J is a full time student work part time in a bakery. She just move into her new home and busy setting up her new home and her budget is tight. She wanted to purchase furniture for the home. So, she applied for three credit cards of different stores. She soon received those credit cards and went for shopping and purchases all the stuff that she required. She was happy with the purchase and was thinking that the bill is not going to due for another 45 days and within that time she will have money to pay stores back. Now, she starts receiving bills from store and she doesn’t have enough balance to pay the bill. Even if she pays the minimum bill it will take her around 14 years to pay the bill she doesn’t even think that furniture will last this long and now worried about it. Character in this case : S and two bankers. Adequate information: Checking account: $1,800 Savings account: $7,200 Emergency fund savings account: $2,700 IRA balance: $410 Car: $2,800 Student loan balance: $10,800 Gross monthly salary from the bakery: $2,750 (Net income: $2,175) Rent: $350 Utilities: $70 Food: $125 Gas/maintenance: $130 Credit card payment: $0 Credit card balance: $4,250 (total of three store credit cards) To determine: The way J can use this offer to her advantage and the way in which this offer will become her major disadvantage.

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Answer 1

Question

Chapter 7, Problem 2CC

Summary Introduction

Case summary:

J is a full time student work part time in a bakery. She just move into her new home and busy setting up her new home and her budget is tight. She wanted to purchase furniture for the home. So, she applied for three credit cards of different stores. She soon received those credit cards and went for shopping and purchases all the stuff that she required. She was happy with the purchase and was thinking that the bill is not going to due for another 45 days and within that time she will have money to pay stores back. Now, she starts receiving bills from store and she doesn’t have enough balance to pay the bill. Even if she pays the minimum bill it will take her around 14 years to pay the bill she doesn’t even think that furniture will last this long and now worried about it.

Character in this case: S and two bankers.

Adequate information:
Checking account: $1,800
Savings account: $7,200
Emergency fund savings account: $2,700
IRA balance: $410
Car: $2,800
Student loan balance: $10,800
Gross monthly salary from the bakery: $2,750 (Net income: $2,175)
Rent: $350
Utilities: $70
Food: $125
Gas/maintenance: $130
Credit card payment: $0
Credit card balance: $4,250 (total of three store credit cards)

To determine: The way J can use this offer to her advantage and the way in which this offer will become her major disadvantage.

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Answer 2

Question

Chapter 7, Problem 2CC

Summary Introduction

Case summary:

J is a full time student work part time in a bakery. She just move into her new home and busy setting up her new home and her budget is tight. She wanted to purchase furniture for the home. So, she applied for three credit cards of different stores. She soon received those credit cards and went for shopping and purchases all the stuff that she required. She was happy with the purchase and was thinking that the bill is not going to due for another 45 days and within that time she will have money to pay stores back. Now, she starts receiving bills from store and she doesn’t have enough balance to pay the bill. Even if she pays the minimum bill it will take her around 14 years to pay the bill she doesn’t even think that furniture will last this long and now worried about it.

Character in this case: S and two bankers.

Adequate information:
Checking account: $1,800
Savings account: $7,200
Emergency fund savings account: $2,700
IRA balance: $410
Car: $2,800
Student loan balance: $10,800
Gross monthly salary from the bakery: $2,750 (Net income: $2,175)
Rent: $350
Utilities: $70
Food: $125
Gas/maintenance: $130
Credit card payment: $0
Credit card balance: $4,250 (total of three store credit cards)

To determine: The way J can use this offer to her advantage and the way in which this offer will become her major disadvantage.

Expert Solution & Answer

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Answer 3

Question

Chapter 7, Problem 2CC

Summary Introduction

Case summary:

J is a full time student work part time in a bakery. She just move into her new home and busy setting up her new home and her budget is tight. She wanted to purchase furniture for the home. So, she applied for three credit cards of different stores. She soon received those credit cards and went for shopping and purchases all the stuff that she required. She was happy with the purchase and was thinking that the bill is not going to due for another 45 days and within that time she will have money to pay stores back. Now, she starts receiving bills from store and she doesn’t have enough balance to pay the bill. Even if she pays the minimum bill it will take her around 14 years to pay the bill she doesn’t even think that furniture will last this long and now worried about it.

Character in this case: S and two bankers.

Adequate information:
Checking account: $1,800
Savings account: $7,200
Emergency fund savings account: $2,700
IRA balance: $410
Car: $2,800
Student loan balance: $10,800
Gross monthly salary from the bakery: $2,750 (Net income: $2,175)
Rent: $350
Utilities: $70
Food: $125
Gas/maintenance: $130
Credit card payment: $0
Credit card balance: $4,250 (total of three store credit cards)

To determine: The way J can use this offer to her advantage and the way in which this offer will become her major disadvantage.

Expert Solution & Answer

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Answer 4

Question

Chapter 7, Problem 2CC

Summary Introduction

Case summary:

J is a full time student work part time in a bakery. She just move into her new home and busy setting up her new home and her budget is tight. She wanted to purchase furniture for the home. So, she applied for three credit cards of different stores. She soon received those credit cards and went for shopping and purchases all the stuff that she required. She was happy with the purchase and was thinking that the bill is not going to due for another 45 days and within that time she will have money to pay stores back. Now, she starts receiving bills from store and she doesn’t have enough balance to pay the bill. Even if she pays the minimum bill it will take her around 14 years to pay the bill she doesn’t even think that furniture will last this long and now worried about it.

