Harper, age 45, earns $300,000 annually from Atlas, which sponsors a SIMPLE, and the required non-elective contributions to all eligible employees. What is the maximum total contribution to Harper's account in 2019, including both employee and employer contributions?

3) Bob is interested in a Solo 401(k) a. Does Bob have the ability to create a Solo 401(k)? Explain why or why not. b. What is the deadline to open a Solo 401(k), and when must it be funded? c. What is the maximum that Bob can add to a Solo 401(k) once it is created? what you want to de 11 NAAR EE91 Eb Abb Abba Abc AaB ABC ABC A No Spec. Heading Heading 2 Te Subtitle Subem. D AE AD CD ACC. Emphas W e Strong utente. Su Parah Bob and Mary Jones Retirement Case family formation Bob on 15/1973) is primary care with an annual income of $200.000 May 1008 09/16/137 cars an annual income of $15.000. They have three children, lamesage 141. Adamage 121, and Coling. Before having cidrer, Mary employed by boeng for 14 year. Retirement Plans SOP R A. Mary is 100 and Mary's is at Fidelity ested in the Boeing plan Bo' stirement plan argard Mary was makine 543,000 year when she quit het Boeing Ahers and other deduction le. the 4010 her contribution to the family income was $20.000. Even with that, the lones' but was runnin g of $1,500 a month in the hole Mary would like to get totally out of the Boeing retirement plan, as she does not anticipate bring to work there Mary is thinking of takingamp Sum distribution of her o w n and rolling over all of the scept for the Boeing Mackintos self-directed own work contracted Physician and receives several 1099 each year Bob is rently contributing $13,000 to SOPIRA He open to change and send your pati Mary no longer saves for r ent, because she beves she does not have s ent cash flow and that she felle forretn ingBob and Mary has a joint broke account In order of prory, the specific and lectives of Bob and Mary are as follows: 1. Save for retirement-Retire when to turns with funding for a proced u re VEYE 2. Provide for family of something happens to the target m o sta Reduce the debt Provide education funding for all three dret Travel to Europe each year in retirement for as long as they can hades reality benefit partial disability benefit and retum Pagah Rak Tolerance Bab - Accessive Mary-Moderate Estate Tax and income Tax Information bob and Mary Jones Monthly and early Budget Bob and Mary have a bawl, which was written after their first child was born. They have done ne other este planning they would their acts to be split equally between the chideen after the death of the surviving spouse. Both Bob and Mary currently ves at Charlotte, NC Education Planning Monthly Bob and Mary want their children to go to their alma mater Clemson University. In state tuition is Currently per year. They want to fund Box of the cost of a year education, ensuring that the cost fully funded when the child start school James has 5.20.000 in a CD. He is the only child with any money currently saved for college set up as a UTMA account. Aldren are currently enrolled in Bob and Mary Jones Statement of Financial Position as of December 31, 2019 Addition information hob and Mary bought the house six years ago. The original loan was $200,000 and their interes 75. Occasionally, the wil peyam um amount towards the principal Vehicle 1 Loan information: $19.750,Spear note625M, taken out two years vehicle 2 Loan Information $22,000 year note 7.25 taken outlast year The average credit card interest rate : 17.5% Risk Tolerance Bob - Aggressive Mary - Moderate Estate Tax and Income Tax Information Bob and Mary have a basic will, which was written after their first child was born. They have done no other estate planning. They would like their assets to be split equally between the children after the death of the surviving spouse. Both Bob and Mary Currently lives at Charlotte, NC Education Planning Bob and Mary want their children to go to their alma mater, Clemson University. In-state tuition is currently per year. They want to fund 80% of the cost of a 4-year education, ensuring that the cost is fully funded when the child starts school. James has $20,000 in a CD. He is the only child with any money currently saved for college. It is set up as a UTMA account. All children are currently enrolled in public school S45,000 Bob and Mary Jones Statement of Financial Position as of December 31, 2019 Assets abilities Cash/Cash Equivalents Credit Card Debt Checking UTWROSJ 5 800 Savings UTWROS) $7,000 Total Current