Directions: Read the business problem below. Apply your understanding of using numbers to solve problems and be sure to show your work. Amy has gone through her statements for the year and created this chart to summarize her expenses. Amy's Annual Expenditures

Amy's Annual Expenditures

Rent $ 8,580.00

Utilities $ 3,480.00

Internet & Phone $ 1,896.00

Entertainment $ 2,232.00

Student Loan Payment $ 4,116.00

Home & Auto Insurance $ 1,164.00

Food $ 6,000.00

Car Payment & Gas $ 2,820.00

Travel $ 1,200.00

Savings $ 1,200.00

Personal Expenses $ 1,847.00

Pet Expenses $ 965.00

Business Expenses $ 4,800.00

Q1. Amy's day job is as a secretary at a law firm. After taxes and health insurance, she nets $1550 biweekly. How much does Amy net in a year from her day job?

Q2. Based on her net income and annual expenditures summary, by how much did Amy over or under spend this year?

Q3. If she wanted to present her expenditures in something other than a table, which format would you recommend she use and why? Q4. If Amy takes this year's savings and deposits it into an 18-month Certificate of Deposit account earning 1.25% APY with monthly-paid interest, how much interest will she earn?

Q5. The "Business Expenses" portion of Amy's expenditures refers to the cupcake business she started out of her home. It is becoming increasingly popular, and she is considering taking out a loan of $5000 that will help her increase the size of her business. Determine the monthly payments for each loan offer below.

2-year loan

Business loan amortization schedule

Date: Interest Principal Balance

Jan, 2020 $26 $ 196 $4,804

Feb, 2020 $ 25 $ 197 $4,606

Mar, 2020 $ 24 $ 198 $4,408

Apr, 2020 $ 23 $ 199 $4,209

May, 2020 $ 21 $ 200 $4,008

Jun, 2020 $ 20 $ 201 $3,807

Jul, 2020 $19 $ 202 $3,604

Aug, 2020 $18 $ 203 $3,401

Sep, 2020 $17 $ 205 $3,196

0ct, 2020 $16 $ 206 $2,991

Nov, 2020 $15 $ 207 $2,784

Dec, 2020 $14 $ 208 $2,576

2020 $239 $2,424 2,576

3-year loan

Business loan amortization schedule

Date: Interest Principal Balance

Jan, 2020 $26 $127 $ 4,873

Feb, 2020 $25 $128 $4,746

Mar, 2020 $24 $128 $4,617

Apr, 2020 $24 $129 $4,489

May, 2020 $23 $129 $4,359

Jun, 2020 $22 $130 $4,229

Jul, 2020 $22 $131 $4,098

Aug, 2020 $21 $131 $3,967

Sep, 2020 $20 $132 $3,835

0ct, 2020 $20 $133 $ 3,702

Nov, 2020 $19 $133 $ 3,568

Dec, 2020 $18 $134 $ 3,434

2020 $263 $1,566 $ 3,434

Q6. Looking at the coming year's expenditures, Amy expects all expenses to be the same except for "Car Payment and Gas". She still plans to spend $60 per month in gas, but her car will be paid off. If she uses the money from her car payment to make her loan payments, which loan could she afford?