offering 2.3% interest\nc. a money market account paying 3.5% interest, renewable for three - month commitments\nd. a checking account with no monthly fees\nplease select the best answer from the choices provided\na\nb\nc\nd

what is the most suitable option for norm to invest his $15,000, considering his daughters upcoming college plans and the associated interest rates?\na. a four - year cd paying 4.8% interest, with a substantial penalty for early withdrawal\nb. an online savings account offering 2.3% interest\nc. a money market account paying 3.5% interest, renewable for three - month commitments\nd. a checking account with no monthly fees\nplease select the best answer from the choices provided\na\nb\nc\nd

Answer

Brief Explanations:

Norm needs to consider his daughter's college plans, which may require flexibility in accessing funds. A four - year CD has a high interest rate but a substantial early - withdrawal penalty. An online savings account has a low interest rate. A checking account is mainly for day - to - day transactions and has minimal or no interest. A money market account with 3.5% interest and three - month renewal commitments offers a balance between interest and flexibility.

Answer:

C. A money market account paying 3.5% interest, renewable for three - month commitments