Discussion Post
1) Using your current age(take my current age as 28) or closest 5-year increment (25, 30, 35, etc), you now decide to begin putting money aside for retirement. You plan to save $______(pick a reasonable amount, under $10,000) at the end of each year (so the first deposit will be a year from now) until the age of 65. Suppose you will earn 8% per year on your retirement savings.
• How much will you have saved by the age of 65?
• Calculate again at 6% and 10%.
• What would happen if you waited to start another 10 years?
• After calculating all of these scenarios, what were you most surprised to learn and why?
2) Honda Motor Company is considering offering a $2,000 rebate on its minivan, lowering the vehicle's price from $30,000 to $28,000. The marketing group estimates that this rebate will increase sales over the next year from 40,000 to 55,000 vehicles. Suppose Honda's profit margin with the rebate is $6,000 per vehicle. If the change in sales is the only consequence of this decision, what are the costs and benefits? Is this a good idea?
• What factors could make this a great success?
• What factors could make this a big mistake?
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.