# I need help with my personal finance homework but its due by tomorrow morning so I would need it done…

I need help with my personal finance homework but its due by tomorrow morning so I would need it done by tonight because it is due tomorrow morning.

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 Name: Date: 3 Chapter 8 Building Your Own Financial Plan Goals 1. Establish a credit limit that will enable you to pay credit card balances in full each month. 2. Select credit cards that will provide the most favorable terms at the lowest cost. Analysis 1. Referring to your personal cash flow statement, determine how much excess cash inflows you have each month. Based on this amount, set a self-imposed credit limit each month so that you can pay off your balance in full. If you have existing credit card debt, use the template below to determine how many months it will take you to pay off your balance at three different monthly payment amounts. (The Excel template will perform the calculations for you.) Revise your cash flow statement based on your decisions. Alternative 1 Alternative 2 Alternative 3 Credit Card Debt Monthly Payment Interest Rate per Year Months to Pay off Debt 0 2. Use the following template to select a credit card with favorable terms. Rate the cards from “ 5 Bank Credit Card Scorecard CREDIT CARD ISSUER QUESTION 4 1. Annual fee 2. Interest rate on purchases 3. Interest rate on cash advances 4. Transaction fee for cash advances 5. Insurance on purchases 6. Credit earned toward purchases at selected businesses 7. Frequent flyer miles 8. Free delivery on mail order purchases 9. Phone card capability 10. Credit limit available TOTAL Decisions 1. What is your self-imposed credit limit each month for future credit card purchases? How much of your cash inflows do you need to allot each month to paying off any existing credit card debt? 2. What credit cards offer the most favorable terms for your needs?

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(Complete sentences and grammar)

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Cash Inflows

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 Name: Date: 3/12/13 Gary Grandview—A Continuing Case – Part 3 Personal Financing a. Read Gary Grandview Part 3. Analyze the changing facts provided in Parts 1-3. Continue to assume the role of Gary’s advisor and provide your answers in a business style ton e. b. Please make sure that WRAP TEXT and MERGE and CENTER are ON. (*Excel Toolbar, Home Tab, Alignment section) c. Ensure your answers can be seen in the yellow highlighted text box. Need more space? Increase height of the text box. a) b) d. Ensure printed copies are readable. Print in Portrait. Save and upload the document in the In Box. Print a copy for class. Case Questions Value of Points Possible Lost Update Gary’s Personal Cash Flow statement that you developed in Part 1. Gary’s Personal Cash In-Flow Disposable Income ( After Taxes) \$3,69 4 Total Gary’s Personal Cash Out-flow (Expenses) Rent Renters Insurance Utilities (gas and electri c) TV, Internet, House Phone Cell Phone Food ( consumed at Home) Clothes Car expenses (gas/maint.) Vehicle Payment Vehicle Insurance Payment Entertainment (Socializing) Camping College loan payment Credit Card Payment Total Cash Outflows Net Cash Flows Considering Gary’s decision to purchase rather than continuing to rent, should he purchase the condo or the ranch? Use popular internet web site to make your determination. Site the website utilized. Use the internet (site source) to determine if Gary can afford to: Purchase the new SUV. Lease the SUV. Purchase both the SUV and the home. d) Lease the SUV and purchase the home. 3) What are at least two advantages and two disadvantages of Gary’s deciding to lease rather than purchase the car? Advantages Disadvantages Based on the information you provided, Gary decides not to buy a home at this time. How can he save the necessary funds to purchase a home in the future? Be specific in your recommendations. Be creative; think outside the box; find ways to accomplish goals. Future Value Payment per Period Number of Periods Interest Rate per year \$0.00 Recommendations 5 How would your advice to Gary differ if he were still single? How would your advice differ if he were married with children? 45 years old? 60 years old? 25 Final Grade