Liabilities Money Markets TWROS) 51,800 Total S 353 59.600 Long-term Liabilities Mortgage Residence) Invested Assets Vehicle Loan 1 Brokerage Vehicle Loan 2 CD 5 20,000 Bob's Student Loan Total long-term abilities Total abilities S45,000 5 $175,446 12.877 STR857 250.000 15457.150 5502,180 Retirement Plan Assets 401KL Use Assets Residence UTWROS) $250,000 NET WORTH Veride UTWROS) 518,300 TOTAL UIABILITIES AND Venide 12 UTWROS $21,800 NET WORTH Total $480,100 TOTAL ASSETS E S H - Husband W-Wite JTWROS - Joint Tenants with right of Survivorship Survivorship Bob and Mary Jones Monthly and Yearly Budget Labilities Mortgage payment or rent Real estate taxes Automobile loan $1 Automobile loan 12 Charge accounts Total Liabilities Monthly $1,400 $185 $384 $446 S408 52,823 Yearly $16,800 52 220 $4,608 55 352 5 4,900 539,880 5942 $11,304 Transportation Insurance Life insurance Disability income Auto insurance Homeowners insurance Total insurance $284 $500 $117 $175 $2018 5 3,408 $6,000 $1,404 $2,100 $24.226 I Charitable Contributions Household Expenses Medical Children Clothing/Grooming Recreation Gifts Personal/Business Total $900 $10,800 55,621 567,456 5683 58.196 52,558 530,700 $575 $6.900 $1.558 518,700 5783 $9.400 $500 $6.000 513.178 5158.152 Additional Information: Bob and Mary bought their house six years ago. The original loan was 5200,000 and their interest rate is 7.5%. Occasionally, the will pay a lump sum amount towards their principal Vehicle 1 Loan information: $19,750, 5-year note at 6.25%, taken out two years ago Vehide 2 Loan information: 522,400, 5year note at 7.25%, taken out last year. The average credit card interest rate is 17.5%. Font Bob and Mary Jones Retirement Case Family Information Bob (DO8 02/15/1973) is a primary care physician with an annual income of $200,000. Mary (DOB 09/16/2979) cars an annual income of $15.000. They have three children, James (age 14), Adamage 12 and Colin ne 9 Before having children, Mary was employed by Boeing for 14 years. Mary was making $42.000 a year when she quilt her job at Boeing. After taxes and other deductions (eg, the 401( her contribution to the family income was $20,000. Even with that, the Jones' budget was uning an average of $1.500 a month in the hole. Mary would like to get totally out of the Boeing retirement plan, as she does not anticipate returning to work there Mary is thinking of taking a lump um distribution of her 401k account and rolling over all of the assets except for the Boeing stock into a self-directed IRA. Bob owns works at a contracted Physician and receives several 1099 each year Goals and Obiectives In order of priority, the specific goals and objectives of Bob and Mary are as follows: 1. Save for retirement. Retire when Bob turns 60, with funding for a projected 30-year life expectancy 2. Provide for the family if something happens to Bob. Their target amount is 90% of his take home income this year. 3. Reduce their debt 4. Provide education funding for all three children Trwel to Europe each year in retirement for as long as they can. Insurance Information une nounce insured Owner Beneficiary Amount Cash Value Sob Bob Mary 20-year term - 5 yrs. old 5850,000 None ob Bob Mary V ariable life-4 yrs. old $250000 511,080 Disability Insurance Benefit Premium Premium Notes Annual Premium S400 53,145 par Bob LTD Bob 60% of income to age 65, maximum 55,000/mo, benefit includes residual disability benefit partial disability benefit, and return to work benefit: 90-day wait. Plan uses split definition of disability ob's bought this policy while he was working a Resident Physician Investment Portfolio Information Retirement Plans BOP has a SEPIRA Mary is 100% vested in the Boeing 4011 plan Bob's retirement plan is at Vanguard and Mary's is at Fidelity Bob is currently contributing $12,000 to his SEPIRA He is open to change and seeks your expertise Mary no longer saves for retirement, because she believes she does not have sufficient cash flow and that she is not eligible for retirement savings Bob and Mary has a joint Brokerage account Owner Allocation Fair Market Beneficiary Bob --SEP VEVFX 594,800 Mary VNITX 547,400 Mary Bob - SEP Bob -SEP VFSVX $94,800 Mary Bob-IRA $39,000 James and Adam VSGAX Boeing Stock Bob Mary - 40131 Mary -401) $32,400 $20,250 FEXPX Bob Mary - 401 FSTGX $20,250 $8,100 Bob Mary - 401701 F MSFX *Cost basis in the Boeing stock is $15.000 Investment Statistics Personal Investments Name # of Shares Price per share Current Value Cost Basis Bank of America 500 S4,875 Cilt Bank 300 $4,912 