Question

Question 1 (3 points)  ***PLEASE REFER TO THE ATTACHED FILES FOR THE COMPLETE DETAILS***

Use the following information for the questions that follow:

Case Study -Natalie's situation

Natalie has found a new job in Windsor, which pays her $23,051/yr. Natalie gets paid bi-weekly an amount of $702.19 (after all deductions). She rents an apartment with a roommate, Francine. As a result, some items in her budget can be shared. These are some of her thoughts:

 

Rent: We share a 2 -bedroom apartment, each paying $200 a month for rent

 

Food: Francine and I figure that we should be able to buy groceries for about $70/week (approx. $150 /mth each)

 

Car: Insurance costs me $780 annually, I drive an average of 150 km/week (to and from work and pleasure driving); at 6L /100km and $0.659/L. (You have some calculations to do for gas cost!) Since my car is 8 years old, I'd better also allow $90 each month for maintenance and repairs.

 

Utilities: Others in our apartment building say that hydro should be no more than $50/month, and I'll allow $15/month as my share of the telephone bill and $20 as my share of the cable bill. Total: $60/month ($ 50/ 2 + $ 15 + $ 20)

 

Entertainment and recreation: Movie and/or eat out once a week, plus "Y" membership at $25/month shouldn't be more than $100/month in total.

Clothing: Last year I spent nearly $2000 on clothing, but in Windsor I won't need the heavy winter clothing that I did in Timmins, so... $1800/yr.

 

Personal, medical and dental, gift and Donations: Many of these items I've had no personal experience with, so l'm going with costs suggested by my parents. ($75/mth, M&D $50/mth and G & Don. $60 /mth)

Car payment: I still have to make payments on the loan I took to ($155/mth)