Young Sarah had been passionate about acting her entire life. After countless accolades and encouragement from her parents, she decided to try her luck to become an actress in Bollywood. She decided to give herself two years to pursue her dream. But when she got to know how expensive living in Mumbai can be, she got worried about how she will be able to support herself. As prize money from a reality TV show, she was offered a place to live in Mumbai for the first six months. However, she must spend 4000 each month on food in these six months. After that, she needs to stay as a paid guest. For this, she needs to pay Rs 3000 in advance, which she will get back while vacating at the end of two years. The monthly rent is Rs. 8000 including food and electricity charges, which should be paid at the beginning of each month. At 1.5% per month, determine the following using hand calculations or the excel sheet –
1. How much money does she need to have borrowed from her parents today to support her for two years?
2. “So much money,” Sarah mumbled in huge disbelief. How on earth will my family support my two-year stay in Mumbai? I must do a job in Mumbai, Sarah thought. However, if I do a job, how will I focus on my dreams? I must do a job bare enough to survive. So, how much should I earn monthly? Calculate the minimum amount of monthly salary that Sarah must aim to survive by herself for two years.
3. But even that much is very hard for me to earn, as I don’t have connections to get me a decent salary initially. What if I ask my parents to support my expenses for one year, and I will work hard to find a much higher paying job once I get there. How much money should Sarah ask her parents right now to support her for one year? Relaxed to see the amount, Sarah said to herself, when I become famous, I will surely return much more than this to my parents. Time to believe in me.