Personal Finance Case - Praveena has just completed her degree in Physics and has found a job as an employee in a nanotechnology research laboratory. She is thinking of moving out of her parents house into a rented one-bedroom flat in the city centre t

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Part A

Question 1. Praveena has just completed her degree in Physics and has found a job as an employee in a nanotechnology research laboratory. She is thinking of moving out of her parents' house into a rented one-bedroom flat in the city centre to be closer to her friends and job. As her life is about to change significantly, she wants to plan ahead by calculating what her monthly budget will look like.

Here is what she has drafted:

Income: Her gross monthly earnings will start at £1625.

Expenditure:

* Council tax: £1200 (yearly)

* Utility bills: £240 (quarterly)

* Weekly food spending: £80

* Monthly entertainment: £200

* Weekly rent: £130

She would also have to spend another £300 during the first month in order to decorate her flat and buy some kitchen appliances. Her parents have agreed to lend her £420 with no interest to cover installation costs. She will use monthly surplus to pay them back. They will also put down the six weeks' deposit for the flat so she does not have to budget it. Praveena will pay her council tax in ten