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Tim has a checking account with $1,200 remaining after paying bills after several months. He wants to earn interest on
this money rather than keep extra money he does not need for monthly bills in his checking account. Over the next
year, he thinks he might need to withdraw $100 one or two times. His bank requires $250 to open a regular savings
account, $500 for a one-year CD, $750 for a two-year CD, and $1,000 to open a money market account. Decide which
choice would be the best for his situation

Sagot :

abiolataiwo2015

Assuming  He wants to earn interest on this money rather than keep extra money he does not need. The choice that would be the best for his situation is  $250 to open a regular savings.

What is regular savings account?

A regular savings account is a saving acount that enables you to save and earn interest based on the amount saved because it is an interest bearing account.

Although this account gives you interest but the interest rate is low. Since Tim has $1200 in his checking account  assuming he withdraw $100 twices, Tim will have $1,000 ($1,200-$200).

Now if he open a regular saving with $250 he will have $750 left ($1,000-$250) with which he can earn interest with.

Inconclusion the choice that would be the best for his situation is  $250 to open a regular savings.

Learn more about regular account here:https://brainly.com/question/25787382

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