In this portion of the Signature Assignment, you will include additional information to your draft that will relate your budget to a TED Talk and apply the financial knowledge to solve a problem.
Paragraph 5: Personal Finance Crisis Reflection
Watch Elizabeth White’s TED Talk by clicking the following link. Captioning and transcripts are available at the link.
Write a paragraph summarizing your thoughts about Elizabeth White’s TED Talk.
What are your major takeaways from the video?
Did you find any of her points to be concerning? If so, which ones?
How is this talk relatable to you and your future?
Paragraph 6: Financial Application
Use the periodic payment formula from the Financial Literacy Unit (Chapter 10), and the amount you put aside for savings each month according to your budget, to determine the compound amount in an account that earns 2.5% compounded monthly after 1 year and then after 3 years.
Consider increasing the amount you put aside for savings each month by $100. If you saved $500 originally, now you are saving $600 per month. Now, determine the compound amount in an account that earns 2.5% compounded monthly after 1 year and then after 3 years.
You must thoroughly explain the formula you chose to use, the variables in the formula, and the steps you took to arrive at the answers. Round your answers to the nearest cent.
Paragraphs 7 & 8: Financial Application Reflection and Conclusion
Reflect on your calculations between the original monthly savings and the new amount of savings (increased by $100). How did the compound amounts change after 1 year? How did the compound amounts change after 3 years? What can you conclude from your calculations? Would it be worth to you to reduce some expenses in order to save an additional $100 per month?
Conclude the assignment with a short reflection on the financial literacy assignment and what you have learned from it.
Essay Guidelines
Convert all eight paragraphs, bibliography, and budget worksheet in the appendix to a single pdf file and upload it to Canvas. The final draft should be between five to seven pages long (inclusive of the bibliography and the appendix). Your final draft should meet the following formatting guidelines:
Use Times New Roman, size 12 font with multiple spacings set to 1.25. Use traditional one-inch margins.
Type your full name, class, and section in the header.
Use APA or MLA format to organize your essay and sources.
