Courtney Bennett recently graduated from college and accepted a position in Bangor, Maine, as an assistant librarian at the university library. Courtney has no debts, and her budget is shown in the second column (Single Working Person) in Table 3-5 on page 96. She now faces the question of whether to trade in her old car for a new one requiring a monthly payment of $400. Taking the role of a good friend of Courtney, suggest how Courtney might cut back on her expenses so that she can afford the vehicle.
(a) What areas might be cut back?
(b) How much in each area might be cut back?
(c) After finishing your analysis, what advice (and possibly alternatives) would you offer Courtney about buying the new car?