Character in this case: S and two bankers.

Adequate information:
Checking account: $1,800
Savings account: $7,200
Emergency fund savings account: $2,700
IRA balance: $410
Car: $2,800
Student loan balance: $10,800
Gross monthly salary from the bakery: $2,750 (Net income: $2,175)
Rent: $350
Utilities: $70
Food: $125
Gas/maintenance: $130
Credit card payment: $0
Credit card balance: $4,250 (total of three store credit cards)

To determine: The way J can use this offer to her advantage and the way in which this offer will become her major disadvantage.

Expert Solution & Answer

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Answer 5

Chapter 7, Problem 2CC

Summary Introduction

Case summary:

J is a full time student work part time in a bakery. She just move into her new home and busy setting up her new home and her budget is tight. She wanted to purchase furniture for the home. So, she applied for three credit cards of different stores. She soon received those credit cards and went for shopping and purchases all the stuff that she required. She was happy with the purchase and was thinking that the bill is not going to due for another 45 days and within that time she will have money to pay stores back. Now, she starts receiving bills from store and she doesn’t have enough balance to pay the bill. Even if she pays the minimum bill it will take her around 14 years to pay the bill she doesn’t even think that furniture will last this long and now worried about it.

Character in this case: S and two bankers.

Adequate information:
Checking account: $1,800
Savings account: $7,200
Emergency fund savings account: $2,700
IRA balance: $410
Car: $2,800
Student loan balance: $10,800
Gross monthly salary from the bakery: $2,750 (Net income: $2,175)
Rent: $350
Utilities: $70
Food: $125
Gas/maintenance: $130
Credit card payment: $0
Credit card balance: $4,250 (total of three store credit cards)

To determine: The way J can use this offer to her advantage and the way in which this offer will become her major disadvantage.

Answer 6

Chapter 7, Problem 2CC

Summary Introduction

Case summary:

J is a full time student work part time in a bakery. She just move into her new home and busy setting up her new home and her budget is tight. She wanted to purchase furniture for the home. So, she applied for three credit cards of different stores. She soon received those credit cards and went for shopping and purchases all the stuff that she required. She was happy with the purchase and was thinking that the bill is not going to due for another 45 days and within that time she will have money to pay stores back. Now, she starts receiving bills from store and she doesn’t have enough balance to pay the bill. Even if she pays the minimum bill it will take her around 14 years to pay the bill she doesn’t even think that furniture will last this long and now worried about it.

Character in this case: S and two bankers.

Adequate information:
Checking account: $1,800
Savings account: $7,200
Emergency fund savings account: $2,700
IRA balance: $410
Car: $2,800
Student loan balance: $10,800
Gross monthly salary from the bakery: $2,750 (Net income: $2,175)
Rent: $350
Utilities: $70
Food: $125
Gas/maintenance: $130
Credit card payment: $0
Credit card balance: $4,250 (total of three store credit cards)

To determine: The way J can use this offer to her advantage and the way in which this offer will become her major disadvantage.

Answer 7

Chapter 7, Problem 2CC

Summary Introduction

Case summary:

J is a full time student work part time in a bakery. She just move into her new home and busy setting up her new home and her budget is tight. She wanted to purchase furniture for the home. So, she applied for three credit cards of different stores. She soon received those credit cards and went for shopping and purchases all the stuff that she required. She was happy with the purchase and was thinking that the bill is not going to due for another 45 days and within that time she will have money to pay stores back. Now, she starts receiving bills from store and she doesn’t have enough balance to pay the bill. Even if she pays the minimum bill it will take her around 14 years to pay the bill she doesn’t even think that furniture will last this long and now worried about it.

Character in this case: S and two bankers.

Adequate information:
Checking account: $1,800
Savings account: $7,200
Emergency fund savings account: $2,700
IRA balance: $410
Car: $2,800
Student loan balance: $10,800
Gross monthly salary from the bakery: $2,750 (Net income: $2,175)
Rent: $350
Utilities: $70
Food: $125
Gas/maintenance: $130
Credit card payment: $0
Credit card balance: $4,250 (total of three store credit cards)

To determine: The way J can use this offer to her advantage and the way in which this offer will become her major disadvantage.

Answer 8

Expert Solution & Answer

Answer 9

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Answer 10

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Answer 11

Ch. 7 - Prob. 7.1PQ1 Ch. 7 - Prob. 7.1PQ2 Ch. 7 - Prob. 7.2PQ1 Ch. 7 - Prob. 7.2PQ2 Ch. 7 - 3. Distinguish among the adjusted balance,...Ch. 7 - Prob. 7.2PQ4 Ch. 7 - Prob. 7.3PQ1 Ch. 7 - Prob. 7.3PQ2 Ch. 7 - Prob. 7.3PQ3 Ch. 7 - Prob. 7.4PQ1

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