3) Balance Sheets. You happen to have $7000 in a bank account, $55,000 in a 401(k) plan at work, a fully owned car with a current value of $10,000, and a house that you purchased for $245,000 that has a current market value of $388,000. The current balance of your home mortgage is $100,000, you have one credit card with a $3,000 balance, and a school loan with a balance of $62,000. What is your current net worth?

4) Calculating Savings Rate. You earn $62,000 per year of annual disposable income and would like to have a 15% savings rate per year. What is the amount that you must manage to save?