PFIN 7:STUDENT EDITION-MINDTAP (1 TERM)
7th Edition
ISBN: 9780357033647
Author: Billingsley
Publisher: CENGAGE L
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Question
Chapter 2, Problem 5FPE
a)
Summary Introduction
To reconcile: The differences in given situation
b)
Summary Introduction
To reconcile: The differences in given situation
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Focus Question
1. Most family members earn money by working for salaries.
State THREE other means by which income is earned.
2. List THREE guidelines that should be followed to ensure that the family income is spent
wisely.
3. A family consisting of a baby, a child attending nursery school and working parents
decides to prepare a budget for three months.
a. Explain briefly THREE factors that the family must take into consideration before
preparing the budget.
b. The family in the scenario has a limited income and decides to purchase a food
processor instead of a television set. Suggest 2 possible reasons for this decision.
What is the amount of Laura’s monthly cash outflows if she chooses to rent the apartment by her herself?
Use the rent amount for the one bedroom apartment to complete her budget?
This is Ben’s budget. Use his budget to determine the answer to the following question:
Scenario: Suppose Ben wants to buy a house for $251,599.
Calculate his 20% down payment for this home.
Chapter 2 Solutions
PFIN 7:STUDENT EDITION-MINDTAP (1 TERM)
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- Organize a budget sheet based on their current expensesarrow_forward10. Cameron is in grade 12 and works part-time in a bike shop. His monthly budget is shown. Expenses ($) transportation clothes Income ($) March 1-15 458.68 109.00 March 16-30 494.02 100.00 entertainment 125.00 college savings 200.00 car fund 175.00 motorcycle lessons 250.00 What should Cameron do to his budget, if his income remains the same for the next month? a. Increase his clothing expense by at least $6. b. Reduce his clothing expense by $2. c. Reduce his clothing expense by at least $7. d. His budget is already balanced.arrow_forward2arrow_forward
- This is Ben’s budget. Use his budget to determine the answer to the following question: Scenario: Suppose Ben wants to buy a house for $251,599. For a 30-year mortgage, Ben gets a 5% interest rate. Calculate his monthly payments for this 30-year mortgage, after the 20% down payment.arrow_forwardThis is Ben's budget. Use his budget to determine the answer to the following question: Scenario: Suppose Ben wants to buy a house for $251,599. For a 30-year mortgage, Ben gets a 5% interest rate. Calculate his monthly payments for this 30-year mortgage, after 20% down payment. Monthly Income Monthly Expenses ITEM V AMOUNT ITEM Column1 VAMOUNT Income Source 1 $2,000.00 Rent $800.00 Cell phone $100.00 Groceries $200.00 Car payment $273.00 Auto expenses $120.00 Student loans $250.00 Credit cards $100.00 Auto Insurance $78.00 Personal care $50.00 Entertainment $100.00 Miscellaneous $50.00arrow_forwardThis is Ben’s budget. Use his budget to determine the answer to the following question: Calculate the amount of income tax Ben owes monthly using the tax rate of 25%.arrow_forward
- This is Ben’s budget. Use his budget to determine the answer to the following question: Scenario: Suppose Ben wants to buy a house for $251,599. For a 15-year mortgage, Ben gets a 4% interest rate. Calculate his monthly payments for this 15-year mortgage, after the 20% down payment.arrow_forwardShe wants to know the amount of money she will be receiving after 6 months What I Can Do Read and analyze the situation below then answers the question gve. Your mom asked your opinion if she will be joining the cooperative in her office. and wanted to buy something in December. The cooperative wants her to contribute P1,000 per month beginning in June 2020 which will earn 3% compounded monthly. How much will be the future value of your mom's contribution at the end of December 2020? Tasks: Tou need to prepare a report showing a cash flow diagram on the total amount Of money your mother will earn at the end of December. Teport, write a conclusion stating your opinion to help your mom to decide. At the end of your Cash Flow Diagram onclusion:arrow_forwardIf the Potinsky household spends $49,600 annually on all living expenses and long-term debt, calculate the amount recommend for an emergency fund. How might household circumstances, e.g., wage earners in the household, available credit, and type and stability of employment, affect this decision? 1. The emergency fund amount would range from $? to $?. Round to the nearest dollar and enter the range from lowest to highest. 2. The (higher/lower) the number of wage earners in the household, the (more/less) credit available, and the (higher/lower) the stability of employment; the higher the emergency funds should be.arrow_forward
- Angela's monthly disposable income is $1,749. She has monthly expenses of $1,548 (including recreational expenses of $219) and net cash flow of $201 per month. Angela analyzes her personal budget and decides that she can reduce her recreational spending by $48 per month. If Angela is saving $249 per month, what is her savings rate (i.e., savings as a percentage of disposable income)? Angela's savings rate is ___%. (Round to two decimal places.)arrow_forward4. You are in your 4th year now and realize that you need to create a budget for yourself. You make $1,500 a month at your part-time job, and have $1,350 in monthly expenses. Your parents encourage you to start an RRSP (registered retirement savings plan) by putting the rest of the money you have at the end of every month into an account that pays an average of 4.3% per year compounded monthly. How much will you have when you retire in 45 years if you continue?arrow_forwardIf the Potinsky household spends $27,600 annually on all living expenses and long-term debt, calculate the amount recommend for an emergency fund. How might household circumstances, e.g., wage earners in the household, available credit, and type and stability of employment, affect this decision? The emergency fund amount would range from $? to $?. Round to the nearest dollar and enter the range from lowest to highest.arrow_forward
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