Case 2. The Johnsons Decide How to Manage Their Risks
The financial affairs of the Johnsons have become much more complicated since we began following them in Chapter 2. Both Harry ($275 per month) and Belinda ($300 per month) have been given raises at work. They have purchased a $125,000 condominium that has added about $400 per month to their housing expense. They have purchased a $3200 used car, adding about $120 per month to their expenses. As a result of these changes, Harry and Belinda realize that they now face greater risks in their financial affairs. They have decided to review their situation with an eye toward managing their risks more efficiently. Use
Table 10.1, their net worth and income and expense statements at the end of Chapter 2 in your text, and other information in Chapter 10 to answer the following questions.
Directions: Fill in the fields below to submit your solution to this case.
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