## LeasingProject

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 LEASING AN APARTMENT At some point in time, almost everyone will lease a place to live. Whether meeting a temporary or long-term housing need, leasing is a viable option for many individuals and families. In this project you will explore the rights and responsibilities of leasing an apartment and compare it with other housing alternatives. Points 1. Look through the newspapers, the local apartment guide, or other online sources to find a potential apartment to rent. When making your selection, you will want to consider its distance from work or school, its proximity to family or friends, the availability of public transportation or snow routes, etc. You might want to consider the desirability of the neighborhood the amenities it offers, and other features that attracted you to this location. Give at least 3 10 Reason # Description Weight Reason 1 Reason 2 Reason 3 Reason 4 Other(s) Total 100 5 2. You can obtain detailed information about apartments in local newspapers, a local apartment guide, or on related web sites. a. Determine the total monthly cost of living in the apartment. Expenses Monthly Rent Utilities (phone, gas, electric, cable etc.) Parking Fees Renter’s Insurance Other Required Fees (please specify) Other Optional Fees (please specify) 6 b. Determine the approximate cost of moving into the apartment. Application Fees Deposit on Apartment Deposits on Utilities Cleaning Fees Other Fees (Please specify). Moving Costs (rental truck, gas, etc. Please specify.) c. Determine the move-out costs. Carpeting Cleaning Fees Other Fees (Please specify.) 3. Go online and retrieve a standard apartment lease. Attach a copy of the lease. Your lease agreement should address several important factors, such as: Review your legal rights and responsibilities as outlined in the lease agreement. Review the landlord’s rights and responsibilities as outlined in the least agreement. Your lease agreement should address several factors, such as: Enter your answers below in these blank cells. What happens to your deposit when you decide to move out? Is it returned to you or held to cover other costs? 7 What happens if you break the lease? What is the policy on subleasing the apartment? What other restrictions, if any, are in place for tenants? Please specify. 4. Research the tenant laws in your state. Some state laws tend to favor the landlord over the tenant, while others tend to favor tenants rights. What conclusions (two or more) do you have about the tenant laws in your state? What surprised you the most when researching the laws regarding property rental in your state? 5. Leasing an apartment is only one option available when renting a place to live. You may decide that leasing a house is a better alternative for you or your family. What factors (two or more) would influence you decision on what type of residence to lease? How does leasing an apartment compare to leasing a house? 6. Most universities offer on-campus living options for their students. You can obtain info about university on-campus living options from various web sites. Compare the terms of a university housing contract with a standard apartment lease. How is it similar? How is it different? Attach either a copy of the first page of the lease in the second worksheet/tab of this file or include the website here. Website:

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 Page 1 of the Lease.

## Sheet3

Chapters

6, 7 and 9 (Submit ONLY the answer sheet)

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Chapter 6: Managing Your Money

CH6

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1 Interest Earned. Teresa has just opened a NOW account that pays 4.5 percent interest annually. If the account requires a minimum balance of \$200 and she maintains \$800 for the next 12 months, how much interest will she earn?

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CH6.2 Interest Earned. Lisa is depositing \$4,500 in an eight-month CD that pays 3.25 percent annual interest. How much interest will she accrue if she holds the CD until maturity? (each month has 30 days)

CH6.3 Value of CD. Travis has invested \$6,000 in a four-month CD at 5 percent (annual). How much will Travis have when the CD matures? (each month has 30 days)

CH6.4 Interest Earned. Claire has invested \$10,000 in a 13-month CD that pays 4 percent annually. How much interest will Claire receive at maturity? (each month has 30 days)

CH6.5 T-bill Return. Troy paid \$8,600 for a T-bill with a face value of \$11,000. What is Troy’s return if he holds the T-bill to maturity?

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CH6.6 Return on T-bills. Stacy purchased a \$42,000 T-bill for \$39,000. A few months later, Lauren sold the T-bill for \$39,500. What was Lauren’s return on the T-bill?

CH6.7.a Return on T-bill Rate. Brenda purchased a \$40,000, 90-day T-bill for \$38,550. What will Brenda’s return be when the T-bill matures?

CH6.7.b Annualized T-bill Rate. What will her annualized rate be?

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CH6.8 Interest Earned. On July 1st, Mia deposited \$5,000 in an MMDA that pays 4 percent interest annually. On October 31, Mia invested \$3,000 in a three month CD that pays annual interest of 6 percent. At the end of the year, how much interest will Mia have earned, assuming she hasn’t taken anything out of the money market deposit account? (each month has 30 days)

Chapter 7: Assessing and Securing Your Credit

CH7.1 Identity Theft. Go to this website; print and fill out the form, then enclose it to your hard copy Take Home Exam.

https://www.privacyrights.org/print/itrc-quiz1.htm

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CH7.2 Identity Theft. According to the filled out form, list where you are unprepared and how you can become prepared. Write your answers on the other side of the filled out form paper.

