Using your current age(take my current age as 28) or

  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.
     
  2. How much will you have saved by the age of 65?
     

  Calculate again at 6% and 10%.

  1. What would happen if you waited to start another 10 years?
     

    3. After calculating all of these scenarios, what were you most surprised to learn and why?    

B)  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? 

Discussion Instructions:

Discussion posts should be answered with Fundamental Financial merits along with your experiences and opinions.  Please share your experiences and opinions-we will all benefit if you do!  Thank you.    Use www.calculator.net if necessary.  

The primary thread must have a minimum of 200 words. Your Secondary posts must have a minimum of 100 words.

Please put your name into the subject line. 

Provide References.

Please post your initial response on or before Thursday at 23:59 EST. Provide comments on 1 of your classmates’ posts on or before Sunday at 23:59 EST. 

If you have any questions, please review the instructions for the discussion board as outlined in the syllabus.

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