Question: what is one benefit of purchasing saving bonds? a. saving bonds are purchased from the government and guaranteed to increase in value. b. saving bonds are purchased from commercial banks and guaranteed to increase in value. c. saving bonds are short term investments backed by the government to protect from loss. d. saving bonds are long term investments created to first time home buyers obtain a mortgage.

After graduation, you plan to work for dynamo corporation for 12 years and then start your own business. you expect to save and deposit $7,500 a year for the first 6 years (t = 1 through t = 6) and $15,000 annually for the following 6 years (t = 7 through t = 12). the first deposit will be made a year from today. in addition, your grandfather just gave you a $32,500 graduation gift which you will deposit immediately (t = 0). if the account earns 9% compounded annually, how much will you have when you start your business 12 years from now?