POB 4.03

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How are common and preferred stocks similar?

RadioShack offers shares of stock to investors at a consistent rate of 6% without any voting rights. What type of stock is it offering?

How much interest is earned on a balance of $1,000 for a certificate of deposit that is compounded at an 8% interest rate for account maintained for three years?

Ted deposits money in a savings plan regularly. The interest he earns on this plan is indicative of how the money markets are doing. Which savings plan is he using?

How are common and preferred stock different?

Mary needs a savings plan that will allow her to access her money as cash for potential emergency needs. Which type of evaluation factor of saving is she considering?

Sam prefers a savings plan that allows him to earn interest on previously earned interest. Which type interest does he prefer?

Mary prefers a relatively safe investment that will allow her to withdraw money after a few days without losing any of her principal. Which is the BEST investment choice for Mary?