Consider each of the following case studies. For each scenario, make a monthly budget. include a description of any assumptions made.

Case Study 1

Part 1

Kevin has recently graduated from a college program in Computer Engineering Technology and has accepted a job with a computer networking company in Kitchener, Ontario. His monthly salary after deductions is $2235. Kevin rents a one-bedroom apartment in town. His monthly rent is $950 plus electricity, phone, internet, and cable. Kevin owns an older car which seems to need many repairs lately. Kevin is also a big movie fan. Between going to the movies and 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 charges interest of 6.9% /a, compounded monthly. The loan is amortized over 3 years. Use the TVM Solver to determine his monthly payments. make a

revised budget to reflect this expense. You will likely need to reduce some of Kevin's expenses so that he can afford his car payments.

Case Study 2

Pratima and her husband Chad own a house in Belleville, Ontario. They have bi-weekly mortgage payments of $775.00. They also pay property taxes of $3600 per year, and house insurance of $450 per year.

Pratima works as a Certified General Accountant, while Chad is an estimator for a construction contracting company. Their combined monthly net income is $6362. They have a three-year old son, and a four-year old daughter. Both children are in full-time daycare and are enrolled in a variety of activities including swimming, soccer, and dance. Pratima and Chad would like to start an education savings plan for both children.

Pratima's car is paid for, however Chad has monthly payments of $575.00 on a minivan. Pratima has a short commute to work, but Chad uses a lot of gas driving to building sites for his job.