Consider each of the following case studies. For each scenario, create a monthly budget. You will...

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Finance

Consider each of the following case studies. For each scenario,create a monthly budget. You will have to make reasonableassumptions for many expenses based on personal experience andinternet research. Where required, include a description of anyassumptions made.
Case Study 1
Part 1
Kevin has recently graduated from a college program in ComputerEngineering Technology and has accepted a job with a computernetworking company in Kitchener, Ontario. His monthly salary afterdeductions is $2235. Kevin rents a one-bedroom apartment in town.His monthly rent is $950 plus electricity, phone, internet, andcable. Kevin owns an older car which seems to need many repairslately. Kevin is also a big movie fan. Between going to the moviesand buying DVD’s, Kevin estimates that he spends $60 per week.
Part 2
Kevin borrows $12 000 to buy a new car. His car loan chargesinterest of 6.9% /a, compounded monthly. The loan is amortized over3 years. Use the TVM Solver to determine his monthly payments.Create a revised budget to reflect this expense. You will likelyneed to reduce some of Kevin’s expenses so that he can afford hiscar payments.

Answer & Explanation Solved by verified expert

4.4 Ratings (750 Votes)

Part 1As per internet dataAverage food expense is 550 and average electricityphonecableexpense is 150Average Car maintenance is 50 per month So below is themonthly budget for See Answer

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Consider each of the following case studies. For each scenario,create a monthly budget. You will have to make reasonableassumptions for many expenses based on personal experience andinternet research. Where required, include a description of anyassumptions made.Case Study 1Part 1Kevin has recently graduated from a college program in ComputerEngineering Technology and has accepted a job with a computernetworking company in Kitchener, Ontario. His monthly salary afterdeductions is $2235. Kevin rents a one-bedroom apartment in town.His monthly rent is $950 plus electricity, phone, internet, andcable. Kevin owns an older car which seems to need many repairslately. Kevin is also a big movie fan. Between going to the moviesand buying DVD’s, Kevin estimates that he spends $60 per week.Part 2Kevin borrows $12 000 to buy a new car. His car loan chargesinterest of 6.9% /a, compounded monthly. The loan is amortized over3 years. Use the TVM Solver to determine his monthly payments.Create a revised budget to reflect this expense. You will likelyneed to reduce some of Kevin’s expenses so that he can afford hiscar payments.