Amazon $41,000 AEPGX ES 59.000 Bob and Mary Jones Retirement Case Family Information Bob (DOB 02/15/1973) is a primary care physician with an annual income of $200,000. Mary (DOB 09/16/1979) earns an annual income of $15,000. They have three children, James (age 14), Adam (age 12), and Colin (age 9). Before having children, Mary was employed by Boeing for 14 years. Mary was making $42,000 a year when she quit her job at Boeing. After taxes and other deductions (e.g. the 401(K), her contribution to the family income was $20,000. Even with that, the Jones' budget was running an average of $1,500 a month in the hole. Mary would like to get totally out of the Boeing retirement plan, as she does not anticipate returning to work there. Mary is thinking of taking a lump- sum distribution of her 401k account and rolling over all of the assets except for the Boeing stock into a self-directed IRA. Bob owns works at a contracted Physician and receives several 1099 each year. Goals and Objectives In order of priority, the specific goals and objectives of Bob and Mary are as follows: 1. Save for retirement - Retire when Bob turns 60, with funding for a projected 30-year life expectancy. 2. Provide for the family if something happens to Bob. Their target amount is 90% of his take home income this year. 3. Reduce their debt 4. Provide education funding for all three children. 5. Travel to Europe each year in retirement for as long as they can. Insurance Information Life Insurance Insured Owner Beneficiary Type Amount Annual Cash Value Premium Bob Bob Mary 20-year term -5 yrs. old $350,000 None $400 Bob Bob Mary Variable life - 4 yrs. old $250,000 $11,080 $3,145 Disability Insurance Insured Type Benefit Premium Premium Notes Pa or Bob LTD Bob $6,000 60% of income to age 65; maximum $5,000/mo. benefit Includes residual disability benefit, partial disability benefit, and return- to work benefit: 90-day wait. Plan uses split definition of disability Bob's bought this policy while he was working a Resident Physician. Risk Tolerance Bob - Aggressive Mary-Moderate Estate Tax and Income Tax Information Bob and Mary have a basic will, which was written after their first child was born. They have done no other estate planning. They would like their assets to be split equally between their children after the death of the surviving spouse. Both Bob and Mary Currently lives at Charlotte, NC. Education Planning Bob and Mary want their children to go to their alma mater, Clemson University. In-state tuition is Currently per year. They want to fund 80% of the cost of a 4-year education, ensuring that the cost is fully funded when the child starts school. James has $20,000 in a CD. He is the only child with any money currently saved for college. It is set up as a UTMA account. All children are currently enrolled in public school Bob and Mary Jones Statement of Financial Position as of December 31, 2019 Liabilities Credit Card Debt $45,000 Assets Cash/Cash Equivalents Checking (JTWROS) $800 Savings (UTWROS) $7,000 Money Markets $1,800 UTWROSI $9,600 Total Current Liabilities $45,000 Total Invested Assets Long-term Liabilities Mortgage (Residence) Vehicle Loan 1 Vehicle Loan 2 Bob's Student Loan Total Long-term Liabilities Total Liabilities $20,000 $175,446 $12,877 $18,857 $250.000 $457,180 $502,180 Retirement Plan Assets SEP 401K S Use Assets Residence UTWROS) Vehicle (ITWROS) Vehicle 2 UTWROS) Total TOTAL ASSETS $260,000 NET WORTH $18,300 TOTAL LIABILITIES AND $21,800 NET WORTH $480,100 HHusband W Wife ITWROS Joint Tenants with Right of Survivorship Bob and Mary Jones Monthly and Yearly Budget Mortgage payment or rent Real estate taxes Automobile loan 81 Automobile loan #2 Charge accounts Total Liabilities Monthly $1,400 $185 $384 $446 $408 $2.823 Yearly $16,800 $2,220 $4,608 $5,352 $4.900 $33,880 $942 $11,304 Transportation Insurance: Life insurance Disability income Auto insurance Homeowners insurance Total Insurance $284 $500 $117 $175 $2.018 $3,408 $6,000 $1.404 $2.100 $24,216 | Charitable Contributions Household Expenses Medical Children Clothing/Grooming Recreation Gifts Personal/Business Total $900 $5,621 $683 $2.558 $575 $1,558 $783 $500 $13.128 $10,800 $67,456 $8.196 $30,700 $6,900 $18,700 $9,400 $6,000 $158.152 Additional Information: Bob and Mary bought their house six years ago. The original loan was $200,000 and their interest rate is 7.5%. Occasionally, the will pay a lump sum amount towards their principal. Vehicle 1: Loan information: $19,750,5-year note at 6.25%, taken out two