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. Hismonthly salary after deductions is $2235. Kevinrents a one-bedroom apartmentin town. Hismonthly rent is $950 plus electricity, phone, internet, and cable.Kevinowns an older car which seems to need many repairs lately. Kevin is also abig movie fan. Between going to the movies and buying DVD's, Kevinestimates that he spends $60 per week.

Part 2

Kevinborrows $12 000 to buy a new car. Hiscar loan charges interest of 6.9% /a, compounded monthly.Theloan is amortized over 3 years. Use the TVM Solver to determine his monthly payments. Create an 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.