- Prepare forecasts of taxes and levies, personal income and expenses and the personal cash budget (projected cash flow budget/statement) for the next financial year for the individual identified in the Assessment 1 Case Study.
- Comment on the expected state of next year’s personal finances for the individual identified in the Assessment 1 Case Study.
- With respect to any (each of the) loans being considered by the individual identified in the Assessment 1 Case Study:
a. What would be the monthly and annual payments?
b. Which contract provides the more attractive effective interest rate?
c. Would the ‘best’ loan evaluated improve the financial position of the individual identified in the Assessment 1 Case Study if they decide to take it (i.e., does it provide a cash flow improving alternative to the existing loan or other net benefit)?
Sample Solution