Managing Money Personal Finance

Exercise 8.2A On page 56 of Exercise 8.2A, change the variable amounts of John and Marsha’s budget to save $225. In the “after” column write in the revised variable amounts. Use your judgment to decide which amounts they can reduce. The total in the “after” column must add up to $5,200 Answer questions a-e on page 56

Exercise 8.2B On page 58 of Exercise 8.2B, change the variable amount of John and Marsha’s new budget to save $100. In the “after” column write in the revised variable amounts. Use your judgment to decide which amounts they can reduce. The total in the “after” column must add up to $2,095. Answer questions a and c.

Exercise 8.3 On page 60 of Exercise 8.3, use the table to determine the monthly house payment for a loan of $140,000 at 6% interest. Write this amount on page 59 in the New Information paragraph. Add $210 to the monthly house payment for insurance and real estate taxes. Write this amount on page 59 in the 4th paragraph.

Exercise 8.3 On page 58 of Exercise 8.3, change the variable amounts of John and Marsha’s new homeowner’s budget to save $35. In the “Homeowners” column write in the revised variable amounts. Use your judgment to decide which amount they can reduce. The total of the “Homeowners” column must add up to $2,160.

Exercise 8.3 Calculate the “Rule of Thumb” amounts of 28% and 36% of gross monthly income to determine if John and Marsha can afford the mortgage payment. Answer all the questions on page 60 of Exercise 8.3