Chapter 8, Problem 2CC

Summary Introduction

Case summary:

Mrs. S and Mr. M are going to be married in 3 months. They have been discussing what furniture and other items each of them will bring into the relationship. They also find that some items need to be replaced. Further they are planning to replace Mrs. S’s car as it is old, unreliable and require frequent repairs. They realized that a used car will be a better option for them so that they can reach their goals of owning a condo opening Mrs. S’s pet salon within next 2 years.

Character in this case:

Mrs. S and Mr. M.

Adequate information:

Monthly income is $1,750.

Living expenses are $1,210.

Personal property is of $7,300.

Savings are $5,000.

Student loan is of $4,200.

Credit card debt is of $1,500.

To determine:

Items included in real cost of owning a car.

Introduction:

Real cost includes all the fixed expenses as well as variable expenses incurred by a buyer.