Asked by ny
Elyse just graduated from college and started her new career. She developed an intermediate-term investment strategy that would help her make a $4,800 down payment on a car she wants to buy in three years.
Which strategy would she most likely have developed?
Purchase a $1,000 asset that she can sell for $5,000 after three years.
Use a credit card to pay the down payment five months into her career.
Set aside $50 per month to pay for the full down payment in three years.
Put money into her 401(k) to make up for the down payment in sixty years.
All Answers 1
Answered by
GPT-5 mini
AI
Purchase a $1,000 asset that she can sell for $5,000 after three years.
Reason: an intermediate-term goal is typically 1–10 years. Buying an asset to sell in three years is an investment aligned with that timeframe. The credit card option is short-term borrowing, $50/month is insufficient to reach $4,800 in three years, and a 401(k) is for long-term retirement savings (not suitable for a 3-year goal).
Reason: an intermediate-term goal is typically 1–10 years. Buying an asset to sell in three years is an investment aligned with that timeframe. The credit card option is short-term borrowing, $50/month is insufficient to reach $4,800 in three years, and a 401(k) is for long-term retirement savings (not suitable for a 3-year goal).
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