years ago Vehicle 2: Loan information: $22,400, 5-year note at 7.25%, taken out last year. The average credit card interest rate is 17.5% 3) Bob is interested in a Solo 401(k) a. Does Bob have the ability to create a Solo 401(k)? Explain why or why not. b. What is the deadline to open a Solo 401(k), and when must it be funded? c. What is the maximum that Bob can add to a Solo 401(k) once it is created? what you want to de 11 NAAR EE91 Eb Abb Abba Abc AaB ABC ABC A No Spec. Heading Heading 2 Te Subtitle Subem. D AE AD CD ACC. Emphas W e Strong utente. Su Parah Bob and Mary Jones Retirement Case family formation Bob on 15/1973) is primary care with an annual income of $200.000 May 1008 09/16/137 cars an annual income of $15.000. They have three children, lamesage 141. Adamage 121, and Coling. Before having cidrer, Mary employed by boeng for 14 year. Retirement Plans SOP R A. Mary is 100 and Mary's is at Fidelity ested in the Boeing plan Bo' stirement plan argard Mary was makine 543,000 year when she quit het Boeing Ahers and other deduction le. the 4010 her contribution to the family income was $20.000. Even with that, the lones' but was runnin g of $1,500 a month in the hole Mary would like to get totally out of the Boeing retirement plan, as she does not anticipate bring to work there Mary is thinking of takingamp Sum distribution of her o w n and rolling over all of the scept for the Boeing Mackintos self-directed own work contracted Physician and receives several 1099 each year Bob is rently contributing $13,000 to SOPIRA He open to change and send your pati Mary no longer saves for r ent, because she beves she does not have s ent cash flow and that she felle forretn ingBob and Mary has a joint broke account In order of prory, the specific and lectives of Bob and Mary are as follows: 1. Save for retirement-Retire when to turns with funding for a proced u re VEYE 2. Provide for family of something happens to the target m o sta Reduce the debt Provide education funding for all three dret Travel to Europe each year in retirement for as long as they can hades reality benefit partial disability benefit and retum Pagah Rak Tolerance Bab - Accessive Mary-Moderate Estate Tax and income Tax Information bob and Mary Jones Monthly and early Budget Bob and Mary have a bawl, which was written after their first child was born. They have done ne other este planning they would their acts to be split equally between the chideen after the death of the surviving spouse. Both Bob and Mary currently ves at Charlotte, NC Education Planning Monthly Bob and Mary want their children to go to their alma mater Clemson University. In state tuition is Currently per year. They want to fund Box of the cost of a year education, ensuring that the cost fully funded when the child start school James has 5.20.000 in a CD. He is the only child with any money currently saved for college set up as a UTMA account. Aldren are currently enrolled in Bob and Mary Jones Statement of Financial Position as of December 31, 2019 Addition information hob and Mary bought the house six years ago. The original loan was $200,000 and their interes 75. Occasionally, the wil peyam um amount towards the principal Vehicle 1 Loan information: $19.750,Spear note625M, taken out two years vehicle 2 Loan Information $22,000 year note 7.25 taken outlast year The average credit card interest rate : 17.5% Risk Tolerance Bob - Aggressive Mary - Moderate Estate Tax and Income Tax Information Bob and Mary have a basic will, which was written after their first child was born. They have done no other estate planning. They would like their assets to be split equally between the children after the death of the surviving spouse. Both Bob and Mary Currently lives at Charlotte, NC Education Planning Bob and Mary want their children to go to their alma mater, Clemson University. In-state tuition is currently per year. They want to fund 80% of the cost of a 4-year education, ensuring that the cost is fully funded when the child starts school. James has $20,000 in a CD. He is the only child with any money currently saved for college. It is set up as a UTMA account. All children are currently enrolled in public school S45,000 Bob and Mary Jones Statement of Financial Position as of December 31, 2019 Assets abilities Cash/Cash Equivalents Credit Card Debt Checking UTWROSJ 5 800 Savings UTWROS) $7,000 Total Current Liabilities Money Markets TWROS) 51,800 Total S 353 59.600 Long-term Liabilities Mortgage Residence) Invested Assets Vehicle Loan 1 Brokerage