Chapter 9: Personal Loans

CH9.1 Origination Fee. Jack needs to borrow \$1,000 for the next year.

Bank South will give him the loan at 12 percent.

Sun Coast Bank will give him the loan at 8 percent with a \$60 loan origination fee.

First National will give him the loan at 7 percent with a \$45 loan origination fee.

CH9.1.a, b & c Determine the total interest and fees Jack will be charged in each case.

CH9.1.d Which loan should Jack choose?

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CH9.2.a to h Amortization. Beth has just borrowed \$5,000 on a four-year loan at 8 percent simple interest. Complete the amortization table below for the first five months of the loan.

Payment Number

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\$122

\$33.33

\$88.67

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CH9.2.i Add-On Interest Loan. How much interest did Beth pay if she had made the same loan as an add-on interest loan?

CH9.2.j How would her payments differ?

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CH9.3 Loan Payments. Tracy is borrowing \$9,000 on a five-year, 12 percent, add-on interest loan. What will Tracy’s monthly payments be?

CH9.4 Loan Interest. Sharon is considering the purchase of a car. After making the down payment, she will finance \$15,500. Sharon is offered two maturities. On a four-year loan, Sharon will pay \$371.17 per month. On a five-year loan, Sharon’s monthly payments will be \$306.99. If Sharon had been able to afford the four-year loan, how much interest would she have saved compared to the five-year loan?

CH9.5 Tax Savings. John and Cheryl just borrowed \$40,000 on a home equity line of credit. The interest rate for the loan is 5.75 percent for the entire year, and they took out the loan on May 1st. John and Cheryl are in the 28 percent tax bracket. What will be their tax savings for the first year ending December 31st?

CH9.6 Tax Savings. Noel has a 15 percent marginal tax rate. If he pays \$1,600 in interest on a home equity loan in the first year, what will his tax savings be?

TakeHomeExam#2 01-31d-2013-1

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Chapter 7: Assessing and Securing Your Credit

CH7.1 Identity Theft. Go to this website; print and fill out the form, then enclose it to your hard copy Take Home Exam.
https://www.privacyrights.org/print/itrc-quiz1.htm

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 Chapters 6, 7 and 9 (Submit ONLY the answer sheet) All work must to be submitted on-line one half hour before class on the assignment due dates. Merely posting final answers is insufficient. Last/Family Name: First/Given Name: RU ID: Signature: Please show your work and post the final answer. Final Answer DED Grade CH6.1 CH6.2 CH6.3 CH6.4 CH6.5 CH6.6 CH6.7.a CH6.7.b CH6.8 CH7.2 Answer on the other side of the filled out form paper. CH9.1.a CH9.1.b CH9.1.c CH9.1.d CH9.2.a CH9.2.b CH9.2.c CH9.2.d CH9.2.e CH9.2.f CH9.2.g CH9.2.h CH9.2.i CH9.2.j CH9.3 CH9.4 CH9.5 CH9.6 Point Deducted 50 Score Earned for Take Home Exam #2

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work must to be submitted on-line one half hour before class on the assignment due dates. Merely posting final answers is insufficient.

http://www.privacyrights.org/itrc-quiz1.htm
Identity Theft IQ Test
Copyright © 2000-2010

