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Family Finance

Family Finance. E-mail: GRZEGORZ.MICHALSKI@UE.WROC.PL www: HTTP://MICHALSKIG.UE.WROC.PL/ Mobile: 48.503452860 5 meetings + 1 exam (test) Next meeting: 18 th March. Douglas A., E. Lewin, Family Finance, Dearborn Trade 2001.

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Family Finance

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  1. Family Finance

  2. E-mail: GRZEGORZ.MICHALSKI@UE.WROC.PL www: HTTP://MICHALSKIG.UE.WROC.PL/ Mobile: 48.503452860 5 meetings + 1 exam (test) Next meeting: 18th March. Douglas A., E. Lewin, Family Finance, Dearborn Trade 2001. Millar R., A Complete Guide to Family Finance, Kogan Page Publishers 2004. Israelsen C. L. , R. O. Weagley, Personal & Family Finance Workbook, Kendall Hunt Pub 2006. Family Finance

  3. Family Finance cases: • Create himself or buy? (home products, home food or in restaurants, who should repair a tap, husband or plumber (tap expert), hire a maid? etc. • Child in home or in kindergarden? • (Homeschooling) Child in home or in school? • Car: buy older but without the credit or a new but with credit? • How many cars in a family? • House or a flat? Why? • A garden or a free time with fruits from a hipermarket? • What kind of car? Which one?

  4. Car: buy older but withoutthe credit or a new but with credit? • Daewoo Nubira / Suzuki Forenza / Chevrolet Lacetti Wagon (it is the same car). You plan to change car in every 6 years. In every year, car is used for 25oookm distance and for 150ooo km distance during 6 years. • You have only 3ooo Euros. What do you prefer: New car (12ooo) or Used one (3ooo). • Insurance: 3.5% for a new or 8% for an old. Your car value is in every year smaler, and go down 18%. • Services (264 euros) for every 30oookm with the new or (428 euros) for every 10ooo. • Repair one time in every year (100 euros) for a new one, and (340 euros) for every 15ooo km for an old one. • Cost of emergency transport is 0 for new and 200 euros for every 40ooo for old one. • Old car uses 1 dec3 of gasoline per every 100km more than a new one. Gasoline will costs 1,1 euro per 1 dec3 • After 6 years, you sell car for average value (18% less than your startup investment). • Cost od debt = kd = 18%; cost of equity = ke = 4.6% * (1-Tb) (remember about BELKA TAX! Tb = Belka Tax Rate)

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