Ariel is saving money to purchase a new computer before she leaves for college in two She wants to open a special account at a depository institution to keep her saved money safe. She has asked you for advice on which type of account would be best for her. What would be the best advice for Ariel

Shop for an account that earns high interest

Explanation:

Ariel should shop for an account that earns the highest interest rates in the market. With an account that earns high interest, Ariel does not need to save the entire amount required to purchase the computer. She will save a big percentage while the interest earned will add to the rest of the amount.

An account that compounds interest would be ideal for her.  Compounding interest means that interest earned in the year is added to the principal amount. The principal amount increases, so does interest in the preceding seasons.

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