Harry and Belinda’s fi nances have improved in recent months, even though they have incurred new debts for an automobile loan and a condominium. The improvement has occurred because they cut back their spending on discretionary items

(clothing, food, and entertainment) and because Harry also received a sizable increase in salary after changing employers. His new job as an assistant designer at Medical Facilities Inc. pays

$6000 more than his other job. The new job is also closer to home, reducing Harry’s commuting time. The Johnsons have decided to forgo some current spending to concentrate on getting a solid investment program under way while they have two incomes available. They are willing to accept a moderate amount of risk and expect to invest between $200 and $400 per month over the next fi ve years. Assuming that they have an adequate savings program, respond to the following questions: