Question:
Leslie earns $2000 a month and rents an apartment for $600 a month (utilities included), and also has a credit card with an annual interest rate of 7% and a balance of $1500. She currently has no savings. Design a monthly budget for Leslie so that at the end of two years, the credit card balance is as low as possible and Leslie has as much savings as possible. (You may assume that if she opens a savings account, it draws 3% annual interest compounded monthly.) Remember that Leslie needs to use some money for food and miscellaneous expenses.
Assuming that she sticks to the budget you design, what will he credit card balance be at the end of two years, and how much will she have in savings?