Case+Study+1+and+2-Lecture+1 (1)

Case+Study+1+and+2-Lecture+1 (1) - $300/month, with 10 more...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Case Study #1 Kelly is a full-time junior in college. She lives on campus with a meal plan. She has a part-time job that pays $250 bi-weekly. She has a savings account with a balance of $500 that bears 1% interest and a checking account (no interest) with a balance of $150. Her expenses include a monthly cell phone bill of $75, and she pays the minimum monthly payment of $50 on her credit card. Kelly has a credit card balance of $1,000 at the interest rate of 22%. Every paycheck Kelly spends $150 on shopping and entertainment. What financial advance would you give Kelly to help her create better spending habits? In what ways can she manage her money better?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Case Study #2 Robin is a recent college graduate. He has a job that pays $1,500 bi-weekly (after taxes). His monthly expenses include a monthly car payment of
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: $300/month, with 10 more monthly payments to make until it is paid off. Robin, also, has rent of $500/month (shared with a roommate) and allocates $250 bi-weekly towards gas, food, and miscellaneous expenses. Robin has two credit cards with a $1,500 balance on one at an 18% interest rate and owes $2,300 on the other at a 20% rate. He has a savings account balance of $1,600 that yields a 2% interest rate. He has a checking account (no interest) with a balance of $320. Robin wants to purchase his first condo ($88,000) with a monthly mortgage of $950 (8% interest rate and includes taxes) with 3% down. What financial advance would you give Robin to help save money to purchase the condo? In what ways, if any, can Robin manage his money better?...
View Full Document

Page1 / 2

Case+Study+1+and+2-Lecture+1 (1) - $300/month, with 10 more...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online