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In which situation would a savings account be the best investment to earn interest?

a. saving for retirement in twenty years
b. saving to buy a new car in three years
c. saving to buy a new house in seven years
d. saving in July to buy holiday gifts in a few months

Respuesta :

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A savings account is where you store money in an account until a certain period of time. It is not like a regular checking account, with this it is for either short term or long term savings for something big. We can for sure cross out D. because that makes no since for saving large amounts of money. We can cross B. out cause yes cars get interest, but sometimes it's bad interest. We can cross A out because retirement doesn't bring interest. SO, I think the most logical answer would be C. Buying a house in seven years. It gets good interest rates and if you keep up on payments with everything that you're billed for in a house good credit rates as well.

I hope this is right, and helps! Have a wonderful day.
shristiparmar1221

Savings account is an interest bearing account. Saving for retirement in twenty years will earn maximum interest, as the longer you keep the money in savings account, the higher interest you will earn.

What is a Savings account?

A savings account is an interest bearing account, that pays a modest amount of interest to its customers. Savings account is mainly a good option to store money because of its safety and reliability.

In savings account, the longer you will keep your money, the maximum interest you will earn as it is known for its safety and reliability. Keeping money for 20 years till retirement will make maximum interest.

Therefore, option , A, saving for retirement in twenty years is correct.

Learn more about, Savings account, here,

https://brainly.com/question/1446753

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