# unit 7.5

For the Unit 7 Discussion Board, you will complete a reflective essay that addresses one of the following scenarios.

• Paying the minimum payment on a credit card versus paying extra to get the credit card paid off early.
• Investing a smaller amount beginning early in life versus investing more each month beginning later in life.

Read this resource from the KU Writing Center on how to write a reflective essay.https://kucampus.kaplan.edu/MyStudies/AcademicSupportCenter/WritingCenter/WritingReferenceLibrary/WritingTypesAndTools/WritingAReflectiveEssay.aspx

As a basis for your essay, make at least one calculation that illustrates the scenario that you choose.  If you choose, you can make more than one calculation.

In your reflective essay, you will address various questions/issues, so begin by choosing one of the scenarios and reading through list of questions and taking notes on what you come up with.

• Paying the minimum payment on a credit card versus paying extra to get the credit card paid off early.
• Choose a credit card balance between \$5,000 and \$15,000 to do your calculations using an 18% APR.
• Use the Credit Card Repayment Calculator at http://www.federalreserve.gov/creditcardcalculator/ to perform the following calculations.
• Calculate how long it would take to pay off the credit card balance paying only the minimum payment.
• Choose an amount of time between two and 10 years, and calculate the monthly payment required to pay off the credit card balance in that amount of time.
• Choose any amount over the minimum monthly payment, and determine how long it would take to pay off the credit balance.
• Do you think credit cards are a wise way to pay for things?
• Do you think credit cards are necessary?
• What would keep you from paying extra on the credit card?
• What would it mean to you to be able to pay the credit card off early?
• What would you be willing to give up or do to do be able to pay extra on the credit?
• Investing a smaller amount beginning early in life versus investing more each month beginning later in life.
• Use the Growth Calculator to make the following calculations.
• http://www.investor.gov/tools/calculators/compound-interest-calculator Set your current principal at \$0 as if you are starting a new account and choose an amount between \$100 and \$500 to use as the monthly addition.   Choose a number of years between 20 and 30 for your investment account to grow.Choose an interest rate between 3.00% and 10.00%.Set compound interest to 12 times per year.What is the future value of your account?
• Keeping all other factors the same, change the number of years to between 5 and 15 for your investment to grow.   What is the future value of your account?
• What would you have to give up to be able to start saving early in life?
• What would you have to give up to be able to start saving later in life?
• What would it mean to you to have extra money each month available to you when you retire?
• What would it mean to you to feel secure about the amount of money you have saves for your retirement?

Now that you have thought through these questions and taken notes, it’s time for you to draft your reflective essay.  Every piece of writing should have an introduction, body, and conclusion.  A good way to plan this particular reflective essay is to write an introduction to the essay.  Next, write at least three body paragraphs.

If you use outside sources for this essay, they need to be cited in proper APA format.  You can find numerous APA resources in the KU Writing Center Writing Reference Library on the Research, Citation, and Plagiarism page. https://kucampus.kaplan.edu/MyStudies/AcademicSupportCenter/WritingCenter/WritingReferenceLibrary/ResearchCitationAndPlagiarism/Index.aspx

Your essay should include a highly developed purpose and viewpoint; it should also be written in Standard American English and demonstrate exceptional content, organization, style, and grammar and mechanics.  There should be no evidence of plagiarism.  If you are unsure what constitutes plagiarism, please review the KU plagiarism policy.https://kucampus.kaplan.edu/MyStudies/AcademicSupportCenter/WritingCenter/WritingReferenceLibrary/ResearchCitationAndPlagiarism/KaplanUniversitysPlagiarismPolicy.aspx