(Related to Chapter Introduction: Payday Loans on page 127) The introduction to this chapter examined payday loans. Recently, Congress passed legislation limiting the interest rate charged to active military to 36 percent. Go to the Predatory Lending Association website at www.predatorylendingassociation.com and find the military base closest to you and identify the payday lenders that surround that base. Also, identify any payday lenders near you.
(Related to The Business of Life: Saving for Retirement on page 170) (Future value of an ordinary annuity) You are graduating from college at the end of this semester and after reading the The Business of Lifebox in this chapter, you have decided to invest $5,000 at the end of each year into a Roth IRA for the next 45 years. If you earn 8 percent compounded annually on your investment, how much will you have when you retire in 45 years? How much will you have if you wait 10 years before beginning to save and only make 35 payments into your retirement account?
Watch the “Cash is King” video.
Answer the following questions by clicking Reply:
- What was the most relevant part of this video?
- How can you use this information in your career?
- Were there any parts you found difficult to understand?