Answered: Personal Profile: Dave and Anna Dave…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Transcribed Image Text:Budget Profile B Personal Profile: Dave and Anna Dave and Anna are married with 2 young children (ages 5 and 7 years old). Their combined take home pay is $900 per week. They own a town house with a bi-weekly mortgage of $675. Property taxes are $1800 annually. Their car expenses are $160 monthly and their car insurance costs $128 for 2 cars every month. House insurance is currently $35 monthly. Dave and Anna save into an RESP for the children ($200 every month). 1.Use one highlighter to identify all sources of income. Total the income for each month. 2.Use a different highlighter to identify all sources of expense. Total the expenses for each month. 3. Subtract the Total Expenses from the Total Income for each month. A Surplus is when your Income minus Expenses = a positive number. A Shortage is when your Income minus Expenses = a negative number. Does they have a surplus or a shortage?

Transcribed Image Text:Budget Profile C Personal Profile: Jacob Jacob is 68 years old and retired. From the government he receives a Canada Pension Plan payment of $848/month and he also receives an Old Age Security payment of $484/month. Jacob owns his home now but he must pay property tax of $3000 annually. Jacob's wife died last year and Jacob is still paying off the loan needed to pay legal fees and burial fees. For these Jacob must pay $100/month for 6 more payments. Jacob enjoys golfing (annual club member of $500) and bowling (annual league membership of $100). Jacob usually eats out four nights a week. 1.Use one highlighter to identify all sources of income. Total the income for each month. 2.Use a different highlighter to identify all sources of expense. Total the expenses for each month. 3. Subtract the Total Expenses from the Total Income for each month. A Surplus is when your Income minus Expenses = a positive number. A Shortage is when your Income minus Expenses = a negative number. Does he have a surplus or a shortage?

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