1. Terry created the following monthly budget for herself:

Food $350 Clothing $150 Transportation $350 Housing $900

Entertainment/Recreation $225

However, she actually spent $438 for Food; $318 for Transportation; $900 for Housing; $123 for Clothing; and $345 for Entertainment/Recreation.

a. List which categories had budget surpluses and list which categories had budget deficits (and how much of each, in $)?

b. What was Terrys overall surplus/deficit situation (in $) ?

2. Belinda plans to reduce her monthly spending by $125 per month. Calculate the future value of this savings over the next 8 years. (Hint: Calculate her annual deposit contribution, and assume an investment interest rate of 7%)