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- Catrina recently graduated from college with a degree in political science. She started a job that pays her $48,000 per year. Her monthly net income is $2,800. She’s moving into her own one-bedroom apartment. She has a car that she makes payments on and she pays for car insurance. She also adopted a cat, so she now has to pay for cat food and vet bills. Catrina has budgeted for the following monthly expenses based on what she expects to spend: Using the information about Catrina's proposed monthly budget above, answer the following questions. Is Catrina budget balanced? If not, what can Catrina do to balance her budget? Is Catrina following the 50, 30 and 20 spending plan in terms of savings? Explain. If Catrina decides to increase savings where would you suggest that she decrease her spending?Charlotte has just finished her MBA and started a career in banking investment, she wanted to have a new car as soon as possible. The price of the car is $ 28,320. She must also have clothes and coats for the job which costs $ 3,248. The salary for his job this year is $ 42,000 and next year it will be increasing to $ 46,000. The cost of living this year is $ 34,000. Charlotte plans to make the difference between income and expenditure for consumption by borrowing. Interest on the loan is 15% per year. Charlotte wants to pay the loan and interest within a year. How much money is left for next year that Charlotte can spend (consume)?Veronica and Jasmine are twin sisters. They recently bought a townhouse together because they knew that they couldn’t afford to buy one on their own. They live in a small community where cost of living is less, but so are incomes. Veronica works as a hair stylist and makes about $800.00 a week and Jasmine is a store manager and brings home just a bit more, $900.00 a week. There mortgage payment is $950.00 a month and utilities, phone, cable and internet cost an addition $600.00. Their grocery bill is approximately $600.00 a month because both girls enjoy entertaining and having friends over. Veronica is paying off her student loan from hair stylist school and that costs an additional $156.00 per month. Their car payments are $800.00 per month and their gas is only $150.00 as everything is located so close together. They are hoping to go to Cuba with some friends for a week in November. The cost of the trip is $685.00 each. November is four months away. Will they be able to save enough…
- Carol moves house in order to reduce commuting time to her workplace. She moves out of her own house, which requires mortgage payments of €900 per month, to move into another house where she must pay rent of €700 per month. Though she must still pay the mortgage on her own house, she is able to lease it to friends for €500 per month. By moving to the new house, she finds it easier to work longer hours and her salary increases by €140 per month while her monthly travel costs decrease by €60. What is Carol’s monthly economic ‘profit’ from moving house? a.€60 b.€80 c.-€20 d.€0 e.€100Farrah and Sam Newton, a dual-income couple in their late 20s, want to replace their 7-year-old car, which has 90,000 miles on itand needs some expensive repairs. After reviewing their budget, the Newtons conclude that they can afford auto payments of notmore than $330 per month and a down payment of $2,400. They enthusiastically decide to visit a local dealer after reading itsnewspaper ad offering a closed-end lease on a new car for a monthly payment of $330. After visiting with the dealer, test-drivingthe car, and discussing the lease terms with the salesperson, they remain excited about leasing the car but decide to wait untilthe following day to finalize the deal. Later that day the Newtons begin to question their approach to the new car acquisitionprocess and decide to carefully reevaluate their decision.1. What are some basic purchasing guidelines that the Newtons should consider when choosing which new car to buy orlease? How can they find the information they need?2. How would…Vera decides to set up a business selling flowers. She gets up early in the morning, visits the market, and then sets up a stall by the side of the road. For the first year, all goes well. She sells all the flowers she is able to buy and she derives some income from the business However, Vera feels that she could sell more flowers if she was able to transport more to the place where she sells them, and she also knows that there are several other roads nearby where she could sell flowers, if she could be in two places at once. She could achieve these two things by buying a van and by employing other people to sell flowers in other locations. Vera needs more money to achieve this expansion of her business. She decides to ask her rich friend Peter to invest in the business. Peter can see the potential of Vera's business and wants to invest, but he doesn't want to be involved in the management of the business. He also does not want to have ultimate liability for the debts…
- Michelle is attending college and has a part-time job. Once she finishes college, Michelle would like to relocate to a metropolitan area. She wants to build her savings so that she will have a "nest egg" to start her off. Michelle works out her budget and decides she can afford to set aside $80 per month for savings. Her bank will pay her 4% per year, compounded monthly, on her savings account. What will be Michelle's balance in five years?Maria will be a college sophomore next year, and she is determined to have her own credit card. She will not be employed during the school year but is convinced that she can pay for credit card expenses based on her summer earnings. Maria's parents have read a number of articles about the problems of credit cards and college students, including examples of students leaving school after a downward spiral of credit cards, overspending, working to pay bills, worrying about bills, working more hours to pay bills, and eventually withdrawing from school. When Maria showed up with a handful of applications including Visa, a Gold MasterCard, Discover, a Visa sponsored by her university, an American Express, a secured MasterCard, and a gas company card her parents were overwhelmed. Maria admitted she didn't want them all. "I'm not stupid," she declared. Since Maria obviously needed to learn about credit cards, her parents agreed to co-sign her application on one condition. She…Maria will be a college sophomore next year, and she is determined to have her own credit card. She will not be employed during the school year but is convinced that she can pay for credit card expenses based on her summer earnings. Maria's parents have read a number of articles about the problems of credit cards and college students, including examples of students leaving school after a downward spiral of credit cards, overspending, working to pay bills, worrying about bills, working more hours to pay bills, and eventually withdrawing from school. When Maria showed up with a handful of applications including Visa, a Gold MasterCard, Discover, a Visa sponsored by her university, an American Express, a secured MasterCard, and a gas company card her parents were overwhelmed. Maria admitted she didn't want them all. "I'm not stupid," she declared. Since Maria obviously needed to learn about credit cards, her parents agreed to co-sign her application on one condition. She…
- Maria will be a college sophomore next year, and she is determined to have her own credit card. She will not be employed during the school year but is convinced that she can pay for credit card expenses based on her summer earnings. Maria's parents have read a number of articles about the problems of credit cards and college students, including examples of students leaving school after a downward spiral of credit cards, overspending, working to pay bills, worrying about bills, working more hours to pay bills, and eventually withdrawing from school. When Maria showed up with a handful of applications including Visa, a Gold MasterCard, Discover, a Visa sponsored by her university, an American Express, a secured MasterCard, and a gas company card her parents were overwhelmed. Maria admitted she didn't want them all. "I'm not stupid," she declared. Since Maria obviously needed to learn about credit cards, her parents agreed to co-sign her application on one condition. She…Kim is trying to decide whether she can afford a loan she needs in order to go to chiropractic school. Right now Kim is living at home and works in a shoe store, earning a gross income of $970 per month. Her employer deducts $221 for taxes from her monthly pay. Kim also pays $98 on several credit card debts each month. The loan she needs for chiropractic school will cost an additional $109 per month. Help Kim make her decision by calculating her debt payments-to-income ratio with and without the college loan. (Remember the 20 percent rule.) (Enter your answers as a percent rounded to 2 decimal places.) Debt Payments-to-Income Ratio Ratio with college loan Ratio without college loanBianca decides to stop going to the coffee shops in the morning and figures she saves about $30 per week by doing so. Instead, she deposits $30 at the end of each week into an account that earns 3.8% interest. How much money will she have saved in this coffee account after 5 years?