Jamie Lee and Ross decided to purchase life insurance for Ross because his is the higher income at this time and because it would be more devastating if his income was lost due to his death. They have allowed $$9,700$ for funeral costs.

Calculate their living expenses for $6$ months to include all monthly expenses, excluding credit card debt and entertainment. Note that Ross's mother lives close and will be providing childcare to their triplets once Jamie Lee goes back to work at the bakery for half days. His mom will have a hired nanny to assist, which will cost them $$1,450$ a month. Use the table below to determine the amount Jamie Lee and Ross should use when shopping for life insurance. Each answer must have a value for the assignment to be complete. Enter $"$O$"$ for any unused categories.

Current Financial Situation

Assets:

Checking account

Savings account

Emergency fund savings account IRA balance

Car $($Jamie Lee$)$

Car $($Ross$)$

Liabilities:

Student loan balance

Credit card balance

Car loans

Income:

$$4,200$ Gross income $($Jamie Lee$)$

$$17,700$ Net income after taxes $($Jamie Lee$)$

$$20,800$ Gross income $($Ross$)$

$$26,700$

$$13,200$

$$20,700$

Net income after taxes $($Ross$)$

Monthly Expenses:

Mortgage

Property taxes

$$0$ Homeowners insurance

$$5,200$ Utilities

$$8,700$ Food

Gas$/$maintenance

Credit card payment

Car loan payment

Entertainment

Use the "family need" method to complete

Yearly income $x5$

Total approximate expenses above and beyond your daily living costs for you and your dependents $($e$.$g$.$ tutition, care for disabled child or parent$)$

Emergency fund needed $(6$ months of living expenses$)$

Expected funeral expenses

Total estimate of family's financial needs $($sum of lines $1-$

Total liquid assets $($e$.$g$.$ savings account, CDs$,$ money market funds, other life insurance, pension plan death benefits, and Social Security benefits$)$

Life insurance needs $($total estimate of needs minus liquid assets$)$