 All http://www.privacyrights.org/itrc-quiz1.htm Identity Theft IQ Test Send to Printer Copyright © 2000-2010 Privacy Rights Clearinghouse / UCAN Posted December 1, 2000 Revised June 2009 a. Are You at Risk for Identity Theft? Test Your “Identity Quotient” Points Item I receive several offers of pre-approved credit every week. (5 points) I do not shred the pre-approved credit offers I receive (cross-cut shredder preferred) before putting them in the trash. (5 points) I carry my Social Security card in my wallet. (10 points) I use a computer and do not have up-to-date anti-virus, anti-spyware, and firewall protection. (10 points) I do not believe someone would break into my house to steal my personal information. (10 points) I have not ordered a copy of my credit reports for at least 2 years. (20 points) I use an unlocked, open box at work or at my home to drop off my outgoing mail. (10 points) I do not have a P.O. Box or a locked, secured mailbox. (5 points) I carry my military ID in my wallet at all times. (It may display my SSN.) (10 points) I do not shred my banking and credit information, using a cross-cut “confetti” shredder, when I throw it in the trash. (10 points) I throw away old credit and debit cards without shredding or cutting them up. (5 points) I use an ATM machine and do not examine it for signs of tampering. (5 points) I provide my Social Security number (SSN) whenever asked, without asking why it is needed and how it will be safeguarded. (10 points) Add 5 points if you provide it orally without checking to see who might be listening nearby. I respond to unsolicited email messages that appear to be from my bank or credit card company. (10 points) I leave my purse or wallet in my car. (10 points) I have my driver’s license number and/or SSN printed on my personal checks. (10 points) I carry my Medicare card in my wallet at all times. (It displays my SSN.) (10 points) I do not believe that people would root around in my trash looking for credit or financial information or for documents containing my SSN. (10 points) I do not verify that all financial (credit card, debit card, checking) statements are accurate monthly. (10 points) Total Points Each one of these questions represents a possible avenue for an identity thief. Understanding Your Score: 100 + points – Recent surveys* indicate that 8-9 million people are victims of ID theft each year. You are at high risk. We recommend you purchase a cross-cut paper shredder, become more security-aware in document handling, and start to question why people need your personal data. 50-99 points – Your odds of being victimized are about average. 0-49 points – Congratulations. You have a high “IQ.” Keep up the good work and don’t let your guard down now. b. Make a list of those areas where the quiz indicates that you are unprepared and address each of those areas to increase your level of preparedness.

http://www.privacyrights.org/print/itrc-quiz1.htm

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 Name: Date: 3 1 Gary Grandview—A Continuing Case – Part 2 Managing Your Liquidity a. This is a continuing case (Parts 1 – 6 consideration all of the facts and provide analytical answers. Assume the role of Gary’s financial advisor. Facts provided in Part 1 should be considered while analyzing Parts 2-6. b. Please make sure that WRAP TEXT and MERGE and Alignment CENTER are ON. (*Excel Toolbar, Home Tab, Alignment section) c. To ensure your answers can be seen in the yellow highlighted text box: A) Increase the height of the text box. (Drag the bottom line of the row number ) B) Insert line (Right click on line, click insert, click row) d. Ensure printed copies are readabl e. Portrait Printer Perimeters. Save this file, then upload the document into your drop box. Case Questions Value of Points Possible Deducted Calculate the amount of interest that Gary’s Savings Account earns per year at 3% and compare it to what he is paying in interest on his credit card debt. Advise Gary what the comparison reveals and give him your professional advice on how he should proceed in the future. Advise Gary on which type of institution he should maintain his checking, savings, and retirement accounts. a) Checking account. b) Savings account. c) Retirement accounts. Gary is trying to decide if he should keep or sell his stocks and bonds. If Gary’s stock doubles in value over the next five years, what return (in %) would he realize? (Hint: Use the future value table.) Based on his projected annualized return, would it be advisable to sell the stocks to pay off his credit card? What should Gary do with the Bonds? 4 Gary is considering shopping for a new credit card with a better interest rate. Advise Gary on the pros and cons of opening a new credit card would have on his credit rating. 5 Gary is reluctant to pay off his credit card debt. He feels that he is young and debt is not a real issue at this time. How would you address Gary’s reluctance to pay off his credit card balance? Current Investment of Credit Card Payment Credit Card Payments Future Value Yearly Savings \$2, 8 Number of Periods Interest Rate per Period 22% 6% \$22,290.00 \$16,234.83 Compare and contrast the value of five years worth of credit card payments with the value of earnings of an investment of the same amount. (\$240.00 credit card payment X 12 months = \$2,880.00) Would your advice change if Gary were still single, and would that change if he were married with 2 children? a. 45 years old? b. 60 years old? 7 In talking to Gary you mentioned the increasing threat of identify theft. Comment on each of the items below and make recommendations for appropriate changes that will reduce his risk of exposure to identity theft. For convenience, Gary has his driver’s license number printed on his checks. He also uses checks to make virtually all payments, including transactions with local merchants. Gary has a debit card, but seldom uses it. Gary drives past the Post Office to and from work each day, he maintains a Post Office box and mails all letters and payments at the Post Office. Gary has several credit cards in his wallet, but uses only one regularly. He also carries his Social Security card, as he can never remember the number. Gary recycles, including old invoices, credit card statements, and d) bank statements after retaining them for the appropriate legal time period. e) Gary uses his cell phone for virtually all his telephone calls, including ordering merchandise and paying by credit card. Prepare a written report for Gary. Include in your recommendations the importance of managing liquidity and maintaining a good budget. Total 25 Final Score

