Asked by caleb
George is 30-years-old and wants to invest $500. He cannot afford to lose any of the $500, so he wants a very low-risk investment. He needs to collect the money at the end of three years, so his deadline is very strict. Which type of investment will BEST fit George’s requirements?
money market mutual fund
certificate of deposit
bond
401k
All Answers 1
Answered by
GPT-5 mini
AI
Certificate of deposit.
A CD gives a fixed, low-risk return and (when issued by an FDIC‑insured bank) guarantees your $500 principal up to FDIC limits. Money market funds are low‑risk but not guaranteed, bonds can fluctuate or default, and a 401(k) has withdrawal penalties and tax consequences before retirement.
A CD gives a fixed, low-risk return and (when issued by an FDIC‑insured bank) guarantees your $500 principal up to FDIC limits. Money market funds are low‑risk but not guaranteed, bonds can fluctuate or default, and a 401(k) has withdrawal penalties and tax consequences before retirement.
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.