Extended Response Questions
- Most people know that saving for their retirement is important, yet many people choose to save little or nothing when they are young. Using the RACE technique, explain the advantages and disadvantages of starting to save for retirement early?
- Tyris recently received a phone call from the bank telling him he was late making payments on a loan. He does not have a loan with that bank or any bank, as he lives debt-free. What problem does Tyris most likely have? What steps does he need to correct it?. Use RACE
- Sean has $255 in his checking account on Monday and gets paid $1200 for a two-week pay period on Friday. He needs to pay his roommate his portion of the rent of $300 and his Sprint phone bill of $60. Describe when he should write checks and mail these bills. Explain how he can avoid overdrafting his account.
- Susan is trying to decide whether to quit her $20,000 per year job so she can return to college next year as a full time student. If she goes to college next year, her books and supplies will cost $500, tuition will cost $3,000, and her other expenses (transportation, housing, and food) will increase by $2,000. What is Susan's opportunity cost of attending college next year?
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