## Sheet3

Gary Grandview – A Continuing Case – Part 2

Six months has passed. Gary Grandview is pleased with your assistance in preparing his personal financial statements and your suggestions for improving his personal financial situation.

Gary has left you a message on your voice mail. He has called you for guidance on questions that have come to mind after reviewing the information you have given him to date.

First, Gary wants to know what bank or brokerage firm he should move his accounts to. He has heard from friends that there are financial institutions that will assist him in making investment and money management decisions, however, he is not sure where to find them. Gary feels that savings accounts and bonds are boring and has no desire to have either one because the interest rates are so low.

Second, Gary is concerned about his liquidity. Gary now has two credit cards; one of which he opened (\$10,000 credit limit) while in college because they were offering a free ball cap. Gary has reached the maximum of his credit limit on the first card and has accumulated \$2,000.00 on the second card (\$5,000 credit limit). Each credit card company charges Gary an annual fee of \$40 and
22% interest rate on the revolving unpaid balance. Gary is questioning whether or not it is necessary to pay off his credit card at this time. It is becoming increasingly difficult to make the combined higher \$240.00 monthly payments.

Third, Gary has invested in speculative tech stock. He is reluctant to sell his stock to get cash to pay off part of the credit card balance because he thinks the stock could double in value over the next five years.

The last item of concern on Gary’s list is the volume of mail he is receiving. Gary has received multiple offers for new credit cards in his house mail box, and his junk mail is getting uncontrollable. Gary is a man on the move and often conducts his private business on his cell phone. Gary likes the freedom of being able to talk on the go.

Gary Grandview – A Continuing Case – Part 3

Purchases and Financing a Home

Gary informs you that he is looking to make some changes in his life. Gary decides it might be the right time to upgrade his transportation and housing situations. Gary has decreased several of his monthly out-flows, and he now has a positive cash flow of \$225.00.

Gary’s wants your opinion on the new retirement policy at his job. The company is now offering their employees a matching fund program. The company will match up to \$3,600.00 per year in each employee 401 (k) plan. The company is also offering e-classes on investment strategies. The units are designed to offer employees suggestions on how to invest their 401 (k) retirement funds.

Gary is surprised at the rising cost of gas, and he decides it might be time to purchase a new SUV for \$35,000. The new models have better gas mileage and attractive accessories on the dash. He still owes \$15,800.00 on his two-year old pickup (which has \$58,000 miles) and has found a buyer who will pay him \$18,800 cash. This would enable him to pay off his current car loan and still have \$3,000 for a down payment on the SUV. He would finance the remainder of the purchase price for five years at 4%.

Anticipating your objections to purchasing the SUV, Gary has an alternative plan to lease the SUV for three years. The terms of the lease are \$600.00 per month, a \$0.20 charge per mile over 15,000 miles annually, and \$1,200 due upon signing.

Gary would also like to purchase a home. He knows that he will enjoy the advantages with ownership, and he is eager to reduce his tax burden.

Recently, Gary moved closer to work and is renting a 2 bedroom, 2 bathroom condo just inside the city limits for \$1,000.00 per month plus utilities and his renter insurance has increased to \$52.00 per month. Gary’s neighbor is moving to another state, and he is willing to sell his unit; therefore, purchasing the unit next door could be an option.

Gary made some inquiries and found a lender that has approved him for \$125,000 on 30 year mortgage @ 5%, with 10 percent down. The condo next door is listed for \$120,000. Closing costs due at signing will total \$3,200. The property taxes on his condo will be \$2,800 per year, his Property Owners’ Association (POA) fee will be \$189.00 per month, and his household insurance will increase to \$500.00 per if he buys the condo.

