What is the assumed interest rate for deposits

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Reference no: EM132750595

Question - Mr Harrison is planning to invest his money in 2021. Interest the rate of deposits in 2020 is 4%. The interest rate for deposits in Indonesia this year 2021 you should search based on the information you get (Note: Search on Google and make the data on Google as your back up why you choose interest rate the company).

Deposits are assumed to provide a stable return, regardless of market conditions. Investment in gold will depend heavily on the state of the market. If the market is sluggish, then the return of gold is 4%. If the market is moderate, then the return of investment from gold is about 6% and if the market is strong return from gold is about 15%. The next investment is blue chips stocks. This type of stock fairly stable with a return of 0.5% above gold for a moderate and strong market. For the market returns are 0.5% below the return of gold. The next option is of course stocks with high risk. If the market is strong, then the return of investment is 20%. For the market the moderate return is 2% and if the market weakens the chance of a return is -10%.

Required - What is the assumed interest rate for deposits in 2021. Why are you assuming the number? Attach 2 articles from Google that support your assumptions?

Reference no: EM132750595

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