In addition to these monthly expenses, other future outlays must be accounted for. Before they had a child, Sondra worked as a real estate agent, but her knowledge and skills are now somewhat outdated. Therefore, they include $30,000 for Sondra to go back to school. Additionally, Shen and Sondra want to create a college fund of $35,000 to fund their child’s college education. They estimate that final expenses (funeral costs and estate taxes) will amount to $12,000. Finally, they have taken out a loan for home improvements of $130,000 and an automobile loan of $5,000. They own their home but still have an outstanding mortgage of $300,000. Using this information, complete the next portion of Step 1 to determine the total financial resources needed. 2. Special needs a. Spouse’s education fund b. Child’s college fund c. Other needs $0 3. Final expenses (funeral costs and estate taxes) 4. Debt liquidation a. House mortgage b. Other loans c. Total debt (4a + 4b) 5. Other financial needs $0 Total financial resources needed (add right-hand column plus the Total Living Expenses you calculated):
In addition to these monthly expenses, other future outlays must be accounted for. Before they had a child, Sondra worked as a real estate agent, but her knowledge and skills are now somewhat outdated. Therefore, they include $30,000 for Sondra to go back to school. Additionally, Shen and Sondra want to create a college fund of $35,000 to fund their child’s college education. They estimate that final expenses (funeral costs and estate taxes) will amount to $12,000. Finally, they have taken out a loan for home improvements of $130,000 and an automobile loan of $5,000. They own their home but still have an outstanding mortgage of $300,000. Using this information, complete the next portion of Step 1 to determine the total financial resources needed. 2. Special needs a. Spouse’s education fund b. Child’s college fund c. Other needs $0 3. Final expenses (funeral costs and estate taxes) 4. Debt liquidation a. House mortgage b. Other loans c. Total debt (4a + 4b) 5. Other financial needs $0 Total financial resources needed (add right-hand column plus the Total Living Expenses you calculated):
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
In addition to these monthly expenses, other future outlays must be accounted for. Before they had a child, Sondra worked as a real estate agent, but her knowledge and skills are now somewhat outdated. Therefore, they include $30,000 for Sondra to go back to school. Additionally, Shen and Sondra want to create a college fund of $35,000 to fund their child’s college education. They estimate that final expenses (funeral costs and estate taxes) will amount to $12,000. Finally, they have taken out a loan for home improvements of $130,000 and an automobile loan of $5,000. They own their home but still have an outstanding mortgage of $300,000.
Using this information, complete the next portion of Step 1 to determine the total financial resources needed.
| 2. Special needs | ||
| a. | Spouse’s education fund |
|
| b. | Child’s college fund |
|
| c. | Other needs | $0 |
| 3. | Final expenses (funeral costs and estate taxes) |
|
| 4. | Debt liquidation | |
| a. | House mortgage |
|
| b. | Other loans |
|
| c. | Total debt (4a + 4b) |
|
| 5. | Other financial needs | $0 |
| Total financial resources needed (add right-hand column plus the Total Living Expenses you calculated): |
|
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education