1. Mike and Mary Jane Lee have a yearly income of $65,000 and own a house worth $90,000, two cars worth a total of $20,000, and furniture worth $10,000. The house has a mortgage of $50,000 and the cars have outstanding loans of $2,000 each. Utility bills, totaling $150 for this month, have not been paid. find out or use Worksheet 4 to determine their net worth and describe what it means. How would the Lees' age affect your assessment of their net worth?
2. If the Potinsky household spends $39,000 annually on all living expenses and long-term debt, find out the amount recommended for an emergency fund. How might household circumstances (e.g, wage earners in the household, available credit, type and stability of employment) affect this decision?