Mary-Jane has borrowed a one-year loan of $5,000 from the bank at an annual interest rate of 15%, compounding monthly. She used the borrowed money to buy presents for herself and family. With the loan commitment, she has to make the loan repayment every month for the next 12 months. Mary-Janes bi-weekly after-tax income is $300. Her bi-weekly living expenses (including bi-weekly rent, electricity, transportation costs, food, etc) are $250. (a) Using the following table, prepare a monthly personal cash flow budget for Mary-Jane. What is the monthly cash surplus or deficit? Clearly show all calculations.

MARY-JANES MONTHLY PERSONAL CASH FLOW BUDGET ($)

Surplus/(Deficit):

1) Clearly show the calculations for monthly loan repayment:

2) In 40 words or less, advise what Mary-Jane should do. [Answers beyond word limit will NOT be marked.]