J and R is a couple. They were the family of two until they were blessed with triplets and now the family of two has become the family of five. R started to worry about the increased family expenses due to triplets. He also started to worry about that if something happens to even one of them how will the surviving parent will able to take care of three children. Character in this case: J and R. Adequate information: Checking account: $2,500 Savings account: $16,000 Emergency fund savings account: $19,100 IRA balance: $25,000 Car: $11,500 (Jamie Lee) and $19,000 (Ross) Credit card balance: $3,500 Car loans: $7,000 Jamie Lee: $45,000 gross income ($31,500 net income after taxes) Ross: $73,000 gross income ($60,800 net income after taxes) Mortgage: $1,225 Property taxes: $400 Homeowner’s insurance: $200 Utilities: $160 Food: $500 Gas/maintenance: $275 Credit card payment: $275 Car loan payment: $289 Entertainment: $125 To determine: The type of insurance they should choose and advantages and disadvantages of the insurance chosen.

Question

Want to see the full answer?

Answer 1

Question

Chapter 12, Problem 4CC

Summary Introduction

Case summary:

J and R is a couple. They were the family of two until they were blessed with triplets and now the family of two has become the family of five. R started to worry about the increased family expenses due to triplets. He also started to worry about that if something happens to even one of them how will the surviving parent will able to take care of three children.

Character in this case: J and R.

Adequate information: Checking account: $2,500
Savings account: $16,000
Emergency fund savings account: $19,100
IRA balance: $25,000
Car: $11,500 (Jamie Lee) and $19,000 (Ross)
Credit card balance: $3,500
Car loans: $7,000
Jamie Lee: $45,000 gross income ($31,500 net income after taxes)
Ross: $73,000 gross income ($60,800 net income after taxes)
Mortgage: $1,225
Property taxes: $400
Homeowner’s insurance: $200
Utilities: $160
Food: $500
Gas/maintenance: $275
Credit card payment: $275
Car loan payment: $289
Entertainment: $125

To determine:

The type of insurance they should choose and advantages and disadvantages of the insurance chosen.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Select a real-world case situation. Use this case which you either know about already or have identifiedthrough research and address the following questions in essay format:.i. Outline and discuss what “triggered” the regulatory body to intervene? ii. How effective do you think the response was to such a crisis? iii. Outline and discuss two ways that could be used to strengthen the current regulatory

le Shema actencial de theophile caution

You plan to purchase a $200,000 house using either a 30-year mortgage obtained from your local savings bank with a rate of 7.25 percent, or a 15-year mortgage with a rate of 6.50 percent. You will make a down payment of 20 percent of the purchase price. Calculate the amount of interest and, separately, principal paid on each mortgage. What is the difference in interest paid? Calculate your monthly payments on the two mortgages. What is the difference in the monthly payment on the two mortgages?