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Simon Harris wants to buy a new car to take to university in September. He has estimated that a good second-hand car will cost him £2500. Simon’s dad has agreed to give him £1500 at the end of August as an early birthday present, to help him buy the car.
Simon is going to try and cut down on his spending. He estimates that he will spend £30 a month on clothes, magazines and music, and £25 a month socializing.
At the start of March, Simon had £450 in his bank account. He earns £150 a month working with his uncle.
The following information is what actually happened to Simon. Revisit the cash flow forecast on the next slide and decide whether Simon can still afford his car.
Simon spent £40 shopping in May and August.He worked a few extra hours in June and earned £175.He spent £80 going to a music festival in April.He only earned £100 in March.