Finance 210_ Appendix K - Axia College Material Appendix K...

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Axia College Material Appendix K Castillo Lefébrve Case Study Read the case study then complete the table below and answer the questions which follow. Cara Castillo and Van Lefébrve will be married in two months. Cara works full-time as a bank teller making $21,000 per year. After taxes and deductions, Cara’s bi-weekly checks are $605.75. Van works full-time as a plant supervisor for Riordan Manufacturing. Van makes $40,000 per year and his bi-weekly checks are $1,153.85. Together Van and Cara bring home $3,443.16 each month from working. Van and Cara have several monthly payments which they will bring into their marriage. Van has a $50 per month student loan payment over the next five years. Cara has a car loan which costs $210 per month and has 36 months remaining. Van is also paying off Cara’s engagement and wedding rings, for which he agreed to pay $100 per month for the next 48 months. Cara has a credit card which has an outstanding balance of $6,000 at 18% interest, on which she makes minimum monthly payments at a cost of $115 per month. Van and Cara plan to pay for the remaining wedding and honeymoon costs with Van’s credit card which has a $10,000 limit. They believe they will need to place $4,500 on Van’s credit card, which has an 8% interest rate and requires a $50 minimum monthly payment. While planning for their new life together, Van’s truck is wrecked in an accident when he is hit by a drunk driver. Cara and Van work 45 minutes apart and have to be at work at the same time each day. Cara currently lives at home with her parents and Van lives with three other roommates. Before Cara and Van are married they need to find a place to live after their wedding. Cara has never rented or owned an apartment before and has a 640 credit score. Van
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Finance 210_ Appendix K - Axia College Material Appendix K...

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