Problem

Paula Sanchez is trying to determine her 2009 finances. Paula's actual 2008 finances w...

Paula Sanchez is trying to determine her 2009 finances. Paula's actual 2008 finances were as follows:

Paula believes her gross income will double in 2009 but her interest income will decrease $150. She plans to reduce her 2009 living expenses by one-half. Paula's insurance company wrote a letter announcing that her insurance premiums would triple in 2009. Her accountant estimates her taxes will decrease $250 and her medical costs will increase $410. Paula also hopes to cut her investments expenses by one-fourth. Paula's accountant projects that her savings and checking accounts will each double in value. On January 2, 2009, Paula sold her automobile and began to use public transportation. Paula forecasts that her personal property will decrease by one-seventh. She has sent her bank a $375 check to reduce her bank note. Could you give Paula an updated list of her 2009 finances? If you round all the way each 2008 and 2009 asset and liability, what will be the difference in Paula's net worth?

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Solutions For Problems in Chapter 1