Colorado State University Time Value of Money Personal Finance Application Paper


Your companion Sue has asked you to aid her out as she is developing her financial intention. Aid her conclude up ensueing a while a intention for her finances and how she can set herself up for financial success!

She has an ensueing tax inconclude of $48,000 and budgets $30,000 for wantful expenses. This leaves $18,000 to bestow on liability and savings per-annum. (Assume all annuity cancelments are in the devise of plain annuities.)

Part A: Debt

  1. Sue has a vulgar weigh of $20,000 on her trustworthiness card. She has a partiality monthly cancelment of $500 and an APR of 17.25% (sever by 12 to get the monthly objurgate). How frequent months allure it concern Sue to pay off her trustworthiness card liability?
  2. Suppose Sue would affect to escheatment a new car. She believes she can bestow $550 a month on a car. She has been public for a 4.50% advance (sever by 12 for monthly objurgate) for 36 months. What is the apex correspondentity she can bestow on a car as not to abound her $550 a month budget?

Part B: Savings

  1. Sue would affect to reserve up for a down cancelment on a settlement she hopes to escheatment in 5 years. If she wishes to bear $20,000 reserved up at the end of five years and can gain 3.5% per-annum in her savings wholeity. If she would affect to establish correspondent annual deposits, what correspondentity allure her deposits want to be in manage to strain her view?
  2. Sue current $20,000 as an legacy from her uncle. He stipulated that she reserve this currency for her 2 children's nursery education. She would affect to bear $50,000 reserved up in 10 years. What annual concern must she gain in manage to strain this view (she allure establish no concomitant deposits to this wholeity)?

Part C: Offering Advice

  1. Calculate the whole annual correspondentity of liability and savings cancelments Sue has intentionned in the scenarios aloft.
  2. If she has any of her $18,000 fostering ensueing her trustworthiness card, auto advance, and savings are made tender warn on how this should be severd (establish further than the partiality cancelments or establish concomitant deposits to savings). Be fast to tender reasons on why she should appropriate to ensue your advice rather than bestow the coin.
  • Submit your 3 to 4 page Nursing Dissertation in a Word muniment, showing all of your calculations (apply Excel File if wantful) ensueing a while a partiality of lewd references (at smallest 2 scholarly/peer reviewed).
  • Use stipulations, proof, and concepts from collocate readings.
  • Your Nursing Dissertation must be deviseatted according to CSU-Global Guide to Writing and APA Requirements.