The Simpsons have a yearly household income of $48,000 per year after deductions. Their monthly expenses are as follows: Entertainment Utilities Life and $300 $250 $200 disability insurance Groceries Clothes Mortgage payment Car loan payments Car insurance Holiday loan payments Total $350 $250 $700 (principal, interest and property taxes) $100 (for the next 20 months) $150 $150 (for the next 6.67 months) $2,450per month The Simpsons have the following assets: Chequing Savings Home $10,000 $2,000 $150,000 Two cars $10,000 Furniture $10,000 Cottage $40,000 Retirement savings $35,000 Total Assets: $257,000 The Simpsons have debt as follows: Mortgage on their residential property: Car loans (long term debt) totaling: $100,000 $20,000