Problem 1 It is your birthday today. Your grandparents surprise you with the following announcement They have no gift for you today, but will give you a check for $500 on your next birthday. They will also give you checks for $550 and $650 on the two following birthdays. What is the total value today of your grandparent's checks? Problem 2 Emma will retire 4 years from now. Her financial advisor advises her to take advantage of tax free catch-up contributions to her retirement account. She can make a maximum catch-up contribution of $6,000 this year. The maximum catch-up amounts will increase by $1,000 each year. If Emma contributes the maximum allowed each year, how much additional funds will she have accumulated in her retirement nest egg when she retires? Now that you have learned Time Value of Money, why don't we try a "different" kind of assignment that requires you to write about how you will solve the following two problems. This is primarily a writing assignment. I want you to explain "how" the problems posed to you must be solved, and "why" what you are proposing is the way to go about solving each problem. The "how" for each problem is worth 2 points each, and the "why" 2 points each, for a total of 8 points. Problem 1 It is your birthday today. Your grandparents surprise you with the following announcement They have no gift for you today, but will give you a check for $500 on your next birthday. They will also give you checks for $550 and $650 on the two following birthdays. What is the total value today of your grandparent's checks? Problem 1 It is your birthday today. Your grandparents surprise you with the following announcement They have no gift for you today, but will give you a check for $500 on your next birthday. They will also give you checks for $550 and $650 on the two following birthdays. What is the total value today of your grandparent's checks? Problem 2 Emma will retire 4 years from now. Her financial advisor advises her to take advantage of tax free catch-up contributions to her retirement account. She can make a maximum catch-up contribution of $6,000 this year. The maximum catch-up amounts will increase by $1,000 each year. If Emma contributes the maximum allowed each year, how much additional funds will she have accumulated in her retirement nest egg when she retires? Now that you have learned Time Value of Money, why don't we try a "different" kind of assignment that requires you to write about how you will solve the following two problems. This is primarily a writing assignment. I want you to explain "how" the problems posed to you must be solved, and "why" what you are proposing is the way to go about solving each problem. The "how" for each problem is worth 2 points each, and the "why" 2 points each, for a total of 8 points. Problem 1 It is your birthday today. Your grandparents surprise you with the following announcement They have no gift for you today, but will give you a check for $500 on your next birthday. They will also give you checks for $550 and $650 on the two following birthdays. What is the total value today of your grandparent's checks
