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    Personal Budget to Save for a Car

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    Assuming you would like to purchase a new car next year, develop a personal budget for yourself or a friend for this year. Make sure to include a savings plan to save enough for a down payment, taxes, license, and insurance. Discuss the situations that might derail the budget along with a plan for you to deal with these issues.

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    Solution Preview

    Monthly Income=$3,100
    Current Saving= $1,200

    Car Purchase Amount=$26,500
    10% Downpayment=$2,650
    Tags, Taxes, License=$2681.25
    Total needed at purchase=$5331.25
    Total needed net of savings=$4131.25
    Expected monthly car payment=$485
    Expected Monthly Insurance=$75

    Monthly Expenses
    Mortgage ...

    Solution Summary

    The problem outlines how a person could develop a budget with the intent of increasing savings and eventually buying a car.