Question

In: Finance

Prince has graduated from college and has been working nearly 1 year now, earning $45,000 for...

  1. Prince has graduated from college and has been working nearly 1 year now, earning $45,000 for a firm. She expects to remain at the firm another few years. She lives at home still to save money, has $5,000 in credit card debt, $10,000 in student loans, $1,500 in savings beyond her usual checking account balance. She likes eating out and going to clubs on weekends. What challenges does Prince face budgeting for herself and setting priorities? Discuss.

Solutions

Expert Solution

Total capital= $45000+$5000+$10000+$1500= $61500

As prince completed her graduation she has so many dreams to fulfill and so many expenses that she have to pay.

Because of so many choices available to prince to life a better life he have to set some priorities so that he can manage to do savings.

The major problem in budgeting is setting priorities and determining what to do and what she can postpone to later days. Being a youngster it is very important to determine all those things which are important and make a budget for them. In the age when a person wants to do so many things she have to set her limits and plan her life accordingly.

From her capital she might have to meet some future needs like future education fees, buying home,buying car etc. According to her choices she can make some budget for current joys like for clubbing, eating out and then for some expenditure to meet living i.e. food , shelter etc.and also some savings for future contingencies and some savings for specific needs that she wants to do in future.

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

Mary Lou has now graduated from college and is earning $28,000 per year. She would like...
Mary Lou has now graduated from college and is earning $28,000 per year. She would like to trade in her 1996 Nissan Stanza for a new car but is unsure what she can afford. She still owes 11 payments of $189 for a total of $1,970 on her Nissan and $5,800 to her father's equity line. Her father's equity line requires a minimum monthly payment of 2 percent of the outstanding balance, has an interest rate of 8.75 percent, and...
ACCY 415 Individual Assignment #1 Assume you have graduated from college, are earning a steady income...
ACCY 415 Individual Assignment #1 Assume you have graduated from college, are earning a steady income and are considering purchasing the condo you are currently renting. You can purchase the condo for $258,000. You have saved $24,000 for the down payment and the bank is willing to loan you $234,000 under a 30-year fixed rate mortgage. The sale will take place at the end of 2020.   Payments will be due monthly beginning January 31, 2021. Required: Using Microsoft Excel, develop...
Stewart Myers recently graduated from college and started working as a management consultant. Stewart has a...
Stewart Myers recently graduated from college and started working as a management consultant. Stewart has a $50,000 student loan balance and he paid $1,200 interest in 2014. Stewart Owns several savings accounts and received a total interest income of $500 in 2014. He contributed 2 percent of his $79,500 salary to his IRA account in 2014. As he completes his tax return for 2014, use the information above and below to help him answer the following questions. •Stewart’s itemized deduction...
You graduated from Loyola two years ago, and you are now earning a salary of $50,000...
You graduated from Loyola two years ago, and you are now earning a salary of $50,000 per year. The total cost of your Loyola education was $200,000. You are now thinking about earning an MBA degree. Because of your excellent education at Loyola, you are eligible for the one-year, accelerated program at Global University, which has a cost of $120,000 for tuition, room, board, books, etc. To earn the MBA, you would have to quit your job and study full-time....
You are now a certified financial planner who has recently graduated from college. Your parents are...
You are now a certified financial planner who has recently graduated from college. Your parents are helping you to get started in your new business. Since your parents own a midsize company, they decide that IF you can come up with a good retirement plan for the 275 employees that they employ, they will hire you as the financial planner for the business. They want to make sure that all the employees in the company have some medical benefits as...
You are now a certified financial planner who has recently graduated from college. Your parents are...
You are now a certified financial planner who has recently graduated from college. Your parents are helping you to get started in your new business. Since your parents own a midsize company, they decide that IF you can come up with a good retirement plan for the 275 employees that they employ, they will hire you as the financial planner for the business. They want to make sure that all the employees in the company have some medical benefits as...
The value of a college degree is greater than it has been in nearly half a...
The value of a college degree is greater than it has been in nearly half a century, a least when compared to the prospect of not getting a degree (www.pewresearch.org, January 28, 2014). Due to this fact, more and more people are obtaining college degrees, despite the soaring costs. The accompanying table shows the proportions of college degrees awarded in 2010 by colleges and universities, categorized by a graduate's race and ethnicity. The race and ethnicity of 500 recent graduates...
Two years ago, after you graduated from college and landed a job where you are earning...
Two years ago, after you graduated from college and landed a job where you are earning $76,500 a year, you purchased a car from your uncle and have been paying $300.00 a month. You have another year to go. You are now ready to participate in the American Dream and contemplate buying a house. Current 30-year mortgage rates are at a low annual rate of 3.25%. Your monthly mortgage payment cannot be more than 34% of your gross monthly income....
Twins Jacob and Jacquelyn, graduated from college and started working in the family restaurant business at...
Twins Jacob and Jacquelyn, graduated from college and started working in the family restaurant business at age 25. Each sibling developed their own plan to provide for their retirement. Both plans earned 10% annual return, and both siblings plan to retire at age 65. Jacquelyn started immediately, investing $3,500 per year for the next 10 years into an individual retirement account, and then makes no additional cash contributions into her IRA account. Jacob plans to wait 10 years until he...
This year Evan graduated from college and took a job as a deliveryman in the city....
This year Evan graduated from college and took a job as a deliveryman in the city. Evan was paid a salary of $72,900 and he received $700 in hourly pay for part-time work over the weekends. Evan summarized his expenses as follows: (use 2020) Cost of moving his possessions to the city (125 miles away) $ 1,200 Interest paid on accumulated student loans 2,820 Cost of purchasing a delivery uniform 1,420 Contribution to State University deliveryman program 1,310 Calculate Evan's...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT