Robin Ader$$s Profile

Robin just turned thirty years of age. She lives in a house that she purchased three years ago for $$110,000,$ right before housing prices began to skyrocket in her area. She was fortunate to purchase the home with $$18,000$ in down payment money received from her father $($who is married$)$ and a loan for the remainder of the home price. She was able to obtain a $6\mathrm{.}5$ percent thirty$-$year mortgage.

Robin is a hard worker and a good saver. Over the past eight years$$since graduating from college$$she has accumulated a nice$-$sized nest egg. Table I$\mathrm{.}1$ summarizes her asset and liability situation.

Net Worth Statement $$ Jan $1$st $2024$

Assets

Savings Account Checking Account

$1$ Year CD

Home

Car

Brokerage Account

Value Liabilities

$$10,000*$Mortgage Balance

$$6,000**$Credit Card Balance

$$20,000***$Car Loan $$345,000$

$$15,000$ Total Assets $$500$ Total Liabilities

Net Worth

Value

$$50,000$ $$5,000$ $$12,000$

$$396,500$ $$67,00$ $$329,500$

$*$The savings account$$s current yield is $1\%$

$**$The mortgage was financed for $$92,000$ for $30$ years with a $6\mathrm{.}5\%$ interest rate $***$Credit Card interest rate is $29\%$

$****$The car was purchased $6$ years ago with an interest rate of $7\mathrm{.}5\%$

The current risk$-$free rate is $4\%.$

The current mortgage rate including to refinance is $4\mathrm{.}5\%$

The current loan rates $($not including auto and home$)$ are $9\%$

Income Statement $-2023$

Income or Expense

Income Annual Income

Reinvested Interest Income Expenses

Mortgage Payment

Real Estate Tax and insurance Utilities

Groceries

Dining Out

Gas

Auto Insurance

Auto and household maintenance

Entertainment

Federal Taxes

FICA

Personal Care

Clothing

Charitable Donations

Gifts to others

Miscellaneous expenses Reinvested interest

Discretionary Income

Discretionary Income $$ Positive or Negative

Amount $-$ Yearly

$$100,000$ $$200$

$$8,900$ $$3,100$ $$3,600$ $$2,400$ $$3,600$ $$1,200$ $$1,440$ $$1,200$

$$4,800$ $$12,250$ $$8,000$ $$2,400$ $$2,500$ $$10,00$ $$2,400$ $$2,400$ $$200$

$$39,610$