Question

juanita is saving up to buy a truck. she wants to put $4000 down and borrow the rest. that down payment will lower the monthly payment so she can easily afford a new truck. she has been saving for 18 months and has half the money. it will take her about the same amount of time to save up the other half. what should she do with the $2000 in the meantime? (1 point) purchase a government bond and postpone the purchase keep it in her checking account with the money she spends regularly change her strategy and borrow all of the money to get the truck sooner invest in a treasury bill so that she can access the money when she needs it

Explanation:

• Government bonds are a relatively safe investment option. Since she will need the money in about 18 months (same time it took to save the first half), a government bond can earn some interest while still being a secure place for her savings.
• Keeping it in a checking account with regular - spending money may lead to accidental spending.
• Borrowing all the money goes against her initial plan of having a down - payment to lower monthly payments.
• Treasury bills are short - term (usually less than a year in the most common cases), and her time - frame is about 18 months.

Answer:

purchase a government bond and postpone the purchase