Vehicle Loan 2 CD 5 20,000 Bob's Student Loan Total long-term abilities Total abilities S45,000 5 $175,446 12.877 STR857 250.000 15457.150 5502,180 Retirement Plan Assets 401KL Use Assets Residence UTWROS) $250,000 NET WORTH Veride UTWROS) 518,300 TOTAL UIABILITIES AND Venide 12 UTWROS $21,800 NET WORTH Total $480,100 TOTAL ASSETS E S H - Husband W-Wite JTWROS - Joint Tenants with right of Survivorship Survivorship Bob and Mary Jones Monthly and Yearly Budget Labilities Mortgage payment or rent Real estate taxes Automobile loan $1 Automobile loan 12 Charge accounts Total Liabilities Monthly $1,400 $185 $384 $446 S408 52,823 Yearly $16,800 52 220 $4,608 55 352 5 4,900 539,880 5942 $11,304 Transportation Insurance Life insurance Disability income Auto insurance Homeowners insurance Total insurance $284 $500 $117 $175 $2018 5 3,408 $6,000 $1,404 $2,100 $24.226 I Charitable Contributions Household Expenses Medical Children Clothing/Grooming Recreation Gifts Personal/Business Total $900 $10,800 55,621 567,456 5683 58.196 52,558 530,700 $575 $6.900 $1.558 518,700 5783 $9.400 $500 $6.000 513.178 5158.152 Additional Information: Bob and Mary bought their house six years ago. The original loan was 5200,000 and their interest rate is 7.5%. Occasionally, the will pay a lump sum amount towards their principal Vehicle 1 Loan information: $19,750, 5-year note at 6.25%, taken out two years ago Vehide 2 Loan information: 522,400, 5year note at 7.25%, taken out last year. The average credit card interest rate is 17.5%. Font Bob and Mary Jones Retirement Case Family Information Bob (DO8 02/15/1973) is a primary care physician with an annual income of $200,000. Mary (DOB 09/16/2979) cars an annual income of $15.000. They have three children, James (age 14), Adamage 12 and Colin ne 9 Before having children, Mary was employed by Boeing for 14 years. Mary was making $42.000 a year when she quilt her job at Boeing. After taxes and other deductions (eg, the 401( her contribution to the family income was $20,000. Even with that, the Jones' budget was uning an average of $1.500 a month in the hole. Mary would like to get totally out of the Boeing retirement plan, as she does not anticipate returning to work there Mary is thinking of taking a lump um distribution of her 401k account and rolling over all of the assets except for the Boeing stock into a self-directed IRA. Bob owns works at a contracted Physician and receives several 1099 each year Goals and Obiectives In order of priority, the specific goals and objectives of Bob and Mary are as follows: 1. Save for retirement. Retire when Bob turns 60, with funding for a projected 30-year life expectancy 2. Provide for the family if something happens to Bob. Their target amount is 90% of his take home income this year. 3. Reduce their debt 4. Provide education funding for all three children Trwel to Europe each year in retirement for as long as they can. Insurance Information une nounce insured Owner Beneficiary Amount Cash Value Sob Bob Mary 20-year term - 5 yrs. old 5850,000 None ob Bob Mary V ariable life-4 yrs. old $250000 511,080 Disability Insurance Benefit Premium Premium Notes Annual Premium S400 53,145 par Bob LTD Bob 60% of income to age 65, maximum 55,000/mo, benefit includes residual disability benefit partial disability benefit, and return to work benefit: 90-day wait. Plan uses split definition of disability ob's bought this policy while he was working a Resident Physician Investment Portfolio Information Retirement Plans BOP has a SEPIRA Mary is 100% vested in the Boeing 4011 plan Bob's retirement plan is at Vanguard and Mary's is at Fidelity Bob is currently contributing $12,000 to his SEPIRA He is open to change and seeks your expertise Mary no longer saves for retirement, because she believes she does not have sufficient cash flow and that she is not eligible for retirement savings Bob and Mary has a joint Brokerage account Owner Allocation Fair Market Beneficiary Bob --SEP VEVFX 594,800 Mary VNITX 547,400 Mary Bob - SEP Bob -SEP VFSVX $94,800 Mary Bob-IRA $39,000 James and Adam VSGAX Boeing Stock Bob Mary - 40131 Mary -401) $32,400 $20,250 FEXPX Bob Mary - 401 FSTGX $20,250 $8,100 Bob Mary - 401701 F MSFX *Cost basis in the Boeing stock is $15.000 Investment Statistics Personal Investments Name # of Shares Price per share Current Value Cost Basis Bank of America 500 S4,875 Cilt Bank 300 $4,912 Amazon $41,000 AEPGX ES 59.000 Bob and Mary Jones Retirement Case Family Information Bob (DOB 02/15/1973) is a primary care physician with an annual income of $200,000. Mary (DOB 09/16/1979) earns an annual income of $15,000. They have three children, James (age 14), Adam (age 12), and Colin (age 9). Before having children, Mary was employed by Boeing for 14 years. Mary was making $42,000 a year when she quit her job at Boeing. After taxes and other deductions (e.g. the 401(K), her contribution to the family income was $20,000. Even with that, the Jones' budget was running an average of $1,500 a month in the hole. Mary would like to get totally out of the Boeing retirement plan, as she does not anticipate returning to work there. Mary is thinking of taking a lump- sum distribution of her 401k account and rolling over all of the assets except for the Boeing stock into a self-directed IRA. Bob owns works at a contracted Physician and receives several 1099 each year. Goals and Objectives In order of priority, the specific goals and objectives of Bob and Mary are as follows: 1. Save for retirement - Retire when Bob turns 60, with funding for a projected 30-year life expectancy. 2. Provide for the family if something happens to Bob. Their target amount is 90% of his take home income this year. 3. Reduce their debt 4. Provide education funding for all three children. 5. Travel to Europe each year in retirement for as long as they can. Insurance Information Life Insurance Insured Owner Beneficiary Type Amount Annual Cash Value Premium Bob Bob Mary 20-year term -5 yrs. old $350,000 None $400 Bob Bob Mary Variable life - 4 yrs. old $250,000 $11,080 $3,145 Disability Insurance Insured Type Benefit Premium Premium Notes Pa or Bob LTD Bob $6,000 60% of income to age 65; maximum $5,000/mo. benefit Includes residual disability benefit, partial disability benefit, and return- to work benefit: 90-day wait. Plan uses split definition of disability Bob's bought this policy while he was working a Resident Physician. Risk Tolerance Bob - Aggressive Mary-Moderate Estate Tax and Income Tax Information Bob and Mary have a basic will, which was written after their first child was born. They have done no other estate planning. They would like their assets to be split equally between their children after the death of the surviving spouse. Both Bob and Mary Currently lives at Charlotte, NC. Education Planning Bob and Mary want their children to go to their alma mater, Clemson University. In-state tuition is Currently per year. They want to fund 80% of the cost of a 4-year education, ensuring that the cost is fully funded when the child starts school. James has $20,000 in a CD. He is the only child with any money currently saved for college. It is set up as a UTMA account. All children are currently enrolled in public school Bob and Mary Jones Statement of Financial Position as of December 31, 2019 Liabilities Credit Card Debt $45,000 Assets Cash/Cash Equivalents Checking (JTWROS) $800 Savings (UTWROS) $7,000 Money Markets $1,800 UTWROSI $9,600 Total Current Liabilities $45,000 Total Invested Assets Long-term Liabilities Mortgage (Residence) Vehicle Loan 1 Vehicle Loan 2 Bob's Student Loan Total Long-term Liabilities Total Liabilities $20,000 $175,446 $12,877 $18,857 $250.000 $457,180 $502,180 Retirement Plan Assets SEP 401K S Use Assets Residence UTWROS) Vehicle (ITWROS) Vehicle 2 UTWROS) Total TOTAL ASSETS $260,000 NET WORTH $18,300 TOTAL LIABILITIES AND $21,800 NET WORTH $480,100 HHusband W Wife ITWROS Joint Tenants with Right of Survivorship Bob and Mary Jones Monthly and Yearly Budget Mortgage payment or rent Real estate taxes Automobile loan 81 Automobile loan #2 Charge accounts Total Liabilities Monthly $1,400 $185 $384 $446 $408 $2.823 Yearly $16,800 $2,220 $4,608 $5,352 $4.900 $33,880 $942 $11,304 Transportation Insurance: Life insurance Disability income Auto insurance Homeowners insurance Total Insurance $284 $500 $117 $175 $2.018 $3,408 $6,000 $1.404 $2.100 $24,216 | Charitable Contributions Household Expenses Medical Children Clothing/Grooming Recreation Gifts Personal/Business Total $900 $5,621 $683 $2.558 $575 $1,558 $783 $500 $13.128 $10,800 $67,456 $8.196 $30,700 $6,900 $18,700 $9,400 $6,000 $158.152 Additional Information: Bob and Mary bought their house six years ago. The original loan was $200,000 and their interest rate is 7.5%. Occasionally, the will pay a lump sum amount towards their principal. Vehicle 1: Loan information: $19,750,5-year note at 6.25%, taken out two years ago Vehicle 2: Loan information: $22,400, 5-year note at 7.25%, taken out last year. The average credit card interest rate is 17.5%