Another option would be to purchase a 3 bedroom, 2 bathroom ranch style house just outside of the city. The house is in need of some repairs, and Gary knows very little about home repairs; however, the house has a nice yard, great for entertaining. The ranch house is \$130,000; taxes are \$3,800 per year, and the lender is offering a 30-year mortgage @ 5% with 10% down. The closing costs at signing will be \$3,300, and homeowners insurance will be \$600.00 per year.

Gary Grandview Part 3 Reading Segment Revised 2.28.2013B SL

InsertPicture

Gary Grandview —A Continuing Case

This is a continuing 6 part practical application of the material learned in class.

Each part of the Continuing Case study has a reading assignment document and a homework document.

Utilize the all information provided to you. Read the Case and answer the questions in the coordinating Gary Grandview Excel file.

As you progress through the sequential parts, the financial information will be updated.

Analyze the material and give Gary advice from the perspective as his financial analyst. Give Gary advice on items he may or might not have previously considered.

Answers are to be provided using proper grammar and in business language tone.

Gary Grandview — Part 1

Gary is a 25 year old single male who graduated from college a few years ago. Gary has been working as a computer specialist for an ‘up and coming’ company for the past 3 years. Gary has an active lifestyle. He enjoys going out with friends during the week and getting out of the city at least once per month to relax and go camping. Gary’s favorite camping spot is on the shores of Lake Oswego approximately 40 miles from where he lives.

Gary received a raise last year and now earns a gross income of \$48,000 per year. Gary’s tax return revealed that he paid \$3,672.00 in FDIC payroll taxes [\$696.00 in Medicare and \$2976.00 in Social Security] and contributed \$4,680.00 toward his medical benefits. Gary has college loan payments of \$320.00 per month on \$32,000 student loans (Current balance 16,880.00). Gary’s receives his paychecks by automatic deposit and does not always pay attention to the balance in his checking account.

Gary is renting a 2 bedroom apartment in a building that the owner is considering converting into Condominium Complex. Two years ago Gary purchased a new red 4 wheel drive pick-up for \$24,300 (\$ 18,500 Blue Book value) and his payments are \$358.00 per month. The pickup has a current loan balance of \$18,200.00, and pays \$325.00 per month in auto insurance coverage.

Where Gary currently resides, there is no public transportation available, therefore he commutes to work each day. Traffic is heavy getting into the city therefore the drive to work often takes Gary 35 – 45 minutes. Gary likes his pickup and is impressed that it gets 17 miles to the gallon.

Gary has some decisions to make and comes to you (his new best friend and financial analyst) for some advice. His spending is a little out of control and asks your help in creating a budget he can live with. You discover that Gary has a few other monthly expenses that Gary forgot to mention and need to be included in his monthly budget:

Rent 850.00

Renter’s insurance 50.00

Utilities (gas and electric) 110.00

TV, Internet, & House phone 120.00

Cell phone (personal calls) 225.00

Food (consumed at home) 200.00

Clothes 170.00

Car expenses (gas, maintenance) 254.00

Camping 325.00

Entertainment (dining out, golf, weekend trips) 400.00

Gary is surprised at how much money he is spending on living costs. He admits that when he is short on cash he uses his credit card and has accumulated a balance of \$8,600.00. Gary also admits that sometimes he has a hard making the \$200.00 credit card payments on time.

Gary currently has \$2,110.00 in his checking account and \$490.00 in his savings account. His bank requires automatic deposits to maintain a free checking account. He has household furnishings valued at \$2,700.00, \$2,500.00 in speculative Green Planet Technology Stock and a small ten year \$500.00 municipal bond he received from his mother upon graduation.

Gary has a few concerns he would like you to consider regarding his payments. Gary’s credit card payment, student loan and rent are all due on the first of the month. Gary wants to retire when he is 50. Gary knows he should start investing in a retirement plan; however he feels he cannot afford it even though his employer offers a matching fund up to \$3,600 per year. Gary thinks he should be able to afford to start investing in the retirement fund in 5 years. Gary is confident he will be able to retire as planned if he invests \$300 per month.