Solved: Cindy and Jack have always practiced good

financial habits in

Cindy and Jack have always practiced good financial habits, in particular, developing and living
by a budget. They are currently in the market to purchase a new car and have budgeted $ 300
per month for car payments. While visiting a local dealership, a salesman, Scott, shows them a
car that meets their financial requirements. Then he insists that they look at a much more
expensive car that he knows they would prefer. The more expensive car would result in
payments of $ 500 per month. In discussing the two cars, Cindy and Jack tell Scott that the only
way they can afford a more expensive car would be to discontinue making a $ 200 monthly
contribution to their retirement plan, which they have just begun. They plan to retire in 30 years.
Scott explains that they would only need to discontinue the $ 200 monthly payments for five
years, that is, the length of the car loan. Scott calculates that the $ 12,000 in lost contributions
over the next five years could be made up over the remaining 25 years by increasing their
monthly contribution by only $ 40 per month, and they would still be able to achieve their goal.

a. Comment on the ethics of a salesperson who attempts to talk customers into spending more
than they had originally planned and budgeted.

b. Is Scott correct in his calculation that Cindy and Jack can make up the difference in their
retirement by increasing their monthly contributions by only $ 40 per month for the remaining 25
years?

Cindy and Jack have always practiced good financial habits in

ANSWER
https://solvedquest.com/cindy-and-jack-have-always-practiced-good-financial-habits-in/

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