How much will you have left to spend next year

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Reference no: EM132042669

Question: As a newly-minted MBA embarking on a career in investment banking, you must own a new car immediately. The car costs $28,320. You also have to spend $3,248 on new suits for work. Your salary this year is $42,000, and next year it will be $46,000. Your routine living expenses this year will be $34,000. You plan to make up the difference between current income and current consumption by borrowing; the interest rate for the loan is 14% and you intend to repay the loan, plus interest in one year. How much will you have left to spend next year?

Reference no: EM132042669

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