J and R are newlyweds. They have just purchased their home and J and R are going to be parents of twins. They need to consider the insurance needs. With a family, a home and coming twins, they need to develop a plan to help them ready for an unexpected event. Character in this case: J and R. Adequate information: Checking account: $4,300 Savings account: $22,200 Emergency fund savings account: $20,500 IRA balance: $26,000 Car: $10,000 (J) and $18,000 (R) Student loan balance: $0 Credit card balance: $2,000 Car loans: $6,000 J: $50,000 gross income ($37,500 net income after taxes) R: $75,000 gross income ($64,000 net income after taxes) Mortgage: $1,252 Property taxes and insurance: $500 Utilities: $195 Food: $400 Gas/maintenance: $275 Credit card payment: $250 Car loan payment: $289 Entertainment: $300 To prepare: A record of belongings and the total cost of belongings.

Question

Want to see the full answer?

Answer 1

Question

Chapter 10, Problem 6CC

Summary Introduction

Case summary:

J and R are newlyweds. They have just purchased their home and J and R are going to be parents of twins. They need to consider the insurance needs. With a family, a home and coming twins, they need to develop a plan to help them ready for an unexpected event.

Character in this case: J and R.

Adequate information:
Checking account: $4,300
Savings account: $22,200
Emergency fund savings account: $20,500
IRA balance: $26,000
Car: $10,000 (J) and $18,000 (R)
Student loan balance: $0
Credit card balance: $2,000
Car loans: $6,000
J: $50,000 gross income ($37,500 net income after taxes)
R: $75,000 gross income ($64,000 net income after taxes)
Mortgage: $1,252
Property taxes and insurance: $500
Utilities: $195
Food: $400
Gas/maintenance: $275
Credit card payment: $250
Car loan payment: $289
Entertainment: $300

To prepare:

A record of belongings and the total cost of belongings.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

No chatgptPlease don't answer i will give unhelpful all expert giving wrong answer he is giving answer with using incorrect values.

Please don't answer i will give unhelpful all expert giving wrong answer he is giving answer with incorrect data.

4. On August 20, Mr. and Mrs. Cleaver decided to buy a property from Mr. and Mrs. Ward for $105,000. On August 30, Mr. and Mrs. Cleaver obtained a loan commitment from OKAY National Bank for an $84,000 conventional loan at 5 percent for 30 years. The lender informs Mr. and Mrs. Cleaver that a $2,100 loan origination fee will be required to obtain the loan. The loan closing is to take place September 22. In addition, escrow accounts will be required for all prorated property taxes and hazard insurance; however, no mortgage insurance is necessary. The buyer will also pay a full year's premium for hazard insurance to Rock of Gibraltar Insurance Company. A breakdown of expected settlement costs, provided by OKAY National Bank when Mr. and Mrs. Cleaver inspect the uniform settlement statement as required under RESPA on September 21, is as follows: I. Transactions between buyer-borrower and third parties: a. Recording fees--mortgage b. Real estate transfer tax c